How to Record and Receive Customer Payments in QuickBooks

If you crafted 2020 business goals in 2019, you’ve probably had to revise them due to COVID-19. Despite the disruption of the last six months, we hope that you have managed to stay healthy and keep your small business running.

How to enter customer payments made with a check

It’s more important than ever to conscientiously record all of the money coming into your company and ensure that it gets deposited into your account(s). QuickBooks Online offers several ways to accomplish this. Whether you’re receiving payment on an invoice, documenting an instant sale, or selling on the road, the site provides tools to make sure that your receipt of the funds is entered in the correct place.

Delayed Payments

Do you send invoices for products and services? If so, there’s more than one way to record payments when they come in. You can, of course, just open the invoice and click Receive Payment in the upper right corner. We find, though, that going to the All Sales screen gives us a chance to check the status of other pending transactions. Click Sales in the toolbar, then All Sales.

If your list isn’t very long, you can just look for the invoice number. If not, you can use the Filter tool to find the original form. Click the down arrow next to Filter in the upper left to see your search options here (Status, Customer, etc.)

The Receive Payment window opens.

1.Enter the customer’s name or select it from the customer list.
2. Payment date – Enter the date you received the check (this date is important – make sure you enter the right date).
3. Payment method – Enter the payment method; for this example, we are using Check.
4. Reference No. – Enter the check number.
5. Deposit to – This is very important. I want you to select the account called “Undeposited Funds”. You’ll see why later.
6. Amount received – enter the amount of the check.

Recently, my friend Jane called and shared her struggles with me. Sadly, I had heard the same story so many times before. Her QuickBooks Online is a mess. Her accounts receivable balances are all wrong, her bank account balance is messed up, and her income shows twice as much as she’s made. What could be wrong? Well, Jane doesn’t know how to enter customer payments and deposits in QuickBooks Online. In fact, one of the most common mistakes made by untrained users in QuickBooks Online happens when they try to record customer payments. So, today I’m going to show you how to enter customer payments and deposits in QuickBooks Online.

How to enter a bank deposit in QuickBooks Online

As I mentioned, entering customer payments and deposits in QBO is one of the most common mistakes made. Why? Because untrained users, like Jane, are not aware of the specific steps that they need to follow QuickBooks How to Find Unapplied Payments. They try to take shortcuts and end up making a big mess. I’ll show you a simple way that will keep your QBO mistake-free. You’ll see that it will be much easier for you to match up your transactions to your downloaded banking transactions with this method.

How to enter customer payments received via electronic funds

1. Enter the customer’s name or select it from the customer list.
   2. Payment date – Enter the date you received the check (this date is important – make sure you enter the right date).
   3. Payment method – Enter or add the payment method “EFT/ACH”.
   4. Reference No. – Enter a reference number if you want to. This is not required.
   5. Deposit to – This is very important. For electronic funds, I want you to select the bank account where the funds were received. In this case, we do not need to use the Undeposited Funds as I mentioned earlier.
   6. Amount received – enter the amount of the ACH or wire transfer received. I am assuming that you received the full amount due from your customer. There will be a separate tutorial if you receive an amount less than the invoice amount.

Why do you have to do all this data entry? Why can’t you just enter all these transactions from the Banking transactions window? [bctt tweet=”Keep in mind that QBO is a business software application. It’s not like Quicken.”] QuickBooks works in very specific ways and I have learned after training hundreds of business owners in QuickBooks that this is the best way to enter these transactions so that you can avoid all the mistakes that everyone else makes. Sometimes a little bit of data entry will prevent very costly mistakes.

Get Technical Services:

If you generate sales on the road, you can still create sales receipts for customers using the QuickBooks mobile app. Just click the plus (+) sign at the bottom of the screen and select Sales Receipt. The form is similar to the one you’d use on your desktop computer, though the layout is different. Get Contact Number 1800-993-4190.

Having a QuickBooks Payments account is especially helpful when you’re making mobile sales. You can even swipe your customers’ credit and debit cards if you order a card reader from Intuit. We can walk you through this process.

Source: 

How to create and manage your payments User id in QuickBooks

How to set up a refund account in QuickBooks

Set QuickBooks Payments Subscription