How to Record Non Check Payments in QuickBooks®

With online banking and debits cards we are using our checking accounts for so many different types of transactions… So how do you record a check in QuickBooks® when it’s not a physical check, but rather a debit card or an electronic transfer? It’s easier than you think… You begin with the same “write check” window to record non check transactions as you would to write a physical check. Do not use the field called Check# to insert the reference number or approval code for debit card receipts, this is not the best use the software and will only add to the confusion when you reconcile your bank account. Consider instead using the following abbreviations to identify when a transaction is a debit card purchase or some other type of transaction other than that of a physical check. If you want to record the reference number or approval code, insert it in the memo field. Make sure to uncheck the “print later” box, then you will be able to insert the abbreviation applicable to your transaction.

Below is a list of abbreviations you can use for the “write check” screen, you can create your own list of abbreviations too. Remember to be consistent with the abbreviations you use; if not it will make reconciling a very tedious task.

Check# is always used when issuing physical checks.

DC = Debit card purchase
DD = Direct deposit transactions (an example is direct deposit paychecks to your employees)
EFT = Electronic funds transfer (items that come out of your bank account electronically)
BP = Bill payments made with online banking
TX = Transfer between bank accounts if the receiving bank account is not a bank account that is tracked in your QuickBooks® Company File (for example a transfer can be funds used for personal reason from business to personal accounts)

If you have any questions please email us: info@laebusiness.com

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