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About this lesson

In this lesson, we'll discuss how to post directly to an income account.

Quick reference

Posting directly to the income account

This is one of the three ways to record income. 

When to use

You will use this when you do not need to track the customer or the products/sales the customer purchased. Examples of this would be someone selling at a Farmers Market, a medical office using practice management software, a retail store with an external point of sale system.

Instructions

I'm going to show you two methods, one is not better than another. They are two routes to the same destination. 

Method 1:

  1. Click on + New in the upper left hand corner
  2. In the popup that appears, click on bank deposit under the column called Other
  3. Scroll down to the lower section titled Add Funds to this Deposit
    1. Indicate who the money is received from (optional)
    2. Indicate which income account these funds apply to
    3. Add a description (optional)
    4. Add a payment method (optional)
    5. Add a reference number (optional)
    6. Add the amount 
    7. Scroll up and verify the bold number in the upper right hand corner is the amount of the deposit. If this number doesn't match the deposit receipt you'll get from the bank or see on the statement, correct it.
    8. In the lower right hand corner, click save and close (or save and new, if you prefer)

Method 2:

  1. Go to bank feeds
  2. When you see funds in the received column that are sales (meaning not transfers from another account or owner investment), click on any of the text related to this deposit
  3. When the gray box opens:
    1. Indicate who the money is received from (optional)
    2. Indicate which income account these funds apply to
    3. Add a memo (optional)
    4. Click either the blue or green add (they're both the same)

Hints & tips

  • Do not enter income this way if you are creating invoices and/or sales receipts. QuickBooks will allow it but this is where I see a lot of mistakes. 
  • If you bought something and later returned it for a refund, you'll use the same steps above to record that return. The difference is instead of picking an income account, you'll pick the expense account you used when recording the purchase. 
  • Even though you've entered a client name here, you will not see this sale in the client profile.
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  • 00:04 Hi, in this tutorial I'm going to show you how to post your deposits directly to your
  • 00:09 income.
  • 00:10 So in this case we're going to imagine we have a concession stand that sells stuff
  • 00:14 like popcorn and candy and soda.
  • 00:17 But they're not keeping track of each person they have sold to.
  • 00:20 They just want to say, I've sold these things, I need to record the income.
  • 00:24 But there's probably some sort of point of sale that keeps track of exactly how many
  • 00:28 units of each type.
  • 00:29 But at the end of the day, the accountant, or you,
  • 00:33 just needs to pop into QuickBooks and say, we sold some concession stand stuff.
  • 00:38 So let me show you how to take care of that.
  • 00:40 In the upper left-hand corner, we're going to click on the New.
  • 00:45 On the fourth column, we're going to to the words Bank deposit,
  • 00:48 under the word OTHER.
  • 00:52 We're going to say, we're depositing money into Checking 1234.
  • 00:55 We're depositing money into Checking 1234.
  • 01:00 This deposit is happening today.
  • 01:02 There's not any specific customer the money came from,
  • 01:05 it's a whole day's worth of candy sales.
  • 01:08 For the account,
  • 01:09 we're going to say which income account are we applying this money to.
  • 01:13 So we click the drop down and we look and
  • 01:15 we would normally find the income account we had in mind.
  • 01:19 But it's a new business and we forgot to add one, so let's do it now.
  • 01:23 A lot of this is stuff that's going to happen to you.
  • 01:27 You're going to think that you have everything you need on your chart
  • 01:30 of accounts, until you realize you don't have what you need.
  • 01:32 So we just scroll up the top of listing, and we say we want to add New.
  • 01:38 I want to add a new income account.
  • 01:40 I don't need to worry about my detail type.
  • 01:43 And I'm going to call it Candy and Soda income.
  • 01:47 You can call it whatever you want.
  • 01:50 Just imagine for your business if you get to this point.
  • 01:53 And you say, my gosh, I wish I had an income account that made sense for
  • 01:57 this thing that I'm selling, feel free to add it.
  • 01:59 I don't need a description, I know that it's my sales from A12.
  • 02:05 Maybe you would want a description,
  • 02:07 but generally speaking I don't see a lot of descriptions getting added.
  • 02:11 The payment method it's probably a combination of cash and check.
  • 02:14 Or more likely, it's just a bunch of cash.
  • 02:17 So I'll say the payment is cash.
  • 02:19 There's no reference number because we're not referencing a check number or
  • 02:23 anything else.
  • 02:24 And then how much money you've got to deposit?
  • 02:27 We'll say $3,000, we'll say we sold a lot of candy.
  • 02:29 I can add a memo if I want, I can add attachments if I want.
  • 02:34 And once I'm satisfied, I can click Save and New or Save and Close.
  • 02:39 Save and New just means make a new blank screen.
  • 02:43 Save and Close means save what I'm working on and close my screen.
  • 02:47 The other way you could go about doing this is, you could say, you know what?
  • 02:51 I'm just going to wait for the downloaded data to appear in my bank.
  • 02:55 So I'm going to go over to the Checking for this example.
  • 02:59 I'm going to say, all right, in my checking account, I have some deposits.
  • 03:02 Let's pretend that this mobile deposit of $35 was concession sales.
  • 03:08 Instead of using the default, the suggested account of just Sales.
  • 03:11 I'm going to change this dropdown and say, you know what?
  • 03:14 This actually is Candy and Soda income, and then click Add to the right.
  • 03:21 Just a quick reminder, the only time you're going to do this,
  • 03:24 where you pick the income account here from the banking screen.
  • 03:28 Or you click Other and then Bank deposit,
  • 03:31 is when you don't need to keep track of who you sold to or what you sold.
  • 03:35 By creating the deposit this way, it does not give you the option to pick things
  • 03:40 from the Products and Services list.
  • 03:43 All right, in the next videos,
  • 03:44 we're going to talk about creating a sales receipt, as well as an invoice.

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