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Working With Bank Accounts

Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.

  • Intro 0:00
  • Writing a QuickBooks Check 0:30
    • Amount field
    • Other fields
    • Print check
  • Using Bank Account Register 7:40
  • Entering a Handwritten Check 9:45
  • Transferring Money Between Accounts 16:33
    • Funds Transfer Option
    • Transfer with Check Register
  • Marking Cleared Transactions 20:57
    • Bank Statement
    • Reconciliation Summary
  • Viewing Cleared Checks in the Register 27:05
    • Searching for Specific Check Amount

Transcription: Working With Bank Accounts

Welcome back 0001

We are going to go through the lesson of working with bank accounts.0003

And we are going to teach you how to write a check.0007

And using QuickBooks we are going to teach you how to use the bank account registers.0009

And opening up a register out to enter handwritten checks.0014

And also transferring money between accounts as well as marking clear transactions.0020

And viewing the clear checks and the register.0025

So, in QuickBooks. We are going to go ahead with your QuickBooks open in the sample file.0030

We are going to go ahead and look at the various ways that we can open up your checkbook register and how to write a check.0039

Now, of course, in transactions as I have stated before in other lessons.0048

Everything we do has a financial consequence or a financial transaction attached to it.0052

Every time we drive our vehicle we are using money or gas.0059

Every time we go to the store we have to buy something.0064

We are always doing something on our live that actually has a financial consequence to it.0067

So, with that, QuickBooks helps us to organize it and we are going to use the check writing ability.0074

Checks you can actually purchase. Laser checks and print checks directly from your QuickBooks system.0081

And that is what we are going to show you how to do now.0088

Assuming, that you have checks that can be printed in your printer.0090

So, using the home screen. You can always click on your home screen.0095

And with your home screen you can enter checks that way.0100

You are going to go right into the icon that says write checks.0108

Or you can go up to the banking menu bar and click on write checks.0113

Or from the icon menu you can click on the icon that says check.0120

And as you put your cursor over the icon it comes up write checks.0126

So, we will go ahead and click on that and that it is going to open up a window of writing checks.0131

You will notice that the very first upper left hand corner it is going to show you the default bank account.0138

We can change the bank account if we have multiple checking accounts.0144

Some businesses might have a checking account dedicated for payroll.0149

Some have one just for operating expense and payroll or other uses.0153

In this particular case we only have one checking account.0158

So we are going to leave that as is.0162

It will always show you according to your register what the ending balance is.0164

So that before you write your check you want to make sure you have enough funds to cover it.0168

So, we will see that and we will also notice that we have a couple of options.0173

This does look like a regular check here in the field and just below that we have a couple of options.0180

We can say it is an online payment or to be printed.0186

So, we are going to make sure that to be printed is marked.0191

That means we are writing a check in the system and we are going to print it on a check stock later.0194

So, the first thing we will do is we are going to go ahead and pay a telephone bill.0201

So, we are going to assume that we are going to pay Cal telephone let us say.0208

OK? And it is already in our vendor list.0214

So, once we type in Cal T it prefills it, auto fills it for us and we can hit tab.0217

It is going to say that there are some open bills for this vendor.0224

Which, assuming we have had bills we are going to go ahead and choose discontinue writing a check.0227

Without assign it to that we will go over to the Accounts Payable later and it moves us into the amount field.0236

Here in the amount field we are going to say we are going to pay $156 and 91 cents.0242

We will hit tab and you will notice that there it automatically will handwrite the amount in the amount field for us.0248

It will also pull in from our vendor list the address name and address of that particular vendor that we are paying.0258

We can put down in the memo field that this is for telephone expense or office telephone. Let us say.0266

OK. Now, once we have that filled out.0273

The lower portion of the check writing field is where we assigned the category expense that this item has.0283

So, we can click on the very first item or if we hit tab it will bring us over to that.0292

And we can drop down that menu bar.0297

And there we can actually type in telephone because that is the expense that this vendor is.0300

So, we type in TEL and it automatically pulls up the telephone expense.0307

Or we can choose from the drop down menu and we can hit tab.0311

It brings us over to the amount field.0316

And in the memo field we can always put in an additional memo if we wish.0318

At this point in time we are OK with that. We are going to leave it as is.0322

In these other fields, customer job and billing and class.0327

Customer job, just for your reference, references if we have an expense that were going to assign to a job.0332

For instance, if we are a construction company or a land set company.0341

And we are working on a job and we are paying for supplies for that particular job.0346

We can assign that to a customer that we can bill later.0351

And then there we can assign it to a customer for doing this for family.0355

And then we can bill that expense later into an invoice and we can recoup those expense.0360

So that is a nice way that we can recoup our expenses that way.0365

So, just that is a little side note.0373

Another side note is class of business. 0376

We can actually classify this expense as well especially if we are going to bill it later to a customer.0378

We can assign it that this is new construction or remodel or it is overhead expenses.0384

So, we are just going to leave those blank for now.0390

But keep in mind that those are helpful tools that we can use in invoicing and recouping those expenses if they are for a client.0393

This point time we can say save and close and it is going to record.0402

Nice little recording sound. It is going to record that expense.0408

So, there is how we can write a QuickBooks check.0413

Now, that check is actually in there ready to be printed.0418

If we wanted to print it we are ready to print it to our printer and we have checks stocked in our printer.0422

From the file menu we can click on that. We can say print forms and will see checks.0427

We will choose checks and there is a check that we just wrote.0434

Assuming that we are in sequence with our checks numbers.0438

We can make sure that the check number is correct. This is 10080.0443

It is checked. If we hit OK it is going to bring us to a printer.0447

And then we can print it. We are not going to print it at this point in time.0451

But that is how we would print that check. I will hit cancel at this point.0454

So, now if we want to go ahead and move on with the lesson.0460

And say we are going to teach how to use bank account registers and show you how to open up a register.0464

Now, there is various ways of opening up a checking account register or any register in QuickBooks.0472

We can certainly look at the chart of accounts from the home menu or I call it the flowchart.0478

Because it has a nice flowchart of our workflow but over here it has chart of accounts.0484

We also can open up the chart of accounts by going up to lists and choosing chart of accounts.0490

Here it opens up our chart of accounts and we can have a list of everything.0499

It shows all of our banking accounts, our savings accounts etc.0503

We can go ahead and look at the savings account.0507

We can open up our savings account register.0511

And it shows all the items that have been cleared in our bank statement.0514

And the other transferring the funds that we have to.0518

So, if we want to look at the check that we just wrote.0522

Let us open up the check register. 0526

So, we will close this particular one down by using the grey X to close this window down.0528

And we will go ahead and double click on the checking account.0535

And we will see that here is our Cal telephone that we just entered.0539

It went ahead and entered in that particular expense that we just entered into.0544

So, that helps us understand where and how are the taxes.0549

So, QuickBooks uses many forms like the check writing form.0553

As we look at that this is a form. An invoice is a form. Statements are forms 0557

And every time we use a form it is a nice way that we can enter in the information very visually.0563

But in the background it goes to our register and it enters it into our register automatically for us.0569

So, that really helps us there.0577

So, that is how we open up a register.0581

We are going to show how to enter a handwritten check.0586

For instance, there is many times where you might have your checkbook with you.0590

When you are conducting business and you are on the road.0593

You might go to buy some supplies. You might go to a hardware store, wherever you might be.0596

And you actually handwrite a check and deliver that to the cash register or the cashier at the store.0602

Well, when we come back we have, hopefully. You have used the register in your little checkbook.0609

And you can come back to QuickBooks and enter in the data in your QuickBooks to record that transaction.0615

That is a common thing. Many people do that or write checks throughout the week.0622

And then they choose one day a week to bring in their check register handwritten and transpose it into their QuickBooks.0626

So, the register shows every transaction we have.0636

We are going to get into a little bit later on online banking.0640

And how to pull in the transactions directly from your bank account, online.0643

Downloading those transactions into QuickBooks.0649

That is one way of recording it but the best way I always find is manually making sure it is in there properly.0653

So, that when you download information from your bank it can actually reconcile it rather quickly.0659

So, we are going to go through how to enter a handwritten check.0666

I am going to close this window down so that everything is closed.0670

I go to window manual and I am going to say close all. So, everything is closed.0674

In order to enter in a handwritten check the place we need to go to is the check register.0680

So, to get that as you remember we can either from the home screen use the check register icon.0687

Or we can go up to lists and go to the chart of accounts and find it that way.0697

Or we can go to bank and we can say use register.0703

So, let us just choose that using register. 0708

It is going to pull up and ask us which bank capital you want to use.0711

Well, in this case we are going to go ahead and use the check register.0714

Again as we notice in this screen we have our last transaction or check that needs to be printed for the telephone company.0721

So, in this case we are going to go ahead and look at the register.0730

In the very bottom line is a blank line just like you would see in your own bank account.0734

Check register that the bank gives you it is formatted the same way.0740

You have the date on one side. You have an area for your check numbers. You have an area for your payee. 0745

You see the account which is the actual expense or category of expense that you have.0754

A memo field, the amount of the payment field and the amount of the deposit field.0759

So, all these up here correspond with each of these rows or items or tab areas here.0765

If you check register payment is up here. Memo is down here.0773

Payee is up here. Account is down here.0777

So, each of these it is a nice little check register.0779

So, in order to enter something we are going to go down to the very bottom of the check register into the open field.0782

We are going to assume that this date is our current date and we will hit tab.0790

Now, it is going to automatically update a check number for us on the next number.0796

So, we are going to put in a check number of 1204 because that is the check number that we have written.0802

And we are away and purchasing supplies we will hit tab into the next field.0808

And we went ahead and we bought supplies at Bayshore office supply. OK?0815

So, we were at the office supply store at Bayshore. 0825

We handwrote a check number 1204. We will hit tab and it is going to give us a note.0829

Notice here it is saying hey it is not in the vendor list.0837

We do not have this in the main list. What would you like to do?0841

So, it asks us what we are going to quick add it. We are going to set it up.0844

Will he cancel at this point? We will just go ahead and click on quick add.0847

And it will add it to one of our name lists.0852

Here is the name list that we have to choose from.0855

It could be a vendor, a customer, an employee or another.0857

I typically recommend never using other. 0862

Pretty much every individual or company that you are going to deal with will either be a vendor.0865

Someone that you need services from and you are paying services for.0871

A customer, someone who pays you for services you provide and employees, someone who works for you and other.0876

I do not know but pretty much most every person you deal with or company.0884

Will follow on one of these 3 categories and other I do not really see.0889

And I advise not to use that as often as possible but it is there just in case.0894

In this case for Bayshore office supplies is going to be a vendor.0899

We will click on OK and it will automatically add it to our vendor list.0903

Now, as we hit tab it goes directly to the payment field.0909

And in this case we paid $99 and 95 cents for office supplies.0912

We will hit tab and it will bring us directly to the account or category of expense area.0918

And this is where we can drop down the list.0925

Or at this point in time we can actually type in supplies or office supplies.0927

There we go. If we type in office supplies it will bring us directly to that expense category.0935

And we can click on tab and it brings us into the memo field.0940

In which we can say this is what we bought. We bought an office chair.0946

So, we can type in office chair. Once we hit tab it is going to record that particular item for us.0951

And that was Bayshore office supply, up here, check number 1204. 0961

It puts it in date order as well as check order number.0968

As you can tell this check number is a lot smaller than these other check numbers.0974

So, these are listed below it and more recent. So, it puts it up there for us.0978

So, that is all done and so now we know how to enter in handwritten checks.0984

The next thing we are going to go through is transferring money between accounts.0994

Now, you might have money in your savings account. 0998

You are using money from your checking account to purchase office supplies, to purchase things, pay people, and pay contractors, whatever.1002

But sometimes there is a need where you need to transfer money between your savings and checking account or other accounts.1009

So, we are going to show you how to transfer and record those transfers of funds.1017

First thing I am going to do is I am going to close this window down.1023

So, we have everything clean and fresh. I will open up my home screen again.1027

So, what we can do in transferring funds is a couple of ways to do it.1031

We can actually do it directly from the check register. OK?1038

Or we can go up to banking and choose the transfer fun option and this is the easiest way to do it.1044

So, I will show you this way method first then I will show you how to do it in a check register.1052

And I will show you how to fix it.1057

So, first thing we are going to do is we are going to click on banking from the banking menu.1059

We will choose transfer funds. It brings up a window or another form that we can fill out.1064

The date. We are going to assume this is the correct date as of today's day December 15, 2016.1073

And the next thing we are going to do is we are going to say.1081

We are going to transfer funds from our checking account into our savings account. OK?1084

Now we want to see let us say we want to transfer a $5000. OK?1094

So, this is what we will do. We are transferring $5000 from our checking account to our savings account.1103

Once we do that we can say save and close. It is all correct and say save and close.1113

It says you are transferring funds between two accounts.1121

The online transfer check box is not selected.1124

This means the transfer will not occur only in your company file. It will only occur in your company file.1126

You should make sure that it has been done in your bank file as well. It is what they are telling us.1133

That is fine. It has already been done in our bank. OK? 1138

So, sometimes we can go ahead and make sure that is done our bank account and most of times we go to our bank. 1142

We write out a check from our checking accounts and say deposit this into my savings account.1149

And this is what we have just recorded.1153

To check that we are going to look at the check register. 1156

We will look at our checking account and we will see that we have this.1160

We wrote a check of $5000 to our savings account and it says it is a transfer.1164

So, this gives us an idea and it tells us exactly what type is.1171

We can also record it directly here if we want it to by saying.1175

Let us say I am going to make a $1000 transfer to my savings account.1181

So, under the payment amount I would put that $1000 in there.1185

And then I would drop down the expense menu and I could say savings and choose that savings account.1191

It automatically says transfer and I can just say I put the reason in additional funds transferred.1198

OK? And hit tab. It will record that as well.1211

So, here it is. Here is the 2 ways.1213

One was using the funds transfer option field.1215

Or we can go directly into the check register and we can enter it that direction.1219

I am going to go ahead and remove this particular transfer that I did just now of a $1000.1226

I put it in. it is a mistake so I will show you how to delete that.1232

I am going to highlight that transaction. I am going to go up to the edit menu and I am going to say delete or void.1236

At this point I will delete it. It was a complete mistake and I will delete that just for this purpose here.1245

So, that is how we transfer funds between accounts.1252

Now, we are going to go ahead and show you how to reconcile your bank account using QuickBooks.1258

Now, of course after we utilized QuickBooks we are putting in all these transactions.1264

We are entering in handwritten checks. 1268

We are entering in information from our bank account. We are downloading information. 1271

All sorts of transactions are occurring in every month. We get a bank statement from our bank.1277

The most important thing you can do in your business. 1283

Do yourself a favor and reconcile your bank every month.1286

If you can actually reconcile things online, keeping track of it on a daily or weekly basis.1291

That is better for your financial health.1297

So, what we are going to do is utilize our QuickBooks to help us with this.1299

It is a much easier function to do using QuickBooks to reconcile rather than completely manual.1304

Once we get in the mail we will get our bank statement every month.1312

Usually around the 5th or by the 10th of the month we will get the previous month transactions or the banks statement.1318

So, there is several ways of us running our bank statement and in reconciling that.1325

We can choose from the home menu our reconcile button or we can go up to the banking menu item and choose reconcile.1331

When we do that and click on reconcile it pulls up the reconciliation module.1340

With a nice little form and says which account we are going to use.1346

We can choose which bank account we are going to reconcile.1348

We can do credit cards. We can do all sorts of things.1352

Right now we are going to go ahead and reconcile our checking account.1354

With this we are going to make sure that we have from our bank statement.1359

We are going to put in an amount of 15.304 and 57 cents.1363

And if you have kept up with the lessons it should work with this.1371

But we are going to put in a service charge of $14 with a service date of 12-15-2015.1375

We are going to make sure that the statement date is 12-15-2015.1382

We are going to assign the service charge that the bank charges us of $14 to bank service charges.1387

Now, with this, once that is done we can go ahead and put in an interest earn.1395

If the bank gave us interest on the service date at the same time, 12-15-2015, and assigns that to interest income.1399

At this point our bank does not give us much interest at all or do they?1406

So, we will go ahead and click OK.1410

From here when we have our bank statement in front of us.1412

I always recommend going by line, item by item and making sure it is on the bank statement.1416

Whatever is on the bank statement we want to check off on our QuickBooks.1422

So, these deposits are on our bank statement.1427

So, we are going to check those off and we are going to go through each one and we are going to check them off.1431

And we are going to check on this bank transfer and we are going to check it off.1434

We are going to check on all this things and we will check them off.1441

The transfer money here, the $1000 here, deposit etc. 1445

The only ones we are not going to record are the items of 12-12 beyond. OK? 1450

So, we do not have those. We will go ahead and check all of these.1458

We will notice all this checks that we have written. We are going to look at it by check number.1464

We can sort this trough anyway we like.1468

If we do not want to do it by check number we can do it by dates.1472

OK, or we can do it by check number and it is going to list the items first that are here.1477

Now that we have 12-15 these things were automatically done assuming from our bank.1482

So, we will check those. We are going to check everything here on this.1488

So, we will make sure we say mark all and I want to make sure I uncheck these 12-12 here, beyond here.1493

Ok, actually it is beyond 12-12 these deposits here.1499

So, when I make sure everything is exactly as it should be on my bank statement.1506

And it is checked off and cleared with the checkmark from our bank statement meaning it cleared the bank.1510

So, we are going to go ahead and put a checkmark next to those transactions.1518

That means that it has been cleared through the bank.1522

When we look at our bottom right corner this the most important thing we want to look for is that everything was cleared.1526

Our ending balance in our bank statement according to this little sample is 15.304 and 57 cents.1534

And we cleared 15.304 and 57 cents worth of transactions.1541

We have put a checkmark next to those transactions which equaled 15.304 And 57 cents.1546

The difference is zero. If we do not have a zero difference then there is a problem with our reconciliation.1553

Assuming that we did it correctly and you are following along.1561

Then we just go ahead and say reconcile now.1565

And we bring it to the next window after it reconciles and it says you want to print the reconciliation?1569

Yes, we normally want to print it.1577

At this point we will just display it and it will go ahead and display it.1579

That was just a quick little error message for Adobe.1583

But it pulls up our reconciliation summary and the other one that we get is our detail.1586

And it lists all the cleared transactions.1594

And then it lists the transactions that have not been cleared on our register.1597

So, it will show us our bank balance and it will show us our actual register balance.1603

So, here is our bank balance. Our bank shows 15.304. 1610

We have some deposits in transit that have not hit the bank yet or it is not on the bank statement.1614

So, therefore our actual register balance is the 41.000.1620

Now, we are going to go ahead and show you how to view the cleared checks in the register.1624

Once we go ahead and clear out all the items that have been cleared through the bank.1629

We can actually look for those.1635

So, using QuickBooks we can open up our check register.1637

I am going to menu and choose use register or check from our home menu. The checks register at the bottom.1642

We are going to look at the checking account and we will choose OK.1652

From here we will notice that all these items have been cleared and marked.1655

But let us say we want to go ahead and find a particular amount that we entered.1660

We are looking for say $500 or $5000.1666

We can go up to the go to button in the upper left corner of the check register.1671

And it will give us a nice little search.1679

From here we can search for any particular name. Let us say we want to look for the Cal telephone.1681

And we can say go back and I will go back to the most recent or we can go back to the last time we have paid him.1688

And go back and keep on hitting back and it is going to highlight each time we have paid Cal telephone.1694

OK and it will show each check throughout the year. If not we can choose other things.1700

Let us say we want to find a particular amount. 1708

We cannot remember who we have paid it to but it was $500.1710

So, we can go to go to. Which field? We can say the amount and we are going to search for $500.1713

Go back to the most recent $500. There is the deposit or maybe there is a check.1723

Oh, there is a check that we have paid to Washout a and son painting for $500. OK and so forth. 1728

So, we can look for things of that nature. So that kind of helps us there.1735

OK, so that is how we can certainly look for specific transactions that we like.1740

Thanks again for using We will see you next time.1747