QuickBooks Online offers a useful feature that many users overlook: the ability to split a deposit. If you receive payments that should be distributed between different accounts or need to account for both invoiced and non-invoiced revenue, knowing how to split a deposit can enhance your accounting workflow and ensure your financial records are accurate.

Why Split a Deposit?

Splitting deposits helps you divide a single bank deposit among multiple accounts or transactions. This practice keeps your financial records precise. It also makes it easier to reconcile your accounts. When your records are clear, you can find and fix errors quickly. This way, you avoid stress later when making decisions based on your financial data.

1. How to Split a Deposit Between Multiple Accounts

If you have a single deposit that must be divided among different accounts, follow these steps:

  1. Go to the Banking menu and select the account for the deposit.
  2. In the For Review tab, find the deposit transaction and click on it.
  3. Click the Split button to start.
  4. Enter details for each part of the deposit. Specify the amount, payee, and category for each entry.
  5. Once finished, click Apply and accept.

By categorizing each part of the deposit properly, your financial reporting will be more accurate.

2. Splitting a Deposit for Invoiced and Non-Invoiced Revenue

If a deposit includes payments for invoices along with other income (like rental payments that aren't invoiced), follow these steps:

  1. Click the + New button and select Bank Deposit.
  2. In the Received From column, choose the customer linked to the invoiced payment.
  3. In the Account column, select Accounts Receivable and enter the invoiced amount.
  4. Add another line for the income not tied to an invoice. Choose the income account and enter the amount.
  5. Save the deposit.
  6. To link the deposit to the invoice, go to the Sales menu, find the invoice, and select Receive Payment. In the Outstanding Transactions section, choose the invoice and apply the deposit.

This process ensures that both types of revenue are accurately recorded, which is critical for effective forecasting and reporting.

3. Splitting a Deposit Between Different Classes or Divisions

If your business runs specific classes or divisions and you need to split the deposit by these categories, use the following steps:

  1. Make sure Class Tracking is enabled in QuickBooks Online settings.
  2. Select + New and then Bank Deposit.
  3. In the Add funds to this deposit section, enter each section of the deposit on different lines.
  4. For each line, choose the right class or division from the Class dropdown.
  5. Enter the amounts corresponding to each class or division.
  6. Save the deposit when done.

This accurate tracking of income across segments allows you to analyze performance better and make smarter strategic choices.

Final Thoughts

With these steps, you'll become proficient at splitting deposits in QuickBooks Online. This feature not only ensures your financial reporting is accurate but also saves time, allowing you to focus on growing your business. Effective financial management is essential for any small business, and QuickBooks offers various tools to help you accomplish that. Utilize these features to see your business thrive.