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Community Champion

How the undeposited funds work in QuickBooks Online

5 Comments
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Community Champion

How the undeposited funds work in QuickBooks Online

Good video, Steve!

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Anonymous
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How the undeposited funds work in QuickBooks Online

Hey Steve,

 

Great video, would you be able to embed it in the post?

 

The Undeposited Funds step is so important for first-time QuickBook users to learn. We often hear that new users skip this step during their first couple months because they don't really understand and later on realize they were entering duplicate transactions as a result. 

 

Should users always use the intermediary Undeposited Funds account or only when they have a batch of transactions? What's the best practice to ensure first-time users are "doing it right" every time? 


 My latest effort – “How to Customize Reports in QuickBooks Online

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Community Champion

How the undeposited funds work in QuickBooks Online

Many people today take a pic with their phone to do their banking.  I do this for my business as well.  I'd much rather have them pay me via QBO payment network.  So easy.  But for my customer's that take a pic for each check, I just have them deposit them straight to the bank.  

 

Undeposited fund account can be confusing! That is why I love the desk drawer analogy. Think of that account like your desk draw, it just holds your customer payments till they go to the bank.   :cathappy:

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Anonymous
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How the undeposited funds work in QuickBooks Online

@lynda,

 

The "desk drawer" analogy could be an article unto itself. Great learning tool. 

 

What do you think causes user confusion about which features to use and when? Is there a good check users can do so they don't do double entry/ double payment/ double income recording?

 


 My latest effort – “How to Customize Reports in QuickBooks Online

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Community Champion

How the undeposited funds work in QuickBooks Online

@Anonymous I think the confusion comes from the account itself.  It is a QuickBooks account, one that QB made up. So when a new user makes a deposit, they immediately think, “I am putting this in the bank” and select their bank account. Which, of course, is perfectly fine if that is the only check in the deposit.  

 

How do I find it?  It is part of what I do when a client or new customer says, “Can you look at my file, my income seems high.”  Run a trial balance and if that account has a big balance, you know it is probably due to this. Or just click +bank deposit.  I had a customer this year that had 250 pages (yes I said pages) of undeposited funds!  OMG!  He knew it was there but didn’t notice the page after page that existed. 

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