A Comprehensive Guide to Learn Undeposited Funds in QuickBooks

Undeposited Funds in QuickBooks

QuickBooks furnish you with various innovative & advanced tools to manage your company’s customers, vendors, clients, inventory & money. You can create & manage accounts inside the software one such account we are talking about in this article is undeposited funds account.

In simple terms, undeposited Funds in QuickBooks is a holding account that tracks the money you receive from customers that have yet to be deposited to your bank account. This feature is used in the invoicing process & also called an internal other current asset account. But make sure that the bank statements must match your QuickBooks bank account ledger while employing undeposited funds when receiving money and making deposits. However, if you still goof up, we have stated the steps to rectify these miscalculations below.

Ready to know more about the undeposited funds in QuickBooks? Want to know how to utilize this account, then call at 1.833.802.0002 right now!!

How to Record Payments in the Undeposited Funds Account?

When you enter multiple payments received in the account, you can group these amounts into one transaction. Therefore, recording this way will definitely make the process smooth and rapid. The following are the two steps to put the amount in the account & how to generate the bank deposit slip in the QuickBooks application.

Recommended to read: How to resolve QuickBooks Migration Failed Unexpectedly

Step 1: Entering the transactions in the undeposited fund’s account

1. Firstly, choose the Lists menu & from there, click on the Items.
2. Then, in the Type drop-down list, click on the Type of Payment. You can also add more information related to the transaction.
3. Post that, click on the Account drop-down list & choose Undeposited Funds.
4. Lastly, choose OK.

Step 2: Depositing the slip in the bank account

1. Go to the Banking tab & choose the option saying Make Deposits.
2. Now, choose the payments in the undeposited funds that you are going to deposit. In case the window for “Payments to Deposit” is not displayed automatically, then choose
3. Payments under the Make Deposits window. Then choose OK.
4. Now, from the drop-down list of Deposit To, choose the specific bank account you are going to deposit the payment.
5. Then, proceed further & type in the date in the Date Field.
6. Go on & choose the Print option to print your deposit slip.
7. Now, choose OK to save all the transactions in QuickBooks.
8. In the end, take the deposit slip to the bank account.

Clearing the Wrong Entries in Your Undeposited Funds Account

Now, sometimes you can make mistakes when entering or recording the undeposited funds in QuickBooks or creating a deposit transaction & not reconciling it with the received amount. These entries need to be removed or cleared ASAP. Therefore, below are the steps stated for you to conduct this rectification process hassle-free.

Circumstances where modifications are done as part of a review that is dated, then:

1. Start by clicking on the Menu tab & choose the “Accountan”t option.
2. Then, from the drop-down list, choose the client data review option.
3. Now, when you see the account receivable group, click on the option stating clear up undeposited funds.

Circumstances where modifications are done as part of a dated review, then:

1. Begin by choosing the Menu tab & click on the “Accountant” option.
2. Then, proceed by selecting client data review & then choose the clear-up undeposited funds QB option.
3. Afterward, click on Save to keep all the changes you just made.

Conclusion

After thoroughly browning this article, we hope you understand the basic concept of undeposited funds accounts. Our professionals possess years of experience in assisting QuickBooks users like you. They will help you effortlessly to navigate to utilize the undeposited funds in QuickBooks. Even if you are someone using the account & have messed up in recording the payments, they will help you resolve it too.

This blog posted on: medium.com