QuickBooks is the world’s best accounting and bookkeeping software made by Intuit. In this post we are going to discuss the use of the undeposited funds account to receive payments in QuickBooks Online. The Undeposited Funds account in QuickBooks Online serves an awesome feature- it is a temporary account which is used by QB users to hold payments received from the invoices before you deposit them in the bank. This process is remarkably mandatory for QB users who do not process transactions through QuickBooks Payments and import payment data from external processing services.
Importance of Undeposited Funds Account
Undeposited Funds is a default account in QuickBooks which holds funds from the payments to your company until you deposit them you to your own bank account. You cannot deposit funds directly to Undeposited Funds, because it is just a temporary account; you can deposit the funds in a single transaction after you take your deposits to your bank account. The benefit to a lump sum payment is that your transactions are still itemized in the account register but all you have to do is check the lump sum deposits when reconciling transactions with your statements of the bank.
Steps to enter transactions with Undeposited Funds-
- Click on the Lists menu and then choose Items.
- Choose the option of payment from the Type drop-down list and then further add any additional information for the transaction.
- Click on Account drop-down list and then choose “Undeposited Funds” and then click on “OK”.
How to Deposit Undeposited Funds
Implement the steps below to deposit Undeposited Funds Account to Receive Payments in QuickBooks Online-
- Click on Banking tab and then choose “Make Deposits“.
- Choose the payments from Undeposited Funds which you wish to deposit. If the “Payment to Deposit” window does not open on its own then chooses “Payments” on the “Make Deposits” window.
- Click on OK.
- Click on the Deposit To list and then choose the bank account you wish to use for the deposit.
- Type-in the date in the Date field and then if allowed enters any additional payments to deposit.
- Click on Print option so that you could have a hard copy of deposit slip.
- Click on OK so that transaction could be saved and now take the slip to the bank and deposit the funds into your account.
Use the Undeposited Funds account if your company accepts transactions all the day by check or crash and then deposit them to the bank in a single trip. Companies which take only credit cards deposit one transaction at a time straight forward to your bank account and other online payments basically do not use the Undeposited Funds account.
We hope that the above steps really did help you a lot and in case if you have any doubts then feel free to seek help from our QuickBooks Online Support team by calling them on their toll-free number at 1800-961-6588.