Admittedly vendor deposits are not as interesting a topic as the trendiest paint colors or the hot new lighting offerings, but in their own way they are important. And they can be a pain to manage. We are not too proud to admit that they have bedeviled our software system, but we weren’t alone. Over the years various clients have requested that we do custom programming so that vendor deposits would work the way they thought they should work. Yet we were never satisfied with these various implementations so processing vendor deposits into QuickBooks was not included in DesignSmart or in our QuickBooks Connector optional module.
Fortunately, recently we came across an accountant who demonstrated four different ways to track vendor deposits. Working with our clients we had implemented three of the four methods he covered. The accountant pointed out the drawbacks with the three methods that we had implemented which is why we had not included these methods in DesignSmart. Then he demonstrated a fourth way to deal with vendor deposits and it was as if the skies opened and the sun started to shine. The fourth method was so obvious and clear once he explained it, one couldn’t help feeling simple for not seeing it previously. And it was by far the most accurate process from an accounting perspective.
Then, the accountant explained the inevitable “but…”. The “but” with this fourth method is that it requires the most data entry of the four methods. And that is true if you are manually entering the deposit into QuickBooks. It is not true if you are using DesignSmart and QuickBooks, because we developed the code in our QuickBooks Connector module so it does all the work for you. Now when you process a vendor deposit in DesignSmart you indicate the amount, the form of payment (credit card, check, or wire) and click a button. The QuickBooks Connector will push the deposit into QuickBooks eliminating all data entry steps and possible typos. And your QuickBooks accounting is up-to-date and accurate!