Tip: Add a credit note to your deposits

July 22, 2008

Here’s a great little tip for you shoebox accounting types out there.

Problem: when you look at your bank statements, it’s hard to remember where your income comes from. For example, maybe you deposited $1500 on July the 3rd. If you have 9 cheques for $1500 in your FreshBooks account, how do you know which on is which?

Solution: when you deposit a cheque, don’t give it to a bank machine, give it to a bank teller and ask them to “add a credit memo” with your client’s name (“ABC Corp”) or an invoice number (“Inv #2122”) when they enter the deposit. This makes it really easy to look at your bank statement and know who/where the deposits came from, especially at the end of the year when it’s hard to remember the details of your deposits.

about the author

Co-Founder & CEO, FreshBooks Mike is the co-founder and CEO of FreshBooks, the world’s #1 cloud accounting software for self-employed professionals. Built in 2003 after he accidentally saved over an invoice, Mike spent 3.5 years growing FreshBooks from his parents’ basement. Since then, over 10 million people have used FreshBooks to save time billing, and collect billions of dollars. A lover of the outdoors, Mike has been bitten so many times it’s rumored he’s the first human to have developed immunity to mosquitoes.