How do I handle my Cash Deposits?
How does FlexBooks handle cash sales in MindBody?
When you record a cash sale in MindBody, FlexBooks enters a Sales Receipt in QuickBooks with the Payment Method "Cash", and puts the money in an account that holds it until you take it to the bank. FlexBooks uses an account called Cash On Hand for this, unless your account was set up to use Undeposited Funds instead.
Both accounts work the same way. They are a place to hold cash you have received but not yet deposited, like an envelope you keep at the front desk until you go to the bank. For more about Undeposited Funds, see What is Undeposited Funds?
Why do I need to do anything when I deposit cash?
Neither MindBody nor FlexBooks knows when you take your cash to the bank, so this one step is yours. When the deposit shows up in your bank feed, record it as the cash moving out of Cash On Hand (or Undeposited Funds) and into your bank account. The cash was already counted as income when FlexBooks recorded the sale, so the deposit itself is not new income.
Which one is yours?
In QuickBooks, open any recent Sales Receipt with the Payment Method Cash and look at its Deposit to field. If it says Cash On Hand, follow the Cash On Hand steps. If it says Undeposited Funds (or Payments to deposit), follow the Undeposited Funds steps. Ask us if you are not sure and we will tell you.
How do I record a cash deposit when my cash goes to Cash On Hand?
Record the deposit as a transfer from Cash On Hand when it arrives in your bank feed:
- In Bank transactions, on the Pending tab, click the cash deposit.
- Make sure the row is set to Categorize rather than Match.
- Set Transaction type to Transfer.
- Set Transfer Account to Cash On Hand.
- Click Post.
QuickBooks often fills in an income account such as Sales or Services on a deposit by itself. Change it as above before you click Post, because posting a cash deposit to an income account counts that cash as income a second time.
If you already record your cash deposits by creating a Bank Deposit with an Add funds to this deposit line to Cash On Hand, that works too. In that case, Match the bank-feed line to the Bank Deposit you created instead of posting it.
How do I record a cash deposit when my cash goes to Undeposited Funds?
First, you need to Create a Deposit:
- Click the + Create button at the top of QuickBooks, then Bank Deposit
- At the top of the screen, select the bank account that the cash payments will be deposited to
- Select the date of the deposit (this is important for proper recording and reports)
- Below you'll see a checklist of all transactions in the Undeposited Funds. Select all of the Cash payments that you deposited at the bank
- Click Save and Close at the bottom right of the screen.
Second, you need to Match the Deposit you just created to the Bank Feed deposit:
Your bank feed will bring in the same deposit once the bank has it. Match the two so the money is not counted twice:
- In QuickBooks, go to Bank transactions and find the deposit line from your bank on the Pending tab.
- If its button reads Match, click it. QuickBooks has found the Bank Deposit you just created.
- If it reads Post instead, do not click it. Click the row to open it, choose Match, click Find other matches, set Record type to Deposits, and select the Bank Deposit you just created.
Checks work differently: in QuickBooks Online, FlexBooks always sends them to Undeposited Funds. See How do I handle my Check Deposits?
For more information, see: