B18 2505 BankDepositsDrawsLoans HOT 590016
Basic Deposits & Bank Draws and Loans: Getting incoming funds into the right places
Presented by: Diane C. O. Gilson President, Info Plus Accounting, Inc. Certified Advanced QuickBooks® Pro Advisor e-mail: [email protected] © Info Plus Accounting, Inc. Ann Arbor, MI 48104 web: www.BuildYourNumbers.com + www.InfoPlusAccounting.com
This session : Incoming funds are our friends! Let’s treat ‘em right Making deposits without “Receiving payment” When and when not to go directly to the “Make Deposit” screen Bank draws: Income or loan? When your deposit is less than the loan increase When your lender pays your vendor
Basic Depoosits & Bankk Draws andd Loans: Gettting incomiing funds to the right pllace
Incomingg funds‐ma aking depo osits witho out receivin ng a paym ment
o re: the Depo osit Screen: Bacckground info
1. Previous/Ne ext/Save (Stan ndard move o or Save choicees) 2. You can print Deposit Slip ps using pre‐p printed formss, 3. If you’ve received custom mer paymentss, click here too see a pop up screen thatt displays payyments osited. You can select the ones you waant to includee on this depo osit received butt not yet depo ticket. 4. History – pop up – primarry value is thaat it shows thhe date a paym ment was inittially received d. See example at tthe end of this numbered list. 5. Click here to o see the unde erlying Journaal entry (NOTE: mayy not be availaable in some versions – altternatively prress CTRL+Y) 6. Displays the bank account where the ffunds will be deposited. 7. “Top” Memo o = The memo o that will sho ow in drill do wn reports fo or the bank account. 8. Received Fro om = Custome er Job or Vendor name. Iff the refund iss related to a job, place th he job name in the Received from column. efer to use a $ $0 check to re ecord job‐cosst refunds so that Item‐bassed reports aare (NOTE: I pre correct [detaails explained d in another w workshop]). 9. “From Accou unt” = Accoun nt that will be e credited. 10. “Bottom” Memo = Memo o that will sho ow in drill dow wn reports reelated to the “From Account”
© Info Plus Accounting (may not be used or re-prin nted without p permission)
Page 1
Basic Depoosits & Bankk Draws andd Loans: Gettting incomiing funds to the right pllace
When would you u NOT go direectly to the D Deposit screenn to deposit ffunds? o When yo ou have received funds viaa a Sales Receeipt o When yo ou have received funds as a payment o n an Invoice o When yo ou have received funds fro om a Customeer and want tthe payment to show as a credit in their A Accounts Receivable accou unt (using “Reeceive Paymeents” – preferrred method)). money directlyy in a “Depossit” screen? When WOULD yyou deposit m o When yo ou have received funds fro om a Customeer that you w want to show as a credit in their Accounts Receivable account. (Accceptable: ennter Accountss Receivable in the “From Account” column and d their name in the Receiveed From colu umn. I recenttly suggested this approach to someone e who was ussing online baanking and do ownloading bank deposits. In both casses you’ll ultim mately need tto link the pa yment to theeir Invoice in aa separate steep.) o You’ve received a cusstomer depossit without acctually Invoicing them and want to postt it to either a Customer De eposits income or liability aaccount. Usee their name iin the Receiveed From fie eld. o Someone just boughtt some damagged windowss that you had d sitting in thee shop. (Credit w whatever acco ount the wind dows were orriginally chargged to. If it’s a COGS, use the NJS [Non‐job b‐specific] job b in the Received From col umn, and plaace the namee of the person who paid you u in the bottom [#10] Mem mo field.) o You just received a re ebate check o on a hard drivve that was pu urchased lastt month. (Where w was the cost of the hard d drive posted? Use the sam me account in the From Account field.) o You rece eived a Worke ers’ Comp reffund check. (Where has the Workkers’ Comp Co ost been expeensed? Use tthe same acco ount in the Frrom Account field, and use the NJS [No on‐job‐specifi c] job in the R Received From column.) o The own ner is depositiing money to o help with opperating costss. (Generally, this will in ncrease the “N Note P/Due tto owner” acccount.) o You rece eive a reimbursement from m an employeee for using a copier. (Use the e funds to offsset the copierr maintenancce cost – or offfice supplies cost.) d an old vehicle for $500. o You sold (Use the e “Gain or Losss on Sale of FFixed Assets” account and notify your tax accountan nts.)
© Info Plus Accounting (may not be used or re-prin nted without p permission)
Page 2
Basic Depoosits & Bankk Draws andd Loans: Gettting incomiing funds to the right pllace
Bank Dra aws:
Earn ned Income o or loan increa ases? Determ mination and d entry:
Establish h who “owns”” the loan: If your custom mer, then: You’ve prrobably already prepared a “draw requ uest” or AIA B Billing to supp port your requ uest for fundss. You shou uld also have ccreated an Innvoice in QuicckBooks; just receive fundss against th he Invoice. e loan (or the owner is incu urring debt on behalf of th he If your compaany owns the company), th c hen: You shou uld enter it as additional deebt. If a new loan, establish a new acco unt. Matching loan in ncreases to d deposit amou unts: o
o o
Is the de eposit less thaan the loan in ncrease? Have len nder loan feess and/or inspection fees b een fees deducted from lo oan proceedss? Time for the $ $0 check! e lending inst itution, placee their name iin the Payee Field. If the cost is rrelated to the Enter the cosst Items in the e Item tab as a positive am mount with th he correct job b assignment. a In the Expensse tab, enter tthe increase tto the checking or savingss account as aa positive amount (this creaates a depositt to the bank account) In the Expensse tab, enter tthe total incrrease to the lo oan as a negaative amount (this will increase t w the loan). It sshould be an exact offset tto the cost + bank depositt.
© Info Plus Accounting (may not be used or re-prin nted without p permission)
Page 3
Basic Depoosits & Bankk Draws andd Loans: Gettting incomiing funds to the right pllace o
Has the lender paid aa vendor on yyour behalf? $0 check to tthe rescue!
If a vendor haas been paid, place their nname in the PPayee Field. In the Expensse tab, enter tthe total incrrease to the lo oan as a negaative amount (this will increase t w the loan). Was the vend W dor cost alreaady on your bbooks as an Acccounts Payable? If yes, in the Expense ttab, enter “A Accounts Payaable” and the amount of th he payment(s) as a positive amount. Mem mo that the Bills are being ppaid by the leender. Be su ure to place th he Vendor naame in the Cu ustomer:Job ccolumn so thaat it will act ass a credit to yyour Accountss Payable. Afterr saving the ch heck, go to Paay Bills, and link the Bills aagainst the A//P offset you just cre eated. If no, in tthe Items tab,, enter the Iteems as job co osts. Matching bank lloan statemeents to books or more info)). o Don’t forget to do thiis! (See the R Reconciliationn Workshop fo
© Info Plus Accounting (may not be used or re-prin nted without p permission)
Page 4
Presented by: Diane C. O. Gilson President, Info Plus Accounting, Inc. Certified Advanced QuickBooks® Pro Advisor e-mail: [email protected] © Info Plus Accounting, Inc. Ann Arbor, MI 48104 web: www.BuildYourNumbers.com + www.InfoPlusAccounting.com
This session : Incoming funds are our friends! Let’s treat ‘em right Making deposits without “Receiving payment” When and when not to go directly to the “Make Deposit” screen Bank draws: Income or loan? When your deposit is less than the loan increase When your lender pays your vendor
Basic Depoosits & Bankk Draws andd Loans: Gettting incomiing funds to the right pllace
Incomingg funds‐ma aking depo osits witho out receivin ng a paym ment
o re: the Depo osit Screen: Bacckground info
1. Previous/Ne ext/Save (Stan ndard move o or Save choicees) 2. You can print Deposit Slip ps using pre‐p printed formss, 3. If you’ve received custom mer paymentss, click here too see a pop up screen thatt displays payyments osited. You can select the ones you waant to includee on this depo osit received butt not yet depo ticket. 4. History – pop up – primarry value is thaat it shows thhe date a paym ment was inittially received d. See example at tthe end of this numbered list. 5. Click here to o see the unde erlying Journaal entry (NOTE: mayy not be availaable in some versions – altternatively prress CTRL+Y) 6. Displays the bank account where the ffunds will be deposited. 7. “Top” Memo o = The memo o that will sho ow in drill do wn reports fo or the bank account. 8. Received Fro om = Custome er Job or Vendor name. Iff the refund iss related to a job, place th he job name in the Received from column. efer to use a $ $0 check to re ecord job‐cosst refunds so that Item‐bassed reports aare (NOTE: I pre correct [detaails explained d in another w workshop]). 9. “From Accou unt” = Accoun nt that will be e credited. 10. “Bottom” Memo = Memo o that will sho ow in drill dow wn reports reelated to the “From Account”
© Info Plus Accounting (may not be used or re-prin nted without p permission)
Page 1
Basic Depoosits & Bankk Draws andd Loans: Gettting incomiing funds to the right pllace
When would you u NOT go direectly to the D Deposit screenn to deposit ffunds? o When yo ou have received funds viaa a Sales Receeipt o When yo ou have received funds as a payment o n an Invoice o When yo ou have received funds fro om a Customeer and want tthe payment to show as a credit in their A Accounts Receivable accou unt (using “Reeceive Paymeents” – preferrred method)). money directlyy in a “Depossit” screen? When WOULD yyou deposit m o When yo ou have received funds fro om a Customeer that you w want to show as a credit in their Accounts Receivable account. (Accceptable: ennter Accountss Receivable in the “From Account” column and d their name in the Receiveed From colu umn. I recenttly suggested this approach to someone e who was ussing online baanking and do ownloading bank deposits. In both casses you’ll ultim mately need tto link the pa yment to theeir Invoice in aa separate steep.) o You’ve received a cusstomer depossit without acctually Invoicing them and want to postt it to either a Customer De eposits income or liability aaccount. Usee their name iin the Receiveed From fie eld. o Someone just boughtt some damagged windowss that you had d sitting in thee shop. (Credit w whatever acco ount the wind dows were orriginally chargged to. If it’s a COGS, use the NJS [Non‐job b‐specific] job b in the Received From col umn, and plaace the namee of the person who paid you u in the bottom [#10] Mem mo field.) o You just received a re ebate check o on a hard drivve that was pu urchased lastt month. (Where w was the cost of the hard d drive posted? Use the sam me account in the From Account field.) o You rece eived a Worke ers’ Comp reffund check. (Where has the Workkers’ Comp Co ost been expeensed? Use tthe same acco ount in the Frrom Account field, and use the NJS [No on‐job‐specifi c] job in the R Received From column.) o The own ner is depositiing money to o help with opperating costss. (Generally, this will in ncrease the “N Note P/Due tto owner” acccount.) o You rece eive a reimbursement from m an employeee for using a copier. (Use the e funds to offsset the copierr maintenancce cost – or offfice supplies cost.) d an old vehicle for $500. o You sold (Use the e “Gain or Losss on Sale of FFixed Assets” account and notify your tax accountan nts.)
© Info Plus Accounting (may not be used or re-prin nted without p permission)
Page 2
Basic Depoosits & Bankk Draws andd Loans: Gettting incomiing funds to the right pllace
Bank Dra aws:
Earn ned Income o or loan increa ases? Determ mination and d entry:
Establish h who “owns”” the loan: If your custom mer, then: You’ve prrobably already prepared a “draw requ uest” or AIA B Billing to supp port your requ uest for fundss. You shou uld also have ccreated an Innvoice in QuicckBooks; just receive fundss against th he Invoice. e loan (or the owner is incu urring debt on behalf of th he If your compaany owns the company), th c hen: You shou uld enter it as additional deebt. If a new loan, establish a new acco unt. Matching loan in ncreases to d deposit amou unts: o
o o
Is the de eposit less thaan the loan in ncrease? Have len nder loan feess and/or inspection fees b een fees deducted from lo oan proceedss? Time for the $ $0 check! e lending inst itution, placee their name iin the Payee Field. If the cost is rrelated to the Enter the cosst Items in the e Item tab as a positive am mount with th he correct job b assignment. a In the Expensse tab, enter tthe increase tto the checking or savingss account as aa positive amount (this creaates a depositt to the bank account) In the Expensse tab, enter tthe total incrrease to the lo oan as a negaative amount (this will increase t w the loan). It sshould be an exact offset tto the cost + bank depositt.
© Info Plus Accounting (may not be used or re-prin nted without p permission)
Page 3
Basic Depoosits & Bankk Draws andd Loans: Gettting incomiing funds to the right pllace o
Has the lender paid aa vendor on yyour behalf? $0 check to tthe rescue!
If a vendor haas been paid, place their nname in the PPayee Field. In the Expensse tab, enter tthe total incrrease to the lo oan as a negaative amount (this will increase t w the loan). Was the vend W dor cost alreaady on your bbooks as an Acccounts Payable? If yes, in the Expense ttab, enter “A Accounts Payaable” and the amount of th he payment(s) as a positive amount. Mem mo that the Bills are being ppaid by the leender. Be su ure to place th he Vendor naame in the Cu ustomer:Job ccolumn so thaat it will act ass a credit to yyour Accountss Payable. Afterr saving the ch heck, go to Paay Bills, and link the Bills aagainst the A//P offset you just cre eated. If no, in tthe Items tab,, enter the Iteems as job co osts. Matching bank lloan statemeents to books or more info)). o Don’t forget to do thiis! (See the R Reconciliationn Workshop fo
© Info Plus Accounting (may not be used or re-prin nted without p permission)
Page 4
