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Learn how to handle the accounting in QuickBooks Online when a customer's cheque bounces. Or follow these steps if you need to record one of your own bounced cheques. Did your customer pay for their invoice with a cheque that didn't go through? Unfortunately, customer cheques sometimes bounce. We're here to show you how to handle the accounting in QuickBooks Online. What you need to record These steps can be complicated, but doing them correctly balances your accounts so you have a clear record of what happened. Here's what we need to do: Show the amount of the customer's check was deducted from your bank balance. Show the bank charged you a fee. Mark the customer's invoice they were supposed to pay as "open" and unpaid. Charge your customer a fee for the inconvenience (this is up to you). Send a statement to tell the customer what they owe you for the original invoice and any fees. How to record a bounced cheque There are a few ways to handle the accounting. You can use an expe

Learn how to see your best sellers, what’s on hand, the cost of goods, and more. Use reports to get helpful insights on the things you buy and sell, and the status of your stock. We’ll show you which reports to run depending on what kind of info you want to see. To get started, go to Reports, then select Standard. Once you're there, here's what you can do. See your best sellers Go to the “Sales and customers” group of reports. Then run these reports to see your sales by products and services: Sales by Product/Service Summary: Your total sales for each product and service. Sales by Product/Service Detail: Your sale transactions by product or service. Check what’s in stock Go to the “Sales and customers” group of reports. Run these reports to know what’s on hand, so you always have what your customers want: Stock Valuation Summary: The quantity on hand, value, and average cost for each product. Stock Valuation Detail: Your transactions for each stock item, and how they affect quan

Learn how to download your data from QuickBooks Online. There's a simple way to export your QuickBooks Online reports and lists. This means you can easily download the data entered into your file to your local hard drive. Export your reports and lists You can export the following reports and lists into individual Excel files contained in a zip format in one process: Reports: General Ledger, Profit and Loss, Balance Sheet, Trial Balance, Journal.Lists: Customers, Employees, Suppliers. To export your report or list: Select the Settings ⚙ icon from the tool bar. Under Tools, select Export Data. On the Reports tab, set the date range. Add or remove items from the Reports and Lists tabs by toggling the slider. Select Export to Excel. You'll be prompted with confirmation that the data has been exported. If you need to export a different report, here's how to export reports to Excel. Note: You can customise your report to export the data that matters to you mos

If part of the page in QuickBooks Online is cut off or there is no scroll bar to view the rest of the page from, here are a few areas to check: The browser's zoom settings Note: The zoom function can be easily activated without you getting any notifications. Mozilla Firefox If the page is bigger than the browser window, hold down the Ctrl key on your keyboard and the minus (-) key repeatedly to zoom out and make the page smaller. Ctrl and the plus (+) key will zoom in and make the page larger. If you have a wheel on your mouse, you can also hold the Ctrl key down then move the mouse wheel forward or back.This will work on any page that is either too big or too small, not just QuickBooks Online. Google Chrome On the upper right, select the menu icon (it looks like a three-dotted line). From the menu icon, locate the Zoom option. When you find that the page is bigger than the browser window, select the minus (-) icon to zoom out and make the page smaller or choose the plus (+) t

Learn how to reverse a journal entry to swap the debits and credits, or delete it entirely. You should only create journal entries as a last resort or with the help of your accountant. If you need to, you can reverse a journal entry to update and correct it. Or, if you created the entry by mistake, you can delete it. Reverse a journal entry If you need to allocate a transaction between two accounting periods or fix a debit and credit error, follow these steps. This simply reverses the debits and credits - it doesn't delete the original journal entry: Select Settings ⚙️ and then Chart of accounts. Find the account you created the journal entry for. Then select Account history. Find the journal entry in the account register. The word "Journal" should be in the Ref No. or Type column. Select the journal entry to expand the view. Then select Edit. Select Reverse. Select Save. When you reverse a journal entry, QuickBooks creates a new journa

Find out which default or special accounts can be deleted, edited, or merged in QuickBooks Online. When you create a company, QuickBooks Online creates specific accounts by default. Other special accounts are created when certain features are turned on in the settings. We’ll show you the accounts you can delete, edit, or merge. Looking to remove an account from your chart of accounts? See how to remove accounts you no longer use. Accounts that can’t be deactivated The following default accounts are created automatically. You can’t delete them or use them for any other purpose. Undeposited Funds (also called Payments to Deposit): When you record a payment to your company, the funds are added to this account until you deposit them into your bank account. Opening Balance Equity: This is the default account for adjustments. You can only edit the name of this account, if necessary. Retained Earnings: This account reports the net income of your company on the Balance Sheet report. You ca

Learn how to reorder anything that’s running low or out of stock. Stay ahead of back orders. Reorder stock and other supplies with QuickBooks Online. Then, track the items when they arrive to keep your stock up to date. Here's how. Step 1: Check if you have low stock or out of stock items Check for low stock or out of stock alerts, so you can prioritise ordering what you need the most. Go to Get paid & pay and select Products and services (Take me there). At the top, you’ll quickly see if you have low stock or out of stock items. Select Low stock or Out of stock to see those items. How QuickBooks knows what items are running low QuickBooks knows when something’s running low if it’s at or below its “reorder point,” or the threshold when you should reorder more stock. You can enter reorder points when you add new products. If your existing products don’t have reorder points, you can edit those products to add them. Step 2: Create and send a purchase order A purchase order is

Learn how to set budget targets for each class in QuickBooks Online Plus. New to class tracking? Classes represent meaningful segments in your company, like store departments or product lines. Check out our class tracking overview to learn if it’s the right tool for you and how to get started. If you track transactions by class, it’s easy to plan ahead for each segment. You can create a budget by class based on profit and loss from the last financial year. This helps you set more manageable budget targets for each part of your business. Then, you can run reports to see your progress toward your goal, so you can stay on track. We’ll show you how. Step 1: Review your profit and loss by class If you haven’t yet, check your profitability by class from your last financial year. Make sure the numbers are right. When you’re ready to add a budget, these figures will help you base your targets on last financial year’s financial performance. Go to Business overview, select Reports (Take me t

Learn how to record or pay back your employees' business-related expenses in QuickBooks Online. If they used their personal funds to pay a business expense, you can pay them now or record the expense first and pay them later. We'll show you how. Note: If you need to reimburse a contractor, make sure they're set up as a supplier. Then, you can add a bill and pay it. How to pay your employee now Select + New. Select Cheque or Expense. Select the Payee ▼ dropdown and find the name of your employee. Select the Category ▼ dropdown, then select a liability account. Note: If you don't have one yet, you can add a new account. Enter the other information: Amount: Enter the amount owed to your employee. (Break down the amount into different line items if tracking or making billable for multiple customers.) Billable: (Optional) Check the box under Billable if you wish to offset the expense onto your customer's invoice. Customer: (

You may incur bank charges when receiving payments from your customers. As a result, you may experience dilemma on how to record the bank charges. To record bank charges: Select + New. Select Journal Entry. Then, enter the Journal Date. Under the empty table enter the following double entries: First line, Account: Trade and other receivable / Accounts Payable, Credit: Amount, Name: Customer name Second line, Account: Bank charges expense account, Debit: Amount Select Save and Close. To settle the open invoice with the Journal Entry: Go to Bookkeeping, select Transactions, then select All Sales (Take me there). Locate the invoice which has incurred the bank charges. Select Receive payment on the top right of the invoice. Under the Receive payment page, tick to select the invoice and the Journal Entry (located at the second table below) Make sure the Amount received is the correct (total invoice amount - bank charges = Net amount received) Select Save

The first step to recording a loan for a customer is to determine the purpose of the loan: Are you going to use the loan to close all open invoices? Follow the steps here. Is the loan intended for other purposes (regardless of whether or not it is a customer) and you intend to write a cheque? Follow the steps here. Option 1: Loan to close all open invoices Step 1: Create an account to track the loan and its repayment Select the Gear icon at the top, then Chart of Accounts. From the upper left, select New. Set the Account Type to either Other Current Assets or Current Assets.Note: Create an Other Current Asset if the loan is to be repaid within the current financial year. Create an Other Asset if the loan will be repaid after the current financial year. Choose Loans to Others in the Detail Type drop-down. Add a recognisable name like "Customer Loan-Lastname". Select Save and close without entering an opening balance. Step 2: Create a journal entry This journal en

If you receive an advance payment from a customer, you can easily record this in QuickBooks Online using Receive Payment feature. The followings are some easy steps to follow: First, make sure you have the customer listed on QuickBooks Online. If you have already listed the customer on QuickBooks Online, then you can skip this step and continue to step 3. If not, go to Get paid & pay and select Customers (Take me there). Create a new customer by filling out all the information, then Save. Select + New. Select Receive Payment. Create a receive payment by select a customer using the dropdown arrow. Under the Account column, select the invoice, then enter the amount of payment received Select Save and New.

Learn how to record paying back a capital investment. After you record an investment, you may need to record paying yourself, partners or co-owners back at a later date. This is called a capital disbursement. Paying with an actual cheque If you’re going to send someone a paper cheque, follow these steps: Select + New. Select Cheque. Enter the person or business you’re paying back. For the Cheque no. enter a cheque number. Enter the following information in the Category Details section. First line: The equity account you use to track the investment in QuickBooks, and the amount you're paying back today. Second Line: Expense account you use to track the interest you pay, and the amount of interest that is part of your payment today. Other lines: Any additional fees and their appropriate accounts. Select Save and close. Paying with a debit or credit card If you’re paying someone back with a debit or credit card, you can record the repayment as an expe

In some instances, when previewing a transaction, such as an Invoice, Bill, Sales receipt, etc., the column headers for the form may be missing.  Frequently, this is caused by the colour scheme being too light for the background and foreground. This can be resolved by changing the colour choice for the column. Here's how to adjust the background colour of the column headers: Select + New. Select the form you want to adjust. Select Customise. Choose New style if you want to create a new style, or Edit current if you want to edit your current form. Select Splash on some colour.(Note: This option will appear as Try other colours if you've customised your forms previously.) Select Done.

Business owner often gives out a lot of freebies or free samples to attract customers. This can be tracked in QuickBooks Online using Stock Qty Adjustment feature. Here are some easy steps to record stock given to customers as free samples: Go to Get paid & pay and select Products and services (Take me there). Select an existing stock (or create a new stock). Select + New. Select Stock Qty Adjustment. Under the Stock adjustment account dropdown arrow, select then stock adjustment account. Under the Product column, enter quantity on hand (Note that QuickBooks Online will auto-calculate the change in quantity). Select Save. You can see the change in quantity on Product and Services tab.

Learn how to record a bounced or Non-Sufficient Funds (NSF) cheque using an invoice in QuickBooks Online. To record a bounced cheque using an invoice, you have to create two product or service items, and set one up to use a bank account and the other to use an income or expense account to track bank service charges. You then create an invoice for the bounced cheque and fees and record the bank service charge. Creating a new product or service called Bounced Cheque and linking it to the original bank account instead of an income account reverses the cheque in your bank register. When you create a new invoice for the fees the customer owes you and receive a new payment, a new deposit amount is created. We'll walk you through the process with these easy-to-follow steps. Step 1: Create two Service items The first step is to create Service items for the bounced cheque and fees. Select the Gear icon at the top. Under Lists, select Products and Services. Select New. In the Product/Servic

Learn how to enter your bounced cheques in QuickBooks Online. If a cheque you wrote bounces, you need to take care of the accounting in QuickBooks. A cheque bounces when your bank account has non-sufficient funds (NSF) or doesn’t have enough money to cover the cheque amount. When this happens, your bank charges you an NSF or bank fee. How you plan to handle the fees influences how to handle the accounting. Follow the steps based on how your cheque bounced. Scenario 1: Your cheque bounced, but your bank covered it and charged you a bank fee You only need to record the bank fee since your cheque was processed. To do this: Select + New. Select Expense. From the Payee ▼ dropdown menu: Select the supplier if the bank charged it to them. Select the bank if they charged it to your account. From the Payment account ▼ dropdown menu, select the account you use to pay expenses. To distinguish it from other expenses, enter “NSF fee” in the Ref no. f

Learn how to track the items that you’ve paid but haven't received yet in QuickBooks Online. You can record a payment to your supplier, without affecting the stock quantity on hand until you've received the items. The following steps work well if you don't want to see a credit in Accounts Payable or when you want to separate prepaid stock from the stock asset account. Step 1: Create a Purchase Order (PO) when the order is placed. Select + New. Select Purchase Order. Fill in the appropriate fields. Go to the Item details section, then enter the details of the product/service you are purchasing. Select Save. Step 2: Write a cheque to the supplier then categorise the payment under a prepaid stock account. Select + New. Select Check. Select the supplier. In the Category details section, choose another current account such as Prepaid Stock then enter the amount of your payment. Select Save. Step 3: When the stock is physically received, you c

If you earned interest, you can easily record it in QuickBooks Online using the Bank Deposit feature. You can track the interest from bank or savings accounts, investments, or interest payments to you on loans your business made. Here are a few simple steps to record your interest earning Go to Bookkeeping and select New to create a new interest account. Under the Account Type column, select Other Income. Under the Detail Type column, select Interest Earned. Under the name column, input any name which is applicable, then select Save and Close. Select + New. Select Bank Deposit. Under Add funds to this deposit, select the customer’s name who paid the interest, then select the interest account you just created. Enter a description, payment method and amount, then select Save and New. On the Dashboard, you can notice that the deposit has already been recorded under Bank accounts.

You can use Journal Entry to split the profit by different owner’s equity accounts. The steps are as below: Select + New. Select Journal Entry. Enter the entries as follow: Debit retained earnings Credit Owner’s equity account A Credit Owner’s equity account B Credit Owner’s equity account C Select Save. After that, run a Balance Sheet report to check the decrease in retained earnings and Increase in Owner’s equity for the different owners.    

Learn how to find payments you expect to see in the Bank Deposit window in QuickBooks Online. If you don’t see a payment in the Bank Deposit window, don’t worry. Before you make a bank deposit, make sure you put customer payments in your Undeposited Funds account. If payments are in Undeposited Funds, they automatically appear in the Bank Deposit window. Here’s how to track down and move payments to Undeposited Funds so they show up in your Bank Deposit window. Step 1: Review the payment If you don’t see a payment in the Bank Deposit window, retrace your steps. You may have put the payment into another account. Go to Bookkeeping, select Transactions, then select All Sales (Take me there). Find the invoice payment or sales receipt you’re looking for. If you use online banking and don’t see the payment here, make sure you’ve downloaded and categorised it. Select the transaction to open the form. Review the Deposit to field. Make sure you select Undeposited Funds. Select Save

You can depreciate an asset without the use of a Journal Entry. After creating a depreciation expense account, follow the steps below: At the end of the year when you or your accountant have calculated the depreciation amount, enter the transaction below: Select + New. Select Expense. Under Category Details, select Other Expense, then enter the depreciation amount in the Amount column. In the second line, select the asset account you are depreciating and enter the same amount in a negative figure. Select Save and Close.

It is common that for new businesses, the first financial year would last longer than 12 months. QuickBooks Online would automatically transfer the net profit and loss of the year to the Retained Earnings account, if the Balance Sheet is set with the start date to be on the 1st day of the financial year. For example, a business's financial year starts in January and ends in December. On the first year, the financial year spans 13 months so the first financial year ends in January of the following year instead of December. To capture 13 months’ worth of net profit in the Retained Earnings account, we'll need to transfer all the sales and expense incurred on this 13th month to the Retained Earnings account (the first 12 months would be auto captured by QuickBooks Online). We'll first have to tabulate the total sales and expense incurred on the 13th month by simply running the Profit & Loss report. Referring to this screenshot below, the date range is set as 1st Jan - 31st Jan. Make a

Currently, QuickBooks Online International version doesn't have payroll functionality inbuilt. As a workaround, journal entries are a good way to record the accounting information for your payroll. Below is an example of how to record a payroll journal entry transaction. Example: Fred's Residential Remodeling Company has five employees.  For the Journal entry, you would take the gross pay for the employees.  In this example, $4055.00 is the total amount. Select + New. Select  Journal Entry. Under Date, select the payroll payment(s) date. (Optional) Input Entry # for journal entry. Debit and Credit accounts: Debit expense account used to track gross wages. ($4,055.00) Debit expense account used to track Employer Contribution (e.g. CPF, EPF etc.). ($251.41) Credit Bank account payroll is deducted from. ($4306.41)Note: To make entry easier next time, the next two steps go over how to save the tran

Learn how to void a transaction in another period without deleting it in QuickBooks Online. Instead of removing the transaction, you can record a reversing entry to void a transaction in another period. You can restore the transaction without any problems since it's still on record. Follow the steps below to void transactions without deleting any of your records. Step 1: Void the transaction Print the transaction journal for reference Go to Business overview and select Reports (Take me there). Select Transaction List by Date. For Report period, select All Dates, then select Run report. From the transaction list, select the transaction you want to void. Select More, then select Transaction journal from the pop-up menu. Select the Print (printer) icon to get to the Print page. Select Print. This will serve as your reference. Create a reversing Journal entry to void a transaction Select + New. Select Journal Entry. In the Journal date field, enter the