Don’t hesitate to post again if you have other questions. If you have any additional concerns, please add them below. It seems like there are double tracking of payments, Mona.

To see if this has occurred, check the balance in the undeposited funds account against the balance sheet report. Some QuickBooks Online users prefer to post payments straight to their bank accounts rather than using the Undeposited Funds account. It requires you to do an additional step in the form of multiple entries for each deposit (one to the undeposited funds account and the other to the right account). It is, however, useful for businesses that frequently get paid by check or cash and physically deposit the money to the bank instead of using mobile check deposits. In fact we suggest you make this setting the default.

Based on the information you’ve shared, it appears that there’s a bank deposit that was created in the past but wasn’t made from Undeposited Funds. It happened that we had to switch from ESC acc system to Quickbooks online and FieldEdge. In time of transition, double invoices were raised. “Or just make one giant deposit and drop down a line and enter your income acct. with a minus amount of the total deposit to clear them.  Your net deposit would be zero.” Or just make one giant deposit and drop down a line and enter your income acct.

You can undo your transactions accidentally added into your register so you can match them to your existing transactions instead. I have processed a payment through online bookkeeping account and cleared the invoice. For majority of my clients, I personally process (ACH) payments once a month. You can rest assured that we will work closely with you to create actionable business plans and accurate financial reporting.

• The following applies to those of you who are using the Group with Other Undeposited Funds feature.
• If you don’t want to use the Undeposited Funds account, you can select the bank account in the Deposit to field when creating a transaction.
• It is a beautiful thing to see cloud accounting come to life with real-time data being fed into your books.
• Let me know if you have any questions about undeposited funds.

Select all the payments you will include in the deposit, making sure the amount you record in QuickBooks Online matches the amount on your bank deposit slip. Also, be sure you are posting the deposit to the correct account — in this case, checking — and that the date on the transaction is the date you will take the deposit to the bank. When you have your deposit slip, make a bank deposit in QuickBooks to combine payments in Undeposited Funds to match.

Keeping the Undeposited Funds account accurate

Ensure your financial statements are accurate by mastering the art of reconciling your bank and credit card transactions in QuickBooks. Additionally, if you have transactions in your bank similar to those in the undeposited funds, you can manually match them to link and move them out of the undeposited accounts. Since both transactions were dated on Jan. 29, the first thing to check for is a deposit in your Bank Register for $2,062.52 dated on or around Jan. 29. It’s possible the deposit was posted straight to an Income account rather than matched to payments received. Also check for two separate deposits for $1,675.52 and $387, respectively.

If you have further concerns about how to clean out the Undeposited funds, please don’t hesitate to ask. I’m here to help you clear that from your Undeposited Funds account. Richard is the kind of man everyone likes to have around.

Outsourcing your bookkeeping is more affordable than you would think. We save you money the moment you hire us by cutting out the expensive cost of hiring an in-house CFO. If it’s still the same, I’d suggest contacting QuickBooks Care team. They have the tools to verify your account and to further check to get to the bottom of this.

Best Accounting Software for Small Businesses

Thanks for getting back on this thread, @AdequatelyHydrated. I’ll help you get around the issue you’ve encountered while trying to follow the steps provided by my colleague above. I have another method for getting the correct data into the report.

Skipping bank reconciliations

Should you have a large sum of Undeposited Funds and no money in-process to you, then you are truly overstating your Income as well as overstating the assets in your business. You pay taxes based on the net income of your business. With an incorrect Undeposited Funds balance, chances are high that you are overstating the most and least expensive cars to maintain your profit and paying too many taxes. It’s important that your transactions and accounts match up with what your accountant suggests. Not only will this make the bookkeeping easier but it also encourages transparency between you and your accountant. That being said, I recommend following your accountant’s advice.

The Secret of the Undeposited Funds Account

Both the Undeposited Funds and Petty Cash accounts are used to record cash related transactions. However, the Petty Cash account is used exclusively to record daily expenses or income from business operations. The recommendation shared by my peer LieraMarie_A would help settle your undeposited funds issue, @Amertens. She updated the reconciliation part to address this entirely. We’ll have to delete the deposit and use the pending one on the undeposited funds. Then, recreate it by selecting the pending payment.

To resolve this, I’ll provide some troubleshooting actions to help you fix it. Reach out to me again through this thread if you still have questions or concerns with deposits. Allow me to share some information about undeposited funds.

The basics of managing your clients and receivables in QuickBooks Online

Accurately record the date a payment was received. Let’s say your customer sent you a check for services rendered. You received the check on the last day of the year, which happened to be a Saturday.