would you like to be able to record depositing the income that you earn from customers
well in this episode of quickbooks online crash course
you will learn how to record deposits from the customers you serve
if you have any questions about this topic you can leave them in the comments section below
and i'll do my best to help you and of course if you feel the video helped you
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that come out all the time customers pay you by check cash or credit card swipe
or even direct deposit but ultimately the money winds up in the company bank account
they pay you for some service you provided to the customer that's the reason this deposit represents
earned income use the deposits window to record the customer name amount of money
and income account that relates to that deposit individual items of service or product
are not relevant when doing minimum bookkeeping in the very summarized way that we're learning about
in this course so for example let's imagine on january 1 of 2 2020 allen paid vanda
two thousand dollars for video services the funds were directly deposited into the bank account
so what will be the results after we record this very first deposit well right now your trial
balance is empty but if you physically deposited two thousand dollars into your bank account
that means that the cash and chase bank will show up in the trial balance for the very first time
in the amount of two thousand dollars and if the reason we earned that two thousand dollars is
providing a video service then video income will also show up in the trial balance in the amount of
two thousand dollars let's take a look at how to record it we record all transactions from the top
left in the new plus sign menu when we click we go to the column of other and click bank deposit bank
deposit even though the money was received from a customer since we are doing it in the minimum way
we will click bank deposit and you simply put in the information one by one notice quickbooks chose
the correct bank type of account to deposit the money into and we are going for january 1 of 2022.
so we received the money from customer alan arby and the reason we received the money
is because we earned video income and in each of these cases we just click the pull down arrow
to make the choice we need to make for bank account
name and account in the general ledger that represents the money we earned
then all we have to do normally we would put a description we would put if we got cash or check
we'll just put cash for now and we'll imagine it was directly deposited to the bank account
of course there would normally be a transaction number but the amount
is 2 000 and at the moment let's just pull this up a little higher so you can see we can choose save
and new or save and close click save and close and now let's check the results when we click reports
and we go to custom and trial balance lo and behold cash in bank shows up for 2 000 exactly
as what we predicted and video income shows up for two thousand exactly as what we expected
now let's do the next one let's imagine on january second of two 2022 allen paid wanda a thousand
dollars for editing services and again the funds were directly deposited into the bank account
what will be the results well if this is what the trial balance looks like before that transaction
and we just put an additional thousand dollars into the bank account then cash and chase bank
becomes three thousand dollars and because this is the first time that we have earned editing income
editing income will show up on the trial balance for the very first time as a thousand dollars
we'll record it the same way click new bank deposit put the date the money went into the bank
click under received from then click the arrow and choose betty boop
click the pull down arrow for account and choose editing income now in a real situation
we might have more uh details about these three pieces of data but let's skip over to amount
push tab and now we have an amount for a thousand dollars and now we can click save and close
and you see the results and the trial balance are exactly as what we expected
now let's see what the results look like in the other reports if we click reports and stay in the
custom report section you can click transaction list by customer and you can see there was one
deposit from allen on january first and one deposit from betty on january 2nd and you can see
the dates and amounts separated by customer if you click reports and then you click profit and loss
you will see the two individual income accounts with whatever balance was showing originally
back over in the trial balance but the difference in the profit and loss
is that it will total the income section to tell you the total income and later it will tell you
the total expenses even though the individual numbers are listed back over in the trial balance
now let's try two more and see what happens let's imagine on january 3rd 2022
candy gave us 1 500 for video services rendered and it's always deposited into the bank so what
will be the results well how much did she give she gave fifteen hundred specifically for video
so if you have fifteen hundred dollars more in your bank account cash and bank will become
forty five hundred and if you have fifteen hundred dollars more earned in video income video income
becomes three thousand five hundred let's go ahead and record it so we click new bank deposit
the date is january third received from candy the account in this case is video income
because that's what we earned and the amount we earned and actually deposited
push tab that's all you have to do now when you click save and close click reports
trial balance and now you can see the results and the trial balance are exactly as what we expected
let's just do one more let's imagine on january 4th of 2022 alan gave us
2500 for editing services that we rendered and again it's always deposited into the bank
so if we got twenty five hundred more specifically for editing
what will the results become in the trial balance well cash and bank increases by 2500
and becomes 7000 and editing income increases by 2500 and becomes 3 500. we click new bank deposit
january 4th received from alan arby the account was editing income and the amount
now when we click save and close the final numbers in our trial balance are exactly as
what we expected them to be before the transaction now let's check the other reports and you can see
reports and let's check the transaction list by customer now there are two transactions with alan
so it gives us the total of the transactions this total is an arbitrary number that is not
particularly helpful because this report is simply a list of the transactions by customer
however if you click reports and go to the profit and loss you can now see that we've earned a total
of seven thousand in income for each of the two thirty five hundred dollar uh money amounts that
are the results of the services that we rendered to the customer now here's the big question what
if you made a mistake if you made a mistake it's very simple to fix just open the transaction from
the detailed report change what you want to change and all reports and the numbers in those reports
will change immediately so the quickest way is to go to the detailed report so transaction list by
customer and vendor are two detailed reports that list each transaction we can open up one of those
and just double click on the one we want to change and as soon as we save that change all reports
results will change with it so let's do this let's make a really big change and see what happens okay
for example reports and we click transaction list by customer now let's imagine for betty instead of
a thousand we put a million you can always open any transaction that you previously saved by
looking at the report that lists the transaction individually double click anywhere on the line
right on that transaction and the same window that you used to record that transaction will reopen
and you can make any change you want you can change the customer you can change the account
let's change the money account to a million or 10
10 million a huge giant absurd number going into editing income and going into the bank account
look what happens when we click save and close the results change immediately not
only on this report click reports trial balance the numbers immediately change on any report
you can also reopen and fix mistakes and change previously saved transactions from summary reports
like the trial balance or the profit and loss they simply require an extra click for example this is
a summary report and this number in cash and chase bank is the sum total of all of the transactions
that were recorded in that account but in any summary you can double click the summary number
and you will immediately get another report that shows the detail of every transaction that adds up
to that summary number you may have to scroll to the right or to the left to see the entire line of
the transaction but that's what you're looking at here now if we scroll to the right we can see that
the offending transaction is this one so as soon as we see the mistake in the list of transactions
we can double click and we can change the number right back to what it was
now that we made our change we can click save and close and immediately when we click reports
trial balance the numbers go back to exactly what they were and
the result of the change happens immediately on all reports so you are never lost
in quickbooks online you can always open the relevant report change the transaction
and then as soon as you save it all numbers will fix themselves immediately you