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richandreplenished
February 15, 2019
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Recording Cash Deposits with Square POS

  • February 15, 2019
  • 1 reply
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Hi,

 

I am using Square POS with Commerce Snc to QBO. My credit card sales are automatically recorded and deposited with Commerce Syc. However, my cash sales are lumped into undeposited funds.

 

What is the best way to manage deposits to that my bank transactions match the cash deposits? I currently don't make deposits daily, maybe 2-3 times a week. Also, when I make a deposit I usually count the drawer down and leave around $150 in the drawer. Then I deposit the rest. 

 

Also, I deposit only an even cash amount not change. Square  copies the cash amount to undeposited funds including change, (ie. $125.55).

 

Thanks!

Best answer by Angelyn_T

Thank You @IamjuViel. 

 

This would make the bank account balance. However, should I be concerned with the following?

  • Does the grocery amount show somewhere as an expense or COGS? For example if the grocery purchase was Strawberries.
  • Does the Petty cash amount add to the petty cash already on hand?

Thanks,

John


Hi there, @richandreplenished.

 

Allow me to join the thread and help share additional information about recording deposit in QuickBooks Online (QBO).

 

The grocery amount shows up depending on what account you've entered/chosen when creating the deposit. If you've chosen an Expense account it'll then show up as an expense while if you've chosen Cost of Good Sold (COGS) it'll show as COGS.

 

On the other hand, yes, the Petty Cash amount automatically adds to the Petty Cash account you've chosen when recording the transaction. To verify the deposit, you can check your Petty Cash register.

 

Let me know if you have any other questions about recording deposits in QBO. It's my pleasure to help you!

1 reply

BettyJaneB
BettyJaneB
February 15, 2019

Hi there, @richandreplenished.

 

I'm here to provide you with the best way to manage your deposits so your bank transactions will match to your cash deposits.

 

You'll need to deposit the transactions from your undeposited funds into QuickBooks Online.  This way you'll be able to match the transactions on your actual deposit. 

 

Let me guide you how: 

  1. Select the Plus icon (+) on the Toolbar.
  2. Under Other, select Bank Deposit.
  3. In the Choose an account field, select the bank account to which to deposit funds.
  4. If available, select the checkboxes of the transactions to deposit in the Select the payments included in this deposit or QuickBooks Payments sections.
  5. In the Add funds to this deposit table, enter information about any additional items to include in this deposit, including who the item was Received From, the Account, Payment Method, and Amount of the item.
  6. Select Save and close or Save and new.

For more details about this process, please check out this article: How to record bank deposits.

 

Once done, you can now match the transactions from your actual deposit. 

 

Here's how:  

  1. On the Banking page, select the For Review tab.
  2. Select the transaction to open it.
  3. Select the Find other records or Find match button to open the Match transactions window.
  4. Use options on the Show drop-down to narrow the transaction you're looking for.
  5. Select all the checkboxes of the matching transactions, then verify if the total amount is the same as they downloaded transaction.
  6. Select Save.

To learn more about matching transactions in QuickBooks, please refer to this article: Add and match downloaded banking transactions.

 

Also, here are some articles about the use of deposited funds in QuickBooks and how it works for your future reference: 

If you need additional assistance with this procedure, feel free to reach out to our Customer Care Team. They have the tools to check on your deposits and guide you with the steps. You can reach them through the contact details found in this link: Contact the QuickBooks Online Customer Support team.

 

These resources should get you on the right track.

 

Please don't hesitate to reach out to me here should you have any further questions, I want to make sure you're taken care of. Thanks for coming to the Community and take care.

    R
    richandreplenishedAuthor
    February 15, 2019

    Hi @BettyJaneB,

     

    Thanks for your reply. I may need to clarify further. My cash sales from Square are automatically synched to undeposited funds in QBO daily by commerce Sync. However, the amount I want to deposit doesn't always match what is sent from Square. For example, I may leave some of the cash in the register for change, or may need to use some cash to purchase goods. Also, my deposits are whole numbers so if Square says I made 450.27 cash I would only deposit the cash not  the change amount. I want to make sure everything matches.

     

    I think I may have come up with a solution that may work. Let me know what you think of the following scenario?

    • I'm thinking of creating a Petty Cash/Cash on Hand account
    • I can have Commerce Sync deposit all cash received for the day to Cash on Hand account
    • Then when I'm ready to make a deposit. (I need help here)
      • Could I just transfer the amount to my checking when I'm ready to make a deposit? I'm thinking this could solve my problem because the bank transaction should match the amount deposited.
      • Or, should I transfer the deposit amount from Cash on Hand to undeposited funds. And then make the deposit from undeposited funds?

    One thing missing from the scenario is when the drawer is short or over. How would I account for over/short?

     

    Thanks,

    John

    BettyJaneB
    BettyJaneB
    February 16, 2019

    I appreciate the clarifications you've given, @richandreplenished.

     

    Allow me to provide additional insights about this concern.

     

    Transferring an amount from Undeposited Funds to a Petty Cash account isn't recommended. This is because it will not clear out the amount from the Undeposited Funds.

     

    What you're going to do is to Deposit the amount and add a line item with a negative value for the expenses to be deposited. You can also create another deposit to be transferred on the Petty Cash account for the change in whole numbers that you wish to deposit.

     

    To guide you with the process, please check out this article: How to set up petty cash.

     

    Please let me know how it goes. I'll be around if you need additional assistance. Have a great weekend!

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