G11. How do I reconcile my Quickbooks deposits? How do I match payments to the bank deposits?

G11. How do I reconcile my Quickbooks deposits? How do I match payments to the bank deposits?

How do I reconcile my Quickbooks deposits? How do I match payments to the bank deposits?

Answer

By applying some knowledge of the standard deposit timelines of different payment types, we can breakdown a deposit into it’s component payments pretty quickly.

The standard deposit timelines are as follows:

  • Visa/MC/Discover – These transactions are deposited together, generally 2 business days after they were initiated. The deposit descriptor will vary depending on the Visa/MasterCard/Discover processing bank with whom your account is housed.
  • American Express – In most cases, Amex deposits come on their own, directly from Amex and are deposited 3 days after they were initiated, unless that day is a Sunday.
  • ACH – Deposit timelines for these transactions are 3-5 business days. Most transactions will deposit to your account 3 days after they were initiated and have a US Bank descriptor on the deposit entry.

 

To give an example of how to reconcile consider this scenario. Say on 3/9 you ran the seven transactions below.

MasterCard – $500

Discover – $150

Visa – $200

Visa- $350

Amex – $1250

E-Check (ACH) – $400

E-Check (ACH) – $250

What you will see in your bank account will be 3 deposits.

 

A Clearent deposit on 3/11 for $1200 = (500+150+200+350)

An Amex deposit on 3/11 or 3/12 for $1250

A deposit from “ACH Settlement” for $650 on either 3/12 or 3/13 = (400+250)

 

In your “Record Deposits” window in QB, you should have 7 payments from 3/9, each with it’s own CB reference number and each showing the payment method used. To reconcile the Clearent deposit for $1200, you would check the box to select the four V/MC/Dis payments, and you would see they total $1200. At which point you save the deposit. Follow the same for the payment of type Amex, then the two payments of type “E-Check”.

 

After doing this process a few times, it becomes second nature to correlate the date and description of who made the deposit in your bank account ledger. You will be able to tell which payments are included in that deposit, and are showing on your “Record Deposits” page in Quickbooks.