Skip to main content
I
Illes
October 30, 2023
Question

Check made out to owner, not business name

  • October 30, 2023
  • 1 reply
  • 0 views

Hello all, this one puzzles me as to how to book  the payment in QB 21 desktop version, running on Windows 10. Here's the short version...

 

Some of my clients pay their invoices made out to my name, instead of the business name. My bank, where the business account is, does not allow depositing "personal checks" to the business account. 

 

One way I found to do it is cumbersome, deposite the checks to my personal checking account, write a personal check for the same amount to the business name and use this check for client payment. That keeps QB happy, in balance and client invoice paid.

 

 Is there a way to use the the client's check to enter as payment, but instead of deposit to the business checking account, just add it to owner's equity. Doing so would record this as income, mark the invoice paid and the actual payment is deposited to my personal checking account. That would eliminate writing personal checks to my business name. There's a choice of "Owners Bank Account" in the deposit screen, but not certain, if that does what I am looking for. 

 

Any suggestion would be appreciated... Thx...

1 reply

J
JamaicaA
October 30, 2023

Hi, @Illes. I'll provide a way to record the check payment and mark the invoice as paid without writing personal checks to your business name.

 

Aside from depositing checks into your checking account, you can also enter the data manually by using the write checks feature. Just make sure to put the correct amount and date, then link it to the invoice.

 

Here's how:

 

  1. Open the invoice and click the Receive Payments.
  2. On the Customer Payment window, select the Check.
  3. Tap Save & Close to update the invoice status into Paid.

 

I'm adding some screenshots for reference:

 

 

 

In terms of selecting an account, I recommend contacting an accountant. They can guide in adding the transactions under the owner's equity.

 

See this article to learn what more you can do with Checks: Create, modify, and print checks.

 

In case you need to combine payments from the UF account, refer to this link: Deposit payments into the Undeposited Funds account in QuickBooks Online.

 

Please let me know if you have follow-up questions about your receivables. I'm always ready to help you. Take care.

I
IllesAuthor
October 31, 2023

Thanks Jamaica...

I am not clear on the writing checks part of your response. My QB desktop only has one business checking account, not connected to the bank, no other is available. Writing out a business check to myself would recorded as owner's equity in QB, correct? If it is, I'd need to write out a business check to my name and deposit it to my personal account.

 

Certainly, I will disccuss creating a "owner's equity" transaction that presumably will bypass checks. 

Terms & ConditionsAccessibility statement