How do I handle my Cash Deposits?
How does FlexBooks handle Cash sales in MindBody?
When you record a cash sale in MindBody, FlexBooks will enter a Sales Receipt in QuickBooks with the Payment Method "Cash" and send the funds either to "Undeposited Funds" or an Other Current Asset called "Cash on Hand".
Why can't FlexBooks account for my cash deposits automatically?
Because neither MindBody nor FlexBooks knows when you physically take your cash to the bank and deposit it – neither can automatically help you account for this second step and it will be up to you to do this manually in QuickBooks
What is Undeposited Funds?
The Undeposited Funds account in QuickBooks Online serves a special function – it’s a special temporary account that QuickBooks uses to hold payments received before you deposit them into in the bank. Think of the Undeposited Funds account as an envelope where you keep cash and checks until you take them to the bank.
For more information about Undeposited Funds, please see What is Undeposited Funds?
What is the "Cash on Hand" asset account?
For clients who receive a lot of Cash sales and request it, FlexBooks will send cash to a "Cash on Hand" asset account instead of Undeposited Funds. Cash on Hand functions exactly the same as Undeposited Funds (it’s a temporary account to hold funds received before you deposit them into in the bank) but the only difference is that you don't need to actually click on each individual transaction to transfer them out of the account.
How do I account for my Cash deposits after they've been sent to Undeposited Funds?
First, you need to Create a Deposit:
- Click on the Plus (+) Icon in the top of the screen in Quickbooks Online
- Click on 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:
This is exactly the same process as matching your credit card deposits. Please see the article How Do I Match My Deposits? for detailed instructions.
What do I need to do to account for my Cash deposits after they've been sent to Cash on Hand?
First, you need to Create a Deposit:
- Click on the Plus (+) Icon in the top of the screen in Quickbooks Online
- Click on 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)
- Scroll to the bottom of the deposit under the "Add other funds to this deposit. Select "Cash on Hand" in the account type drop down. Enter the total amount you wish to deposit
- 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:
This is exactly the same process as matching your credit card deposits. Please see the article How Do I Match My Deposits? for detailed instructions.
For more information, see: