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Quick Cash Entry

One way to enter cash in your QuickBooks company file is to use the Cash Sales form. This form is similar in appearance to the invoice form, but the following major differences exist between an invoiced sale and a cash sale:

  • When you enter a sale on an invoice, it is for the purpose of billing the customer, so it is important that you know the name and other pertinent information about the customer. In fact, QuickBooks does not accept an invoice that does not have a customer name filled in. In the case of a cash sale, you can record the sale without filling in the customer area of the form. Cash sales often occur without the vendor (you) knowing who the customer is. The Enter Cash Sales form has a field for Customer:Job entry, but the form can be prepared even if this field is left blank.

  • The accounting for cash sales is different from the accounting for invoices. When you record an invoice, QuickBooks increases an income account by the amount of the sale and increases accounts receivable for the same amount. With a cash sale, income is increased, but accounts receivable is not affected. Instead, cash received but not yet deposited goes into an asset account called Undeposited Funds (or you might have set up a cash holding account with a different name).


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