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Tiffster81
January 10, 2025
Question

Deposits From Cash Register

  • January 10, 2025
  • 1 reply
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My client's company makes deposits into their bank account from their cash register that. The sales from the cash is already accounted for. What type of account would I set up for these deposits and how would I classify these transactions. I am using QBO.

    1 reply

    FishingForAnswers
    FishingForAnswers
    January 10, 2025

    @Tiffster81  If they are depositing money from the cash register into the bank account, then the amounts should already exist in QB in one of two forms; either as Undeposited Funds or in a Current Asset or similar used to track the cash register balance.

     

    If the sales from the cash that they are depositing are already accounted for and were already treated as a deposit, then there are already errors in your records.

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      Tiffster81Author
      January 10, 2025

      Yes, the deposits are in the books, but I don't know what ledger account to classify them into. Like I would not class them to sales bc its not a sale its a deposit from the cash register. I am asking what ledger account would I put the deposits into. Thank you for your help.

      FishingForAnswers
      FishingForAnswers
      January 10, 2025

      @Tiffster81  What I mean to say is, it depends on how the sales were handled to begin with.

       

      When you recognize income in QB, whether by sale receipt or invoice or what have you, it either is deposited into a Bank type account, a Current Asset type account, or into the Undeposited Funds account.

       

      Since they're taking it from the cash register, I would normally assume that the money from the sales was put into Undeposited Income in QB.

       

      That being the case, you'd use Undeposited Income as the source account on the deposit, effectively moving a value from one Asset account to another Asset account, no additional income recognition required.

       

      "Also, the asset account the deposit is debited into is cash, which account do I credit with this transaction?"

       

      If you mean that the money from the original sale was already put into a Cash Current Asset account, then that same Cash Current Asset account would be your source account in the new deposit. This would also be moving an amount from one Asset (Cash Current Asset) to another Asset (Bank). This action would debit the Bank, raising its balance, and credit the Cash, lowering its balance.

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