I'll assist your client on how to match bank deposits and revenue recognition in QuickBooks, Arbooks1.
Once your client adds a Square transaction from the App transactions page in QuickBooks, it automatically creates a sales receipt and a deposit link to each other. They can now match them on the Bank transaction page. While this is acceptable in a cash-based accounting business, it can change the timing of revenue recognition in an accrual-based accounting business.
Since the reconciliation of Square transaction on the bank transaction page is done. Follow these steps to record the invoice payments, and ensure that each of these is posted in Undeposited Funds:
- Navigate to the + New button. Then, Receive payment.
- Select a Customer from the drop-down list.
- Enter the Payment Date and choose the appropriate Payment Method.
- Choose from Undeposited Funds in the Deposit To drop-down list.
- Place a checkmark for the corresponding invoice/s.
- Hit Save and close.
- Repeat these Steps 1 to 6 for the rest of the invoices.
Next, update the deposit record in your bank account. During this process, we'll need to unlink the Sales Receipt associated with the deposit and link it to the recorded invoice payment.
- In the upper right corner, click on the Gear icon.
- Choose Chart of accounts.
- Find the bank account where the Square transactions are posted after the matching process. Then, select View register.
- Locate the corresponding deposit transaction at issue. To help in this task, click the Funnel icon and choose Deposit from the Transaction type drop-down list.
- Select the deposit transaction. Then, hit Edit.
- Uncheck the sales receipt linked to it and place a checkmark for the invoice payment.
- Hit Save and close.
Finally, we can now proceed to delete the sales receipt that was previously linked with the deposit. Check linked attached for the steps.
Your client can also consider connecting only their bank and matching it to your recorded invoice in QuickBooks.
Once they're ready, here's a link that can help you reconcile and review your transactions in QBO:
If you have any more questions about managing banking transactions, drop a reply and we'll be here to assist you. Take care.
