What are undeposited funds and why is my money going?

Good funds not deposited! This is definitely a confusing area for many users. If you have no experience with bank reconciliations (or don’t), then this concept seems a bit strange … at first.

QB allows you to choose which payments are grouped into a deposit so that you can match your deposit entries to the way they appear on your bank statement. If you record payments as received but do not make a bank deposit every day, then you should use non-deposited funds. You will see the usefulness of this once you reconcile that account.

Your bank will have a total per deposit listed, that total is made up of the individual items you have posted as payment. If you are not using non-deposited funds, your QB bank record may show the payments listed one by one. If you have a lot of transactions, this will make reconciling your bank account a nightmare. By the way, you MUST reconcile your bank accounts! No, the program does not require it, but this is a crucial accounting task.

If you have payments in undeposited funds, group them and move them to the bank account by going to Make / Post deposits. A window will appear showing all the payments you have recorded through Receive Payments / Sales Receipts. If it doesn’t appear, click the payments button at the top. You can now select the payments to be bundled into a deposit. If this doesn’t fit your business model, you can change the default deposit to the account by going to Edit> Preferences> Sales and Customers (or Payments depending on version).

You have more questions? Get in touch!

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