How to match bank deposits to invoices

Direct Answer to Matching Bank Deposits to Invoices

Start by connecting your bank feed to QuickBooks Online. This lets the system auto-match most deposits to the right invoices. For those payments that don’t match automatically, QuickBooks offers a list of possible invoice candidates. Each candidate is ranked based on likelihood, with reasons given for each match. You can quickly verify these, saving time and reducing manual errors.

What Most Owners Try First, and Why It Stops Working

Many business owners initially try to match deposits manually, often using a spreadsheet. This might work for a handful of transactions, but it quickly becomes a headache as your business grows. Payments without references, short payments, or lump sums covering multiple invoices make it frustrating and error-prone. You spend too much time on the weekend comparing bank statements to your aging report, and mistakes lead to awkward follow-ups with customers who don’t owe you anything.

What to Do Instead, Without Any Software

If you're not using software, you can still make this process easier. Start by asking customers to always include invoice numbers with their payments. When payments come in, sort them by date and amount, and try to match them to your invoices manually. For lump sums, create a system where you note partial payments against each invoice. While this is still manual, having a process reduces errors and speeds things up.

How This Gets Easier When the Follow-Up Runs on a Schedule

When you automate part of this process with a tool like ARPilot, you'll get back valuable hours every week. You approve each follow-up, keeping control but letting the system handle the routine. With ARPilot, your follow-ups run on a schedule. It monitors which invoices are paid and pauses reminders immediately when payments are logged. This means no more sending awkward reminders to customers who’ve already paid. Plus, you'll have an aging report you can trust, freeing up your weekends.

FAQ

How do I connect my bank feed to QuickBooks Online? Sign in to QuickBooks Online, go to the Banking tab, and follow the prompts to connect your bank. This setup allows QuickBooks to automatically match deposits to invoices where possible.

What should I do with unmatched deposits? QuickBooks will show you a list of potential invoice matches for unmatched deposits. Review the list and confirm the correct invoice manually. This reduces the chance of errors and ensures your records are accurate.

How can ARPilot help with my receivables? ARPilot works with your existing QuickBooks Online setup to automate follow-ups. It drafts messages for you to approve, ensuring that reminders go out on time and are paused when payments are made. This means you spend less time chasing money you’re owed.

Is it possible to use ARPilot without a full team? Absolutely. ARPilot is designed for small business owners, often working alone or with minimal staff. It’s easy to set up and use, and it keeps you in control of your customer interactions.