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angiebailey1
January 8, 2021
Solved

How do I record Interest earned from my bank?

  • January 8, 2021
  • 2 replies
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Original commenter did not share additional details
    Best answer by MichelleBh

    Hello, @angiebailey1.

     

    I'll share with you the complete actions in recording interest in QuickBooks Online. 

     

     

    There are two ways of recording the interest, either in the Reconciliation page or creating a new interest account. 

     

    See the sample screenshot for the Reconciliation section. 

     

     

    Here's how to create an account: 

     

    1. Go to the Accounting tab on the left side. 
    2. Select Chart of Accounts then hit New. 
    3. Under the Account Type column, select Other Income. 
    4. In the Detailed Type drop-down, choose Interest Earned. 
    5. Type a specific name in the box. 
    6. Tap Save and close. 

     

     

    After that, let's go to the Plus icon, then choose Bank Deposit to post the amount. 

     

    1. On the Deposit page, choose the account you've created. 
    2. Enter the amount. 
    3. Hit Save and close. 

     

    For more details, check out this article: Record and make bank deposits in QuickBooks Online. 

     

    You can always run the report by going to the Accounting menu. Then locate the account, and hit the Run report.

     

     

    I've also added articles about handling and reconciling accounts in QBO. 

     

     

    Post again if you have any other questions. I'm always here to help. Wishing you a good one!

    2 replies

    MichelleBh
    MichelleBhAnswer
    January 9, 2021

    Hello, @angiebailey1.

     

    I'll share with you the complete actions in recording interest in QuickBooks Online. 

     

     

    There are two ways of recording the interest, either in the Reconciliation page or creating a new interest account. 

     

    See the sample screenshot for the Reconciliation section. 

     

     

    Here's how to create an account: 

     

    1. Go to the Accounting tab on the left side. 
    2. Select Chart of Accounts then hit New. 
    3. Under the Account Type column, select Other Income. 
    4. In the Detailed Type drop-down, choose Interest Earned. 
    5. Type a specific name in the box. 
    6. Tap Save and close. 

     

     

    After that, let's go to the Plus icon, then choose Bank Deposit to post the amount. 

     

    1. On the Deposit page, choose the account you've created. 
    2. Enter the amount. 
    3. Hit Save and close. 

     

    For more details, check out this article: Record and make bank deposits in QuickBooks Online. 

     

    You can always run the report by going to the Accounting menu. Then locate the account, and hit the Run report.

     

     

    I've also added articles about handling and reconciling accounts in QBO. 

     

     

    Post again if you have any other questions. I'm always here to help. Wishing you a good one!

      N
      nonyanon
      November 16, 2021

      when my boss earns interest in her bank account - do I make the payee my boss' name as vendor?

      C
      Charies_M
      November 16, 2021

      Thanks for visiting this thread, nonyanon.

       

      Yes, you can make your boss the payee or vendor when recording interest earned from her bank. Even so, I'd still suggest consulting your accountant about this. They can provide expert advice on how to record interests in QBO. For instructions, you can use the steps outlined by my colleague above.

       

      You might also want to visit our QuickBooks Online learning guides for tutorials and webinars about the product.

       

      If you have any other follow-up questions about this or any QuickBooks questions, please let me know by adding a comment below. I'm always here to help. Have a good one!

      H
      hal_ashley
      February 10, 2023

      I am trying to categorize the interest earned from my bank through the banking feature as I have my bank account connected to QB. When I go to categorize the interest I choose the interest earned category that was already made in the category groups. But as per usual when categorizing anything with this it needs to know the gst/hst for this transaction. What do I put? hst on sales/hst on purchases/zero rated sales/ zero rated purchaes/ exempt sales/exempt purchases/out of scope sales/out of scope purchases.

      This is so silly but need to know sorry.

      A
      AbegailS_
      February 10, 2023

      Hi there, @hal_ashley. 

       

      I want to help share some insights regarding your question about the sales tax feature in QuickBooks.

       

       The GST and HST are default accounts and automatically created. Regardless you created your own GST and HST accounts, QuickBooks Online will still use the default accounts.

       

      Looking at your situation, I recommend speaking with your accountant. They can check your tax setup and transactions linked to your concern.

       

      You can also ask them about the proper procedure for recording the transactions that fit your business needs to avoid issues in the future.

       

      I've added some articles about managing sales tax and bank transactions in QBO:

       

      If you have any other questions about recording vendor/customer transactions in QuickBooks, please feel free to add a comment below. I'm always here to help. Keep safe!

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