Undeposited Funds

Thank you for reaching out regarding your QuickBooks Online (QBO) issue with undeposited funds, R2C. I understand how frustrating it can be when your financial records don't align as expected, especially while diligently matching transactions every week. I appreciate you providing details about your current process and the problems you're encountering. Let me share some insight to help resolve this issue.

To begin, QBO relies on transaction data from your Point of Sale (POS) system, which is crucial for accurate financial tracking. It’s possible your POS is mapping transactions to the Undeposited Funds account instead of a specific bank account. I recommend reviewing your POS settings to ensure it's configured to the correct bank account. This way, your POS transactions will be imported into QBO and allocated to the appropriate bank account.

To clear the old transactions, you can use the bank deposit feature in QBO to correctly deposit them to the right account. This step ensures that your financial records accurately reflect your bank statements.

Additionally, make it a habit to regularly reconcile your accounts to ensure they match your bank and credit card statements. This practice helps maintain the integrity of your financial records and prevents discrepancies.

I hope this information provides you with a clear path forward to resolve the undeposited funds in your QBO account. If you have further concerns or additional questions, please don't hesitate to reply below. We're committed to helping you maintain accurate and efficient financial records for your business.

Thank you for the answer. But can’t I just reclassify it when I’m matching to Sales?

Thank you for getting back to us, @R2C. The option to reclassify matching transactions is currently unavailable in QuickBooks. Matched transactions from Undeposited Funds (generated sales from Point of Sales) will automatically be categorized as Undeposited Funds in the Banking page.

If you want to reclassify your downloaded transaction, you can manually categorize them. This way, they won't show as Undeposited Funds in the Category section. Before proceeding, it is necessary to delete the sales created from Point of Sales to avoid duplicate entries.

Here's how to categorize transaction: 
 

1. Go to Transactions, then click Bank transactions.
2. Choose the account you want to review.
3. Select the For review tab.
4. Choose a category and fill in the rest of the fields.
5. Click Confirm.

Take note that matched sales transactions posted under Undeposited Funds account won't show in the Bank deposit window. This action will clear your sales transactions in the register.

Additionally, you may want to set up bank rules to automatically categorize your transaction in QuickBooks Online.

Lastly, consider exploring our QuickBooks Live Expert Assisted to streamline your financial statements. This service is designed to aid you in managing your books more efficiently, from matching and categorizing transactions to reconciling your accounts. It's a great resource for saving time and allowing you to focus more on expanding your business.

If you have further questions regarding your transaction, feel free to comment below. I'm here to assist you!