In this article, we'll cover these four topics:
Adding check payment instructions to your invoices
Recording check payments on your invoices
Reconciling a check deposit
Reconciling a deposit with multiple checks

Adding check payment instructions to your invoices

A good invoice will make it abundantly clear to your customer exactly how to pay you. By adding payment instructions for checks to your invoices, you can (hopefully avoid) having your payment delayed by the all-too-common question “who do I make this check out to?”.

Step 1: First, you’ll want to add checks as a payment method to Billy. This will help you quickly add payment instructions to your invoices.

You’ll want to click ‘Settings’ -> ‘Payment methods’ to get to the right screen.

Step 2: Once you’re on the right screen, you’ll want to add a new payment method. You’ll click the ‘Add payment method’ button in the top right corner, then select ‘Check’ from the dropdown menu.

Step 3: Once you’ve selected ‘Check’, you’ll have a chance to add your payment instructions for your customers. You should be as specific as possible so your customers don’t get confused. Make sure to click ‘Save’ when you’re all finished.

Step 4: Once you’ve saved your instructions, you’ll want to add them to your new invoices. When you’re creating your new invoice, you’ll select your newly created ‘Check’ payment method. You’ll find this option in the lower left corner of your invoice creation screen.

Step 5: Once you’ve selected your new ‘Check’ payment method, you’ll want to preview your invoice to make sure it appears the way you want it to. If you’re all set, send it out!

Recording check payments on your invoices

Once you receive the check from your customer, you’ll want to let Billy know so you can mark the invoice as paid.

Step 1: Find the invoice that your customer is paying you for in your invoices list. When you click it, you’ll have the option to enter a payment for it.

Step 2: Once you’re on the ‘Enter payment’ screen, you’ll want to select the invoice that the check is for. You can always select multiple invoices if your customer is making a payment on multiple invoices.

Step 3: After you’ve selected the invoices that you’d like to apply the check payment to, you’ll want to select the bank account in Billy that the check will be deposited to.

Step 4: Finally, you’ll enter the amount on the check. If the amount on the check is different from the total amount on the invoices you’re applying the payment to, you’ll be able to record the difference as a partial payment, overpayment or bank fee.

Click ‘Enter payment’ when finished.

You’ll now see that your invoice(s) has been marked as paid.

Reconciling a check deposit

Once you’ve marked your invoices as paid, you’ll want to reconcile them as they come through in your bank feed.

Step 1: Make you’ve marked all of your invoices as paid if you’ve received checks for them.

Step 2: Click and drag your payment in Billy to match the transaction that came in through your bank feed. You can see an example below where a $120 payment marked in Billy is matched to the corresponding bank transaction.

Reconciling a deposit with multiple checks

If you’re doing a lot of business, chances are that you group your trips to the bank to deposit checks. In this example, we’ll show you how to reconcile your deposits with multiple checks.

Step 1: Make sure that you’ve marked all of your invoices as paid for those that you’ve received checks for. This process will not work for invoices marked as ‘Unpaid’.

Step 2: Locate the payments in your ‘Unreconciled entries’ tray on the right that are on your deposit slip. You’ll want to click and drag them to associate them with the bank transaction.

In the example below, we have a deposit for a total amount of $4,900. This deposit was comprised of two checks; one from Mesmeric Balance for $900 and one from Rodgers Law Firm for $4,000. We’re going to reconcile both of these payments with the deposit as pictured below:

Have a question about recording check payments or reconciliation? Feel free to reach out to us!

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