We offer two services, a revolving line of credit and net terms on business purchases. This information applies to the revolving line of credit service.
Turn on auto bookkeeping for QuickBooks Online so that your accounting software stays up to date while using Fundbox. Auto Bookkeeping was designed to automatically record Fundbox transactions in your QuickBooks Online, so you don’t have to do it yourself. Based on the Double Entry Bookkeeping method, the advances and repayment transactions are recorded to ensure your QuickBooks Online stays balanced while using Fundbox.
Transactions will be recorded into your QuickBooks as soon as the bank automatically confirms to us that that the transaction was successful (typically within 5 business days).
How does it work?
When you clear an invoice the transaction will be recorded as:
- an increase to your cash account to reflect the deposit into your bank account
- a corresponding increase entry in a liability account, to reflect the amount owed to Fundbox.
When you make a payment the transaction will be recorded as:
- a withdrawal from your cash account which reflects the total payment made
- an increase in an expense account labeled "Fundbox Interest" to reflect the interest
- a corresponding decrease entry in the liability account, to reflect the advance repayment amount.
For details about activating Auto Bookkeeping, click here.
Note: Fundbox will only begin recording transactions once Auto Bookkeeping is enabled. Any past entries for Fundbox transactions will not be retroactively logged.
How will it look in my QuickBooks Online?
Fundbox as a vendor:
Fundbox in your chart of accounts:
This is what an advance of $954.75 looks like in the bank register. Note the deposit in the selected checking account.
This is what an advance of $954.75 looks like in your in the liability register.
This is what a weekly repayment looks like in your cash account. Note: there is a single withdrawal from your checking account, but the weekly repayment amount and the interest are recorded separately in QBO.
This is what a weekly repayment looks like in the liability register:
You can view the interest for each repayment in the expense account Fundbox Interest: