How to record interest on your bank account

QuickBooks Online (QBO) and QuickBooks Desktop (QBDT) are distinct products, each is designed with unique features tailored to different business needs. In QBO Simple Start, you can easily create a bank deposit to record the interest earned. Let me guide you through the process.

To start, let's create a new interest account to track the interest. Here's how:

1. Go to the Gear icon at the top and choose Chart of accounts.
2. Select New to create a new interest account.
3. Under the Account Type column, select Other Income.
4. Choose Interest Earned under the Detail Type column.
5. Under the Name column, enter any name which is applicable.
6. Select Save and Close.

After that, here's how to create a bank deposit:

1. In the left menu, click the + New button.
2. Choose Bank Deposit.
3. Under Add funds to this deposit, select the customer’s name who paid the interest, then select the interest account you just created.
4. Enter a description, payment method and amount.
5. Choose Save and close.

For more detailed guidance on tracking deposits, check out this article: Record and make bank deposits in QuickBooks Online.

For upcoming tasks, I encourage you to regularly reconcile your accounts in QBO, ideally every month. This will help you stay on top of your income and expenses and quickly identify any mistakes. To help you with this, check out this article: Learn the reconcile workflow in QuickBooks.

In addition, we have a team of experts who can offer personal guidance on linking your accounts, automating tasks, and teaching the best bookkeeping practices to increase your efficiency. Check out QuickBooks Live Expert Assisted for more details.

I'm all ears should you have any concerns in handling your bank transactions, just click the Reply button.