what if your customers paid the money directly into your bank account in order to be able to
record a transaction where the customers money goes directly into your account you have to
change the Preferences in the Preferences window let's take a look from the main menu
click Edit preferences of course the category of preferences in this case is payments we will click
the company preferences tab and notice this option is currently selected is this option
is currently selected it means that you are only able to record receiving money from customers into
this account undeposited funds if you click the checkmark to remove this option then click OK now
QuickBooks will allow you to record a transaction where you receive money from a customer and it
gets deposited directly into the bank account let's take a look let's imagine on February 21
Holden did 20 video hours for Betty she paid us immediately with a direct deposit into the bank
account well if she pays immediately no matter what method of payment we have to give her a
receipt your file should be up to receipt number 13 whenever you get paid directly into your bank
account there's always some very long weird number confirmation number as the unique transaction
number that identifies the transaction usually this is printed on the screen when you log in
to check your account activity right now there is no cash and bank listed on the trial balance but
at the moment you record this transaction cash and bank will show up on the trial balance for
the first time as six thousand dollars because we also earned video income during this transaction
video income will increase to six thousand six hundred dollars let's take a look we open the
sale receipt window and we choose customer Betty we make the date February 21 the item of service
that we did was video in the quantity was 20 and we notice we get our six thousand dollars
the most important point is you have to change deposit to to the cash in bank account this is
the first time that anyone even customers is putting money into the cash and bank account
I like to choose a cheque as the payment method to remind me that this money went directly into
the bank account and the confirmation number that you get when you log in should go here in
the cheque number field eight seven eight six eight five eight four eight three now
when we click Save and close we open the trial balance and we notice cash and bank has showed
up on the trial balance for the first time as six thousand dollars and video income went up
to six thousand six hundred dollars let's try one more February twenty-second receives six thousand
dollar payment from Betty for invoice number seventeen this was a direct deposit and here's
the confirmation number after we receive another six thousand directly into the bank account cash
and bank will be twelve thousand dollars because it was a customer paying a previous balance that
means that accounts receivable will decrease by six thousand and after this transaction
accounts receivable will become twenty seven thousand four sixty nine eighty four we opened
the payments window and make sure that we put February twenty-second the most important part
of this transaction is changing from undeposited funds to cash and bank we choose Betty and I like
to put a check as the payment method whenever there's a direct deposit the reference number
and put in the long weird reference number that you get whenever you have a direct deposit now I
always suggest you collapse the ribbon so it's easier to see all of the unpaid invoices Betty
paid six thousand we push tab and notice the computer properly selected the correct
invoice number seventeen when I click Save and close and look at the trial balance accounts
receivable decrease to the number we expected cash and bank went up by twelve thousand when
we double click cash and bank we can see that the only two transactions that have gotten recorded as
deposits to our bank account are the two direct deposits from Betty that we made in this video