QuickBooks Online has revolutionized the accounting industry with its new feature of accepting negative dollar amounts for deposits. This feature has proved to be a blessing in disguise for businesses with storefronts, restaurants, and e-commerce sites. In this blog post, we will dive deep into how negative deposits in QBO can be beneficial for your business and simplify your accounting process.
Understanding Negative Deposits in QBO
First things first, what exactly are negative deposits? A negative deposit is a term used when refunds exceed sales in a single day. This type of deposit can be inputted directly on the QuickBooks deposit screen or through journal entries. The bank feeds can track these transactions and allow for easy matching. So now with QuickBooks Online’s new negative deposit feature, this process has become instantaneous and hassle-free.
Benefits of Negative Deposits for Businesses
Negative deposits are a simple way to keep your accounting process accurate by accounting for refunds and expenses. This will save time and ensures that books are maintained properly. Apart from this, the negative deposits can also affect your business’s tax liability by reducing your sale and increasing returns and allowances, which eventually helps in saving money on taxes.
How to Record Negative Deposits in QBO
Recording negative deposits is a piece of cake with QuickBooks Online. You can record them using an adjusted journal entry, or by simply making a deposit. This is the key is to ensure that your refunds and expenses are accurately recorded to avoid any discrepancies.
Inputting Into QuickBooks
One way to look at this in QuickBooks is a journal entry. This is where you put in all the details associated with that days’ worth of summary activity. Also if you chose to do it this way you can see a detailed report.
The other option that you could do is go over to your deposit screen and just post the negative deposit.
The result is that either way you report the negative deposit, you will be able to go over to bank feeds and see the entry that has already been created for the negative deposit and then be able to match to that transaction. QuickBooks Online’s ability to accept negative dollar amounts for deposits is a game-changer for businesses that experience more refunds than sales. By accurately recording negative deposits, you can simplify your accounting process, save money on taxes, and ensure that your books are accurate. So, what are you waiting for? Try out this new feature today and experience a hassle-free accounting experience!