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How to record daily sales in QuickBooks Online

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Text Comments (78)
Following you instruction, my cash deposit is sitting in Cash on Hand versus my bank account and will not match. Please help!
Robin Anderson (27 days ago)
My credit card deposits do not always match what is deposited for that day. They come in different batches. How can I only deposit the amount to match the deposit in the bank? ie Received $328.00 but $110.91 was deposited today and $217.09 was deposited tomorrow.
5MinuteBookkeeping.com (17 days ago)
+Jennine Morel You're welcome! I'm glad that you found this helpful.
Jennine Morel (18 days ago)
+5MinuteBookkeeping.com - thank you so much for your assistance with this. This has been a troubling area for a very long time for me. I have spoken to many accounting professionals about this and had a lot of conflicting information.
5MinuteBookkeeping.com (27 days ago)
For Square Transactions, you can use a clearing account. Instead of recording deposits directly to the bank account, you record them to a clearing account (a "Bank" Type account). You record the Square fees to the clearing account too. Then you record a transfer from the clearing account to the bank account for the amount that was actually received in the bank account. The clearing account should 0 out if everything was entered correctly.
Jennine Morel (27 days ago)
I have a similar issue with Square Transactions. What is done in Daily Sales never matches to what is deposited into the bank.
5MinuteBookkeeping.com (27 days ago)
This is a great question. In fact, I was just helping a client to do this very thing. One way to do this is to record the amounts to Cash on Hand. Then, you record a transfer in QBO from Cash on Hand to your Bank Account. Example, record $328 to Cash On Hand. Record a transfer from Cash On Hand to Checking account for $110.91 today. Record a transfers from Cash On Hand to Checking account for $217.09 tomorrow. Then you will be able to match the amounts deposited in the bank.
Sreekanth Babu (1 month ago)
Thank you for this video! I have some difficulty in Value Added Tax return when I follow this method. In Taxes link, Purchase tax is shown correctly under "paid on purchases" but Sales tax is not there in "collected on sales". Its shown separately in the account I created to follow this method. Can you please explain how to solve this issue?
Gregg (1 month ago)
I have been using this system for about six months after watching your video, it's great thank you! One question I have is, do I enter my sales tax payments as expenses and have them post to the sales tax liability account?
5MinuteBookkeeping.com (1 month ago)
You're welcome. When you pay the sales tax, you can enter as an Expense and post it to the sales tax liability account (should be the same account where the sales tax liability is being accumulated from the Sales Receipts).
fatima-zahra mouttaki (1 month ago)
Thank you a lot for the video, very helpful!! but i have a problem with tax, sales taxes are not cumulated in the system tax account (where we can see how much we have to pay for tax and make payment), and I can't use this account (I mean the system account) to create sales tax product. So after making daily sales, taxes are cumulated in another account sales tax liability, and I don't know how to transfer to the system account
fatima-zahra mouttaki (1 month ago)
5MinuteBookkeeping.com  thank you for your prompt relply
5MinuteBookkeeping.com (1 month ago)
With the method we are showing, you are not able to track sales tax in the sales tax center. You would track them separately from sales tax collected from other types of sales.
Krista S. Gramens (2 months ago)
Thank you for this. Is there a good way to account for daily credit card tips for a restaurant? How about COGS?
Jennine Morel (27 days ago)
You can do this on a sales receipt as well or do a journal entry. You have to create a line item for everything
Veronica Wasek (2 months ago)
Hi. I don't work specifically with restaurants but here are some resources that might be helpful https://community.intuit.com/articles/1145284-record-a-tip-or-gratuity-in-quickbooks-online and https://www.accountexnetwork.com/blog/2017/04/accounting-payroll-issues-restaurant-tips-service-charges/2/
Tons of these UI items are very difficult to find -- can you please specify? Even "Chart of Accounts" is no where to be found from the dashboard.
5MinuteBookkeeping.com (2 months ago)
Hi. If you are trying to record daily sales in QuickBooks and are not familiar with the Chart of Accounts or other QBO functionality, you should probably become familiar with the basic functionality of QBO before jumping into more complex things like recording daily sales. You can access the chart of accounts from the left navigation bar > Accounting. You can access the Products and Services list from the Gear icon in the upper right hand side > Products and Services.
marjorlie lambayan (2 months ago)
Hi Veronica. I have a client that is a year behind of his books. I am going to enter his sales and he wanted me to enter it as monthly sales, I followed your instruction but instead of putting monthly sales to chart of accounts, I put his monthly income directly to his chequing account, I am aware this will create complications in reconciling bank statement, but that is my concern, his bank can only provide bank statements past 18 months, I don't have his statements from January to March, is there anything that you can suggest on how to enter monthly sales for January-March? Thank you
5MinuteBookkeeping.com (2 months ago)
It would be very difficult to record income without the bank statements. I'm sure that the client can request older bank statements from the bank - they would have to pay to do that, though. If you can't get the statements, perhaps the client can estimate what the sales were in those months. However, I would not recommend doing this unless you absolutely can't get the bank statements.
Eric Tang (3 months ago)
What if I have a refund? how should I record the refund form the sales?
5MinuteBookkeeping.com (3 months ago)
You would add an item to the Products and Services list for a Refund and map it to the Refund account (Income type account). Then you would enter the amount of the refund in the sales receipt using the Refund item.
Kapil Singh Joula (4 months ago)
i want to proper learn to this , please give me a suggestion .....
Goodwill Learning World (4 months ago)
what do you want to learn???
5MinuteBookkeeping.com (4 months ago)
Hi. I you want to properly learn QuickBooks Online, check out our free QuickBooks Online training at https://5minutebookkeeping.com/quickbooks-online-tutorials/ and also check out our 5MB Academy at https://5mbacademy.teachable.com/courses?preview=logged_out
Andrea Aubin (4 months ago)
Thank you for this great video! A quick question though, with this method, how would you then convert the inventory to COGS?
Veronica Wasek (4 months ago)
You wouldn't. This is not an entry to record inventory. That would be a separate entry that should be customized based on your specific business and the reports available to get inventory totals.
Jeffrey Thurgood (5 months ago)
I've been using this system for a while now. Why do these sales not show up in QBOs "Sales" reports? Why do they not show up on "Income" reports? I need my daily sales tracked correctly as income.
Veronica Wasek (5 months ago)
They should show up on the Profit & Loss report if you've correctly mapped the items in the Products and Services list to "Income" type items. They may not show up in other sales reports if those reports are pulling sales by customer.
Martin Raynor (6 months ago)
I am using Quickbooks essentials. I followed your each step. However, My deposit screens are missing column "type" Sales Receipt. Instead it is showing account . So, am I missing something? Thanks.
Veronica Wasek (6 months ago)
Hi Martin. Since I can't see what you are referring to specifically, it sounds like you are referring to the Bank Deposit window. It also sounds like you are looking at the section called "Add funds to this deposit" instead of the section called "Select the payments included in this deposit" (formerly called "Select Existing Payments"). Perhaps that section is collapsed in your Bank Deposit window? If you used the Undeposited Funds account as described in the video, then the entries will show up in the "Select the payments included in this deposit" section.
Jeffrey Thurgood (6 months ago)
This is insanely tedious and stupid. Using Excel and just entering the date and the daily sales was WAYYYY easier. Why did I pay for quickbooks?! I thought this program was supposed to make my accounting more SIMPLE.
5MinuteBookkeeping.com (27 days ago)
I'm glad it's helping you!
Kari Hultman (1 month ago)
This video is excellent. Thank you so much.
Jeffrey Thurgood (6 months ago)
Veronica Wasek but why not just allow me to enter my daily sales and a date? What is the purpose of all the double entries and repetetive account selection? None. There is no purpose.
Veronica Wasek (6 months ago)
I'm sorry if QuickBooks is more complicated than you thought. Perhaps you can give feedback directly to QuickBooks about this. If using spreadsheets is simpler for you, you may want to keep using them. QuickBooks is an accounting software and although it is simpler than most accounting software, it's still a full accounting system and it takes time to set it up correctly and to learn it.
Thank you so much for this video! I am working with my first bookkeeping client and am struggling! I know understand daily sales due to this video, I will be searching out your other videos for sure!!
5MinuteBookkeeping.com (8 months ago)
You are welcome! Be sure to check out the other videos and 50+ free QBO tutorials on my blog at https://5MinuteBookkeeping.com. Also join my Facebook group so you can be part of our community https://www.facebook.com/groups/5minutebookkeeping/
Tom Hanwinyoo (8 months ago)
Thanks for making it look easy. However, for a small restaurant business somehow I think using Excel is a lot easier (and I'm not even an expert in Excel). I can't seem to find advantage of using QBO (yet).
5MinuteBookkeeping.com (8 months ago)
You're welcome! I'm glad that Excel is working for you. You may need QBO in the future as your restaurant grows or if you want to hire a bookkeeper to do your books.
K-9 State Of Mind (8 months ago)
Thank You so much for making video! This helped sooo much!
5MinuteBookkeeping.com (8 months ago)
So glad it was helpful!
Marta Acree (9 months ago)
Hi! I am a relatively new business owner. I acquired an existing business in April 2017 and hired a bookkeeping service to help set up my QBO and focus on all the maintenance tasks while I focused on expense entries. Long story short I found a lot of errors and or inconsistencies in the chart of the accounts and we are parting ways. In the meantime, I am trying to figure out how to fix things and establish better practices for 2018 and beyond. One of the inconsistencies was the use of daily journals to record sales and cash over/short. I provided reports for them to use. For the first 80 days, a daily journal was recorded (April - June). Then they stopped. A couple of "monthly" journals were created after that, then <nothing>. So, given the long preamble, my main questions are these: a) If I created monthly journals to cover the rest of 2017 and then started using the method in your video for 2018 would things be "ok" ? b) Or will that just confuse the situation further? c) Or should I just blow away the existing journals and start over? [ There are approved tools to export /delete/import transaction via spreadsheets are tempting me to start over ... but I could just be digging a deeper hole].
5MinuteBookkeeping.com (9 months ago)
Hi. I see that you set up a discovery meeting with me. I'll provide a general answer to your question here. I don't like doing monthly entries because it is harder to reconcile monthly entries and it ends up taking up more time.
dean kaltsas (9 months ago)
That I understand but in your way how do you deposit the full amount in the undeposited category.... The numbers won't match
dean kaltsas (9 months ago)
great video, question: when you recieve credit card money there is usually the fees they take out before the deposit. how can you record that? add a bank expense?
5MinuteBookkeeping.com (9 months ago)
Great question. Credit card fees are reductions of income and can be recorded to a Merchant Fees expense account .
Kashif Gilani (9 months ago)
Very helpful video. I have followed your steps but I am running into a problem. My Profit/Loss report does not show income broken down as Cash/Credit etc. All it shows is one entry of 'Sales Income'. I need to see the sales broken down into type of sales in the Profit/Loss statement.
5MinuteBookkeeping.com (9 months ago)
Here is the link for the chart of accounts tutorial https://5minutebookkeeping.com/quickbooks-online-chart-of-accounts-tutorial/ Here is the link to the products and services list tutorial https://5minutebookkeeping.com/how-to-set-up-products-and-services-list-in-qbo/
Kashif Gilani (9 months ago)
Thank you for the reply! The link is broken. So, there will essentially be two entries for each type of sales category. One positive and one negative?
5MinuteBookkeeping.com (9 months ago)
Hi. I'm glad you found the video helpful. If you want to break down your sales income into categories other than "Sales Income", you need to add the income accounts to the chart of accounts (see https://5minutebookkeeping.com/quickbooks-online-chart-of-accounts-tutorial/). Then, you need to change the Income account used to map your items in the Products and Services list. Here is a link explaining how to work with the Products and Services List https://5minutebookkeeping.com/how-to-set-up-products-and-services-list-in-qbo/
Shan Janjua (9 months ago)
How would you enter non-cash tips made through visa/amex/mc/disc?
5MinuteBookkeeping.com (9 months ago)
Hi. That's getting outside of my area of expertise. I encourage you to check out these resources for restaurants at http://slbyrnecpa.com/restaurantaccounting.php.
Chris Smith (9 months ago)
Is there a difference / advantage to using this method vs a journal entry?
Jeffrey Thurgood (6 months ago)
What?!
5MinuteBookkeeping.com (9 months ago)
Great question! Yes, there is a difference. QuickBooks reports on an accrual basis or a cash basis. If you use a journal entry, the activity recorded will show up in Income for both accrual and cash basis. As a result, if you file a tax return on a cash basis, you may be overstating your credit card sales for up to 2 days (from the time you record them in QB until you receive the funds in your bank account).
Adi Dharam Bertacchi (10 months ago)
Hello. Thanks for your Video it was really helpful. Regarding gift cards, can I ask you how can i manage them? How can i set up my QBO in order to process them within the daily receipt sistem?
5MinuteBookkeeping.com (10 months ago)
Hi. Glad you found the video helpful. Join my Facebook group to ask questions at https://www.facebook.com/groups/5minutebookkeeping/
Stacy Hickman (10 months ago)
Why do you add cash to "cash on hand" vs undeposited funds if the cash money will be going to the bank too.
5MinuteBookkeeping.com (10 months ago)
That's because you may not deposit all of the cash into the bank. You can use Undeposited Funds if you'll deposit all of the cash received.
Stacy Hickman (10 months ago)
Why are the items list all set up as service items....could they be payments?
Jennine Morel (27 days ago)
QBO does not offer a "payment" item type
Agreed.
5MinuteBookkeeping.com (10 months ago)
You can, these would be set up in the chart of accounts as "Other Current Asset". Alternately, you could track them in Accounts Receivable - but that might be too much work.
Stacy Hickman (10 months ago)
can I also set up “Charge on Account” and “Received on Account” as items under daily sales? We act as the “bank” until paid and our in house POS system keeps up with invoices. The problem I keep having is payments are intermingled between sales and charges and received on accounts.
5MinuteBookkeeping.com (10 months ago)
There are only 4 item types - inventory, non-inventory, service, and bundles. I used inventory in the example. You can also use non-inventory. There are no "payment" items in the products & services list.
Will L (11 months ago)
This video is outstanding! It's the most comprehensive and easy to understand video on the subject. Thank you, thank you, thank you!
5MinuteBookkeeping.com (11 months ago)
You are welcome!
This one is rather easiest and best video explaining daily sales for a retailer. Only missing part in above video is "Cash on Hand". How does it make it's way to QBO/Bank once deposited? As you have explained for Merchant settlement and Cheques, I would expect you to add that Cash part as well to the bank. Thanks.
YAS (9 months ago)
Yes i am struggling with that as well, except i don't do daily sales rather sales receipt basis. would like to see it
Muhammad Rizwan (1 year ago)
Can you please also show us how to book inventory or non-inventory purchases for restaurant and month end adjusting entries
Hi. That's a great question. For restaurants, you don't track inventory using inventory items in QBO. You simply use an "Inventory" (current asset) account and adjust the balance each month to the new inventory total. The difference goes to Cost of Goods Sold. If you need more help, I suggest that you contact your accountant or a QuickBooks ProAdvisor who specializes in restaurants.
MTAM Service (1 year ago)
I really appreciated your video. I use a rather robust POS system and have create the QBO to record my sales once a month rather than daily. However, this creates an issue of deposits made during the month for sales that will be recorded in the future in quickbooks. I think I have all the proper accounts set up, but I can't seem to get every thing organized. Any recommendations would be appreciated. Thanks again for a very professional presentation.
Karin Wagar (1 year ago)
Hi Veronika, thank you so much for this video, it is so very helpful! What do you do when an amount on the bank feed does not match the daily sale amount for ach or credit card transactions when you go in to reconcile? This happens to me quite a bit and the point of sales support said it is because of bounced card or online payments. What is the best way to make the adjustment?
Hi Karin. You would have to adjust the daily sale amount on the sales receipt. It would depend on what is causing the difference - like a bounced card, for example. For a bounced card, you would have to decrease the amount of sales income and the amount recorded to the bank account.
Kevin (1 year ago)
How can I handle Gift Cards? I sell gift cards and redeem gift cards, what type of account would that be in the COA, an income account?
Adi Dharam Bertacchi (10 months ago)
Hello. Thanks for your Video it was really helpful. Regarding gift cards, can I ask you how can i manage them? How can i set up my QBO in order to process the?
It depends on whether you are using the cash basis or accrual basis of accounting. For cash basis - it is income. For accrual basis - it is considered deferred income (an other current liability account in QB).

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