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A
aes74
November 3, 2021
Question

How do I categorize income from my contract work?

  • November 3, 2021
  • 1 reply
  • 0 views

Hi, I am a bookkeeper, and I also do contract work for another bookkeeper as well. I am not an employee of their company. How do I categorize the income deposits that come in to my bank account from that work? 

1 reply

R
RCV
November 3, 2021

Let me help you categorize income from your contract work, aes74.

 

We can create a sales receipt or deposit then select an income account to record the transaction. You can follow the steps and details in the Create and send sales receipts in QuickBooks Online article to enter the sales receipt. To make a deposit, just follow the steps below:

  1. Click the + New Plus icon. 
  2. Select Bank Deposit.
  3. In the Add funds to this deposit section, go to the Account column and choose the income account.
  4. Fill out the information in all the columns in the Add funds to this deposit section. 
  5. Press Save and close or Save and new.

 

To learn more about this one, see the Record and make bank deposits in QuickBooks Online article. Feel free to visit our Banking page for more insights about managing your bank feeds and reconciling accounts.

 

If you need to take care of other things in QuickBooks, I'm with you every step of the way. Just leave a comment below and I'll get back to you. Have a great day. 

A
aes74Author
November 3, 2021

I see what you're saying about the bank deposits, but I created an invoice and was paid by this company. So I'm wondering why it doesn't automatically show a match when that amount comes in? Will it do that or do I code it a certain way?

M
Maybelle_S
November 4, 2021

Recording payments are manually done in QuickBooks, @aes74.

 

However, there's a feature in QuickBooks Online that you can automatically apply credits to invoices. You simply need to turn on the feature.

 

Let me show you how:

 

1. Click the Gear icon at the upper right corner.

2. Under Your Company, click Account and Settings.

3. Go to the Advanced tab in the left panel.

4. Select Automation and put a checkmark for Automatically apply credits.

5. Click OK, and then Done.

 

Check out this link to learn how and when to give a credit memo or delayed credit to customers: Create and apply credit memos or delayed credits in QuickBooks Online.

 

You are always welcome to get back in touch with me if there's anything else you need concerning QuickBooks. Just leave a comment below, and I'll help you.

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