Mastering Deposit Splits in QuickBooks Online: A Guide to Streamlined Financial Management

For small business owners, managing finances can often feel overwhelming. Thankfully, QuickBooks Online is designed to simplify the process. One valuable feature that often goes underutilized is the ability to split a deposit. Whether you’re receiving payments that need to be divided among different accounts or want to accurately reflect both invoiced and non-invoiced revenue, knowing how to split a deposit can streamline your accounting process and keep your financials in order.

Why Split a Deposit?

Splitting deposits in QuickBooks Online allows you to allocate a single bank deposit across multiple accounts or transactions. This not only ensures that your financial records are accurate but also saves you time when reconciling your accounts. With clear records, you can make data-driven decisions without the headache of correcting errors later on.

1. Splitting a Deposit Between Multiple Accounts

Receiving a single deposit that needs to be divided among different accounts? No problem! Follow these straightforward steps:

  1. Navigate to the Banking menu and select the account associated with the deposit.
  2. In the For Review tab, locate the deposit transaction you need to split, then click on it.
  3. Click the Split button to begin.
  4. Add lines for each portion of the deposit, being sure to specify the amount, payee, and appropriate category for each entry.
  5. Once all details are entered, click Apply and accept.

This method guarantees that each part of the deposit is categorized correctly, leading to more accurate financial reporting.

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

If your deposit consists of both payments for invoices and other types of income (for example, rental income that doesn't have an invoice), here’s how you handle it:

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

Doing this ensures that both invoiced and non-invoiced revenues are properly recorded in your financial system, which is essential for accurate forecasting and reporting.

3. Splitting a Deposit Between Different Classes or Divisions

If your business operates across multiple classes or divisions and you need to split the deposit accordingly, follow these steps:

  1. Start by making sure that Class Tracking is enabled in your QuickBooks Online settings.
  2. Select + New and then Bank Deposit.
  3. In the Add funds to this deposit section, enter each portion of the deposit on separate lines.
  4. For each line, select the appropriate class or division from the Class dropdown menu.
  5. Input the corresponding amounts for each class or division.
  6. Finally, save the deposit.

By accurately tracking income across different segments, you can analyze performance and make more informed strategic decisions.

Final Thoughts

By following these steps, you’ll become a pro at splitting deposits in QuickBooks Online. Not only does this feature ensure precise financial reporting and management, but it also saves you precious time—time that you can devote to growing your business. Remember, effective financial management is key to the successful operation of your small business, and QuickBooks provides an array of tools to help you achieve that. Embrace these features, and watch your business flourish!