If you or your bookkeeper are using QuickBooks for your accounting, creating a clearing account in QuickBooks can help you reconcile your net billing deposits.
Only you know what will work best for your business, if you have questions about how to best reconcile your deposits we recommend speaking with your accountant, bookkeeper, or QuickBooks directly.
A Clearing Account is an account that you use to move money from one account to another account when you cannot move the money directly. This account normally has a balance of $0.00 because you always take out the same amount that you put in.
You can find instructions on how to set up a clearing account in QuickBooks here. Once the account is set up, you can follow the steps below to reconcile your deposits.
For this process we'll be using an example where on April 1, 2021 you processed a batch for $1,000.00 and the fees for the batch were $30.00 and the net amount sent to you was $970.00
In QuickBooks, create sales receipts by either invoice or by batch processed. The sales receipts should be paid against your newly applied clearing account.
Note: Sales receipts should include the gross transaction/sales amount of the invoice or the batch plus applicable taxes. This can be done manually or by CSV import. The decision about whether to put in the invoices individually or the entire batch as one depends on your accounting process.
Using our example, you would create a sales receipt of $1,000.00 (splitting out taxes and sales on your receipt as needed) and pay it with your clearing account.
QuickBooks will automatically connect to your bank account and pull in all bank transactions. You will need to find the net batch amount that was sent from Helcim and record it as a transfer to your clearing account.
Using our example, the bank deposit that Helcim sent was $970.00. This amount will be transferred to the clearing account.
In the clearing account, the balance went up by $1,000.00 and then down by $970.00, so there is a balance left of $30.00. You can then do the following journal entry to zero out the clearing account:
Debit Bank Fees Expense for $30.00 and Credit Clearing account for $30.00
At the end of the day, the balance in the clearing account should always be zero
You will be able to reconcile all of these amounts using your Bank Deposits screen under My Business.
Was this article helpful?
Thank you for your feedback! Our team will get back to you