Business Efficiency & Process Optimization Consultant 
How to Add Cash and Check Receipts

Undeposited Funds in Your Software

The physical deposit

I have reviewed many accounting files and one task that most business owners get hung up on is how to undeposited funds. So, I would like to share this bookkeeping tip cash and check receipts. Although merchant accounts are very popular, we are still receiving cash and checks for payments.  We must deposit cash into the bank at the bank or ATM.   We have the option to mobile deposit checks.  When we deposit technically, we should use a “deposit slip” but most banks do not require a deposit slip these days, so some payments go without matching the invoice.  A couple of steps will help with the backup of payments.  

Bookkeeping Tip: Handling Cash and Check Receipts in Accounting Software.

Post to Your Accounting Software (I am using Zoho Books for example but this works with most major accounting software.)

We will look at how to reflect a bulk deposit into your accounting software.

Once you receive the cash or check payment.

Cash
Check

If you did not receive to un-deposited funds then you will see the payment in the window to the right but ensure you match to “Customer Payment” not “Invoice.”  Ensure you are matching the correct payment and invoice.

Example Workflow

Step 5- Move from undeposited funds to the bank because this is the account the payment was received. You will move the deposit as a lump sum deposit to reflect the group deposit to the bank. The purpose of undeposited funds is to group payments received but not yet deposited. Later when the lump sum deposit downloads you do not have to guess the payments received because you waited for the bank to post the deposit. If you do not use undeposited funds you would use a deposit slip showing the invoices that received payment. But you will need to enter the payments into the accounting software. Automatic payments for your invoices from your clients (your sales) only occur when paid via a merchant account.

Example 2 Workflow

Related Blogs

Review this blog for banking transaction examples: Accounting Software Expectations P1

Bill Payment "automation" and what it really means to automate: Automatic Bill Payments

Accounting and business process optimization part 1 getting started: Accounting and Business Process Optimization Part 1

Leave a Reply

Your email address will not be published.

error

Enjoy this blog? Please spread the word :)