Avoiding the Pitfalls: How to Fix Common Errors with Partial Cash Payments in QuickBooks Online

In the fast-paced world of running a business, sometimes things slip through the cracks. You record a partial cash payment in QuickBooks Online, then move on to the next task. But later, something doesn’t look quite right. Maybe the invoice still says it’s open, or worse, your bank balance doesn’t line up with what QuickBooks says you deposited. Don’t panic. Mistakes happen, and finding and fixing them isn’t as hard as it seems. Let’s dig in and figure out how to avoid these common errors.

Reviewing statements

The Problem: Only Recording One Part of the Payment

One of the most frequent mistakes when handling split payments—where part is in cash and part on a debit card—is forgetting to record both parts. You might enter the cash, then move on, leaving the card payment hanging.

How to Catch It:

When you go back to the invoice and see it still marked as partially paid, that’s your first clue. The payment didn’t fully clear, and now your records aren’t quite right.

How to Fix It:

• Open up the invoice, click Receive Payment, and double-check the details.

• If the cash is already logged, choose Debit Card from the Payment Method dropdown.

• Enter the remaining balance and hit Save and Close. The invoice should now show as fully paid.

  
  

Mistake: Using the Wrong Account for the Payment

Another common error? Sending the cash payment to the wrong account. Maybe instead of Cash on Hand, you accidentally deposited it into your Checking Account. This might not seem like a big deal now, but come reconciliation time, you’ll be scrambling to figure out why your bank records don’t match what’s in QuickBooks.

How to Spot It:

If you notice that your cash-on-hand balance is off or your bank balance doesn’t match QuickBooks, it’s time to check where the money went.

How to Fix It:

• Find the payment in the Sales tab and click on it.

• Hit Edit and correct the Deposit to field by selecting Cash on Hand for the cash portion.

• Save your changes. Now, everything should line up in your accounts.

  
  

Error: Entering the Wrong Total Amount Paid

Here’s an easy slip-up—entering the wrong amount. If a customer gave you $75 in cash and $50 on their card, but you accidentally recorded $100 for both, QuickBooks will think they’ve overpaid, and that’s a problem.

How to Catch It:

When you see an invoice marked as overpaid or your cash records show more money than you received, this is a red flag that something didn’t add up.

How to Fix It:

• Open the invoice and find the payments associated with it.

• Adjust the cash and card amounts to reflect the actual payments the customer made.

• Hit Save and Close, and the overpayment issue will be resolved.

  
  

Mistake: Not Using the Undeposited Funds Account

If you’re collecting payments throughout the day and batching them into one deposit later, you need to use the Undeposited Funds account in QuickBooks. Skipping this step can lead to a mess when it’s time to match your records with what’s in the bank.

How to Catch It:

If you see multiple deposits in QuickBooks when you know you only made one actual bank deposit, you likely didn’t use Undeposited Funds correctly.

How to Fix It:

• Go to Sales and find the payments you need to adjust.

• Change the Deposit to account to Undeposited Funds for each payment.

• Then, go to + New and select Bank Deposit. Group the payments together into a single deposit, matching your actual bank records.

Problem: The Invoice Still Says Open After Payment

You’ve entered the payment, but when you look at the invoice, it still says Open. This happens when the payment didn’t fully apply to the invoice, leaving things unfinished.

How to Catch It:

Anytime an invoice should be marked as Paid but isn’t, check the payment history on that invoice.

How to Fix It:

• Open the invoice and review the payment history.

• If a payment wasn’t applied, go back to Receive Payment, ensure it’s tied to the correct invoice, and save your changes.

• This will update the status to Paid and clean up any lingering issues.

Why It Matters

These mistakes might seem small, but they add up. If your books aren’t right, you’ll have a hard time keeping track of what’s going in and out of your business. And when it’s time to reconcile accounts, you’ll be stuck hunting down where things went wrong. Staying on top of these little errors keeps your financials clean and saves you from bigger headaches down the road.

Final Thoughts

Running a business means wearing a lot of hats, but you don’t have to let bookkeeping be a burden. By catching and fixing these common errors, you can make sure your QuickBooks Online records are always accurate, whether you’re recording partial cash payments or dealing with more complex transactions.