Hi everyone. As some of you may know, I have spent the past couple of years building a library of 60+ free QuickBooks Online tutorials. I noticed that most of my tutorials related to entering income in QuickBooks or cover how to enter invoices. What about those of you who don’t invoice customers? Yes, there are many businesses who don’t invoice customers – eCommerce, restaurants, medical, veterinarians, chiropractors, salons, spas, and more. Don’t worry – I didn’t forget you all. In fact, I’m going to share with you my secret method for how to record daily sales in QuickBooks Online.
I recently consulted with Mary, an owner of a beauty salon. Mary is a loyal reader of our blog and contacted me for help. As it turns out, she was recording a sales receipt for every service that she provided to her clients. While this seems like the right thing to do – it takes too long! Mary already has a point of sale system separate from QuickBooks – therefore she can save time by entering what we call “daily sales” in QuickBooks Online.
What kind of companies should record daily sales in QuickBooks Online?
Any company that does not invoice customers for products and services can use the daily sales method to record sales. These companies typically have a “point of sale system” separate from QBO, such as:
- Medical offices
- Salons, spas, and massage therapists
Some eCommerce companies may also be able to use the daily sales method – depending on how they sell their products and track inventory.
Daily sales versus invoices or sales receipts
When I refer to recording “daily sales” – it means that all the sales income for 1 day is recorded in QuickBooks as opposed to recording each individual sale with an invoice or sales receipt. That’s because your point of sale system can easily provide you with the totals for the day.
Here is an info-graphic:
How to set up daily sales in QuickBooks Online
Let’s go over how to set up things so that you can enter daily sales in QuickBooks Online. Watch this video for an explanation and follow along in the step by step tutorial below.
Set up accounts in the Chart of Accounts
You should have the following accounts set up in the chart of accounts.
Here is an example of an account set up in the Chart of Accounts:
FYI – The “Daily Sales” account will always have a $0 balance. We will be using this account as a “clearing” account – meaning that the account will have a zero balance.
Set up items in the Products & Services List
You’ll need to set up the following items in the Products & Services list:
Here is an example of how an item should be set up in the Products & Services List:
Be sure that you have set up the accounts in the chart of accounts before you set up the items in the Products & Services list.
Tip – You can set up a Category called “Daily Sales” to group your items together in the Products & Services list.
How to enter daily sales using a sales receipt
You will need to get your daily sales totals from your point of sale system. It should show the sales, sales tax, and amounts collected for each day.
Follow along with this example:
1 – Set up a customer called “Daily Sales”
2 – Enter the date of the sale
3 – Set up a payment method called “Daily Sales”
4 – Enter the “Daily Sales” account you set up earlier in the chart of accounts
5 – Enter total sales income from a daily sales report from your Point of Sales (POS) system
6 – Enter the sales tax from a daily sales report from your POS system
7 – Enter the amount received from VISA/MC/AMEX (enter as a negative number)
8 and 9 – Enter each check received separately – including the check # and the name of the customer (enter as a negative number)
10 – Enter the amount of cash received (enter as a negative number)
11 – The total amount of the sales receipt must equal 0
Save and close when done.
NOTE: In my example below, I am assuming that you receive one payment for VISA/MC/AMEX per day. It is possible that you receive a payment from VISA/MC and a separate one from AMEX. If that is the case, enter these amounts separately.
Record deposits received
Now, we need to tell QuickBooks when we received the funds we recorded to the Undeposited Funds. This is an important step that you need to complete. That’s because we want to be able to match up the amounts received to what is being shown on your bank statement (so your banking transactions will “Match”).
From the Plus sign, select Bank Deposit.
You’ll record a deposit for VISA/MC/AMEX as you receive payments from your merchant service.
You’ll also record deposits for checks as you deposit them into your bank account.
1 – This is the bank where the funds were deposited
2 – This is the date the funds were received
3 – This is the amount you entered in the Sales Receipt for VISA/MC/AMEX
4 and 5 – These are the amounts you entered in the Sales Receipt for checks received
Example of recording a deposit for checks received
Check the boxes next to the checks deposited at the bank.
Make sure that the total amount of the deposit equals to the amount deposited at the bank.
Save and Close when done.
Example of recording a deposit for funds received from your merchant service
You’ll need to look on your online banking activity to see when you receive funds from your merchant service for VISA/MC/AMEX.
Check the box(es) next to the amounts received via VISA/MC/AMEX.
Make sure that the total amount of the deposit equals to the amount received in your bank account.
Save and Close when done.
Example of recording a deposit for funds received from your merchant service (minus merchant fees or other deductions)
In some cases, some merchant services deduct their fee from each transaction. In this case, you need to deduct the fee from the deposit.
Let’s assume that the sales receipt shows $525 collected on VISA/MC/AMEX but that your merchant service deducted $25 in fees. That means that you received only $499.50.
1 – Check the box(es) next to the amounts received via VISA/MC/AMEX.
2 – Scroll down and enter a deduction of $25. Enter “Daily Sales” under Received From. For the account – choose “Merchant fee expense” (you may already have another account set up for merchant fee expenses). Enter the amount as a negative number.
3 – Make sure that the total amount of the deposit equals to the amount received in your bank account.
Save and Close when done.
Example of deposit recorded being “Matched” in the Banking transactions
Let’s take our prior example where you entered a deposit for $499.50.
Now we’ll go to Transactions > Banking and find a “Match” transaction. QBO will match the amount downloaded to the amount already entered in QuickBooks.
And we’re done! You’ve just learned how to record daily sales in QuickBooks Online. Let me know in the comments if you are using this method or what you’re using instead. Have a great week!