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Transaction coding

Transaction coding answers one question at a time: where does this line on the statement belong? These posts cover owner draws and contributions, transfers between accounts, loan payments split into principal and interest, merchant deposits net of fees, refunds, chargebacks and deposits nobody can explain. Each gives the entry to post and a rule to reuse next month. Start with Recording Owner Draws From Bank Statements, the line bookkeepers miscode most often.

  1. Unidentified Deposits on Bank Statements: Next Steps

    What to do with unidentified deposits on bank statements: hold them in a suspense account, ask the client the right question and clear them before close.

    Published September 26, 2026unidentified depositssuspense accountclient questions

  2. How to Record Cash Back Rewards on Business Cards

    How to record cash back rewards on business credit cards: income, expense reduction or statement credit, and a consistent choice across client books.

    Published September 9, 2026credit cardsrewardscoding policy

  3. How to Record Prepaid Expenses From a Statement

    How to record prepaid expenses such as annual insurance from a single statement line, then release them monthly so each month carries its own cost.

    Published August 15, 2026prepaid expensesaccrualsmonthly close

  4. How to Record Loan Proceeds in Client Books

    How to record loan proceeds that land in a client's account: the liability, lender fees taken at funding, and the first payment's principal and interest.

    Published August 12, 2026loansliabilitieslender fees

  5. How to Record a Chargeback and Its Reversal

    How to record a chargeback from a client's bank statement, the fee that comes with it, and the reversal entry if the client wins the dispute later.

    Published July 23, 2026chargebacksdisputescard sales

  6. How to Record Bank Fees From a Client Statement

    How to record bank fees from a client statement: monthly service charges, wire and overdraft fees, and the refunds that should reverse them in the books.

    Published June 9, 2026bank feesbank chargesfee refunds

  7. Reversed Transactions on Bank Statements Explained

    Reversed transactions on bank statements: why a charge appears and disappears, how to post the pair so the net is zero, and when to leave both out.

    Published June 8, 2026reversalsstatement linesmonth end

  8. Recording Owner Draws From Bank Statements

    Recording owner draws from bank statements: spot transfers and personal payments, post them to equity not expenses, and set rules that catch them monthly.

    Published May 29, 2026owner drawsequityclient rules

  9. Capitalize or Expense a Purchase? Deciding Line by Line

    When to capitalize or expense a purchase seen on a client statement: thresholds, useful life, repairs versus improvements and a policy to apply each month.

    Published April 27, 2026fixed assetscapitalization policyrepairs

  10. Split Loan Payments Into Principal and Interest

    How to split loan payments into principal and interest from a bank statement line, using the lender's schedule, and fix months where the split went wrong.

    Published April 10, 2026loansinterest expenseamortization

  11. How to Record Employee Expense Reimbursements

    How to record employee expense reimbursements paid from the bank: code each expense, not the payment, and keep the receipts and approvals together.

    Published January 13, 2026reimbursementsexpense reportsemployees

  12. How to Record Merchant Deposits Net of Fees

    How to record merchant deposits net of fees: gross up each card deposit, post processing fees to their own account, and match the batch report.

    Published January 6, 2026merchant depositscard processing feessales

  13. How to Record Refunds in Bookkeeping Correctly

    How to record refunds in bookkeeping: customer refunds against sales, vendor refunds against expenses, and refund lines on a statement with no clear source.

    Published December 26, 2025refundsreturnscoding

  14. How to Categorize Zelle and Venmo Payments

    How to categorize Zelle and Venmo payments on client statements when the description is just a name: ask once, write a rule and flag personal transfers.

    Published December 22, 2025zellevenmopayee rules

  15. How to Record Customer Deposits Before the Work

    How to record customer deposits taken before the work is done: post them to a liability, move them to sales when earned and match the bank deposit.

    Published November 26, 2025customer depositsunearned revenueliabilities

  16. How to Record Sales Tax Payments Correctly

    How to record sales tax payments from a bank statement against the sales tax liability, not an expense, and what to do when the payment and report differ.

    Published July 25, 2025sales taxliabilitiesreconciliation

  17. How to Record a Returned Check and Its Fee

    How to record a returned check from a customer: reverse the deposit, book the bank fee, reopen the invoice and note it for the client to collect again.

    Published July 25, 2025returned checksnsfreceivables

  18. How to Record ATM Withdrawals in Client Books

    How to record ATM withdrawals in client books: petty cash, owner draws or cash expenses, and the receipts to ask for before a withdrawal is coded.

    Published July 4, 2025atm withdrawalspetty cashreceipts

  19. How to Categorize Software Subscriptions for Clients

    How to categorize software subscriptions on client statements: one account or several, annual plans paid upfront, and personal apps on business cards.

    Published June 19, 2025softwaresubscriptionschart of accounts

  20. How to Record Billable Expenses You Charge Back

    How to record billable expenses a client pays and then charges back to a customer, so the cost and the rebilled income both show up and match.

    Published May 31, 2025billable expensesrebillingjob costing

  21. How to Record Interest Income From Statements

    How to record interest income from bank and savings statements, where small monthly credits belong, and how they reach the year-end tax forms.

    Published February 5, 2025interest incomesavings1099-INT

  22. How to Record Payroll From Bank Statements

    How to record payroll from bank statements: net pay debits, tax payments and provider fees, matched to the payroll report so wages and liabilities balance.

    Published January 31, 2025payrollpayroll taxesliabilities

  23. Transfers Between Bank Accounts in Bookkeeping

    How to record transfers between bank accounts in bookkeeping so they never count as income or expense, and how to match both sides across two statements.

    Published January 6, 2025transfersbank accountsmatching

  24. How to Record Owner Contributions to a Business

    How to record owner contributions to a business: deposits from personal accounts, expenses paid personally, and loans from the owner versus equity.

    Published November 29, 2024owner equitycapital contributionsowner loans