What’s the Undeposited Funds account?

Learn about the Undeposited Funds account and how to combine multiple payments together in QuickBooks.

When you put money in the bank, you often deposit several payments at once. For example, let’s say you deposit five GBP £100 checks from different customers into your real-life checking account. Your bank records all five checks as one GBP £500 deposit. So, you need to combine your five separate GBP £100 records in QuickBooks to match what your bank shows as one GBP £500 deposit.

You don’t need to do this if you’re downloading transactions directly from your bank.

Learn how it works

Use the Undeposited Funds account to hold invoice payments and sales receipts you want to combine. It’s like the lockbox (or drawer) you keep payments in before taking them to the bank.

When you have your deposit slip, make a bank deposit in QuickBooks to combine payments in Undeposited Funds to match. This two-step process ensures QuickBooks always matches your bank records. It also makes your reconciliations much easier.

Start using the Undeposited Funds account

Learn how to use the Undeposited Funds account in QuickBooks Online.