Double Revenue – How to correct in QBO
Double Revenue? How is this possible? You may be noticing this today as you review your year-end records in QuickBooks Online (QBO). While it would be wonderful to have double revenue with single expenses. It would not be wonderful to pay taxes on monies not earned.
Double Revenue: How to spot the error....
My first "red flag" when reviewing a client's file is the undeposited fund account. Does it carry a large balance? Are there a bunch of customer payments not in a deposit from earlier in the year?
Double Revenue: Another red flag....
Look at the Profit and Loss Report with accrual basis. Do you see "deposits" and customer invoices? That is an issue. It is entirely possible that the QBO user has entered income using the bank feeds and also entered customer invoices and customer payments. This will produce income x 2. Basically, doubling your revenue.
The proper flow....
If you are using accounts receivable, the flow is:
- Enter the invoice or Sales receipt
- Enter the payment (for your invoice). Make sure the payment points to undeposited fund account if the payments are grouped for deposit.
- Go to + bank deposit and group the payments as they were grouped when you took them to the bank.
- Match your deposit to the bank feed
Double Revenue: Repairing the incorrect entries
Especially if you have reconciled the manually downloaded income transactions, it is best to open each one and select the customer payments from the hanging list in +bank deposit and remove (trash can) the line item that was entered directly to your sales/income account. Save and close. This will clean out the old payments, put them in their proper deposit and remove the double revenue transaction. All at the same time. Your transaction will remain reconciled.
Below is a video of this entire correction process. Here is another link for a past blog post on undeposited funds.
If you are interested in me reviewing your file and helping you make corrections in the records, please reach out to me on my contacts page. This cleanup is a service I provide at year-end. I will give you a fixed price for the clean up work so there are no surprises.
If you have any questions or would like to see a future video on another topic, please reach out to me on Facebook.