Everything you need to know about Undeposited Funds in QuickBooks

QuickBooks is a dependable bookkeeping software marketed by Intuit, mostly for small businesses. Users can keep a record of all the unsent payments in the Undeposited Funds in QuickBooks. This helps them to combine the entire payment record into a single transaction. Keep reading this blog further if you also need information on the Undeposited funds account and the correct way to use it in QuickBooks.

Get all your queries about the topic resolved by contacting a QB support team at +1.833.802.0002 for assistance.

About the undeposited funds

QuickBooks creates an Undeposited Funds Account for its users, which holds records of all the payments until they are paid or submitted to the bank account. You can easily combine all the payments into a single transaction in QuickBooks. This is similar to what a bank does, so it’s a reliable method of storing details of the payments. You can use the undeposited funds account to save your payment record and combine them into a single transaction when you have a deposit slip.

Quick Read:- What Are Undeposited Funds in QuickBooks

Procedure

The correct procedure for using the undeposited funds account in QuickBooks is mentioned below-

Step 1- Send payments to the undeposited funds account

QuickBooks allows using only one undeposited funds account. You must submit all the payments you want to combine in the same account. Later, you can choose any QB account to put your transactions. In case you use a bank or credit card account, you don’t need to combine or group the payments as QuickBooks downloads all the transactions automatically. You’ll need to categorize your payments after the software accesses your recent transactions and other info from the bank.

Step 2- Combine payments that happened outside QuickBooks and their sales receipts

You don’t need to worry about putting QB payments in the undeposited funds account, as the software does it automatically for your convenience. Use the following steps if you want to combine payments outside of QB payments-

1. Click the + New option and tap Receive payment.
2. Tap the Customer option and choose the desired customer in the drop-down list.
3. Mark the Invoice checkbox for which the payment is being received.
4. Go to the Deposit to option and tap Undeposited funds in the options list.
5. Enter the details in the form and click the Save and Send option after completing the form.

Now, you must send the sales receipts of the payments that are processed outside QuickBooks. Use these steps-

1. Go to the + New option and select Sales Receipt.
2. Choose the customer name using the Customer menu.
3. Tap the Deposit to option and click the Undeposited funds option.
4. Enter all the information asked in the sales receipt and click the Save and Send option.

After you receive the deposit slip from the bank, it becomes easy to combine payments in QuickBooks. You’ll be able to see all the undeposited funds account payments in the Bank Deposit Window. You can review your Undeposited Funds account using these steps-

1. Open the Bookkeeping menu and click the Chart of Accounts option.
2. Search for the Undeposited Funds account and click the View Register option.

Conclusion

This blog shares everything you need to know about the Undeposited Funds in QuickBooks. You also read the correct procedure for combining your payments in the undeposited accounts, and we hope you’ll use it on your QB Online.

Consult a QB support team at +1.833.802.0002 if any problems occur while using the methods.

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