**Quick answer bellow**
Long answer:
In QuickBooks Desktop, the Undeposited Funds account is used as a holding place for incoming payments that have not yet been deposited into the bank account. This account is automatically created by QuickBooks and is used to track the total amount of money that is collected from customers but has not yet been deposited into the bank.
Here's how it works:
When a payment is received, whether it's by check, ACH, or credit card, QuickBooks will record the payment in the Undeposited Funds account. This increases the balance in the Undeposited Funds account and decreases the Accounts Receivable balance.
When you're ready to deposit the payments into the bank account, you can use the "Make Deposits" feature in QuickBooks to select the payments you want to deposit and move them from the Undeposited Funds account to the bank account. This decreases the balance in the Undeposited Funds account and increases the balance in the bank account.
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Regarding credit card payments, QuickBooks Desktop integrates with various payment processors, such as PayPal or Square, to process credit card payments. When a credit card payment is processed, the payment is automatically recorded in QuickBooks and deposited into the Undeposited Funds account. However, the processing of credit card payments can take several days, and this can result in a delay between the time the payment is received and when it is recorded in QuickBooks.
In terms of the balance in the Undeposited Funds account, it's not necessary for the balance to be $0.00 every so often. The balance will fluctuate based on the timing of payments received and deposits made. If there are periods of time where no payments are received, the balance in the Undeposited Funds account may remain unchanged. The important thing is that the balance in the Undeposited Funds account accurately reflects the amount of money that has been collected from customers but has not yet been deposited into the bank.
**The problem is, that in your company file, there were not very often moments where there were zero transactions in Undeposited Funds. Because you have a normal businesses with consistent cash flow, and it's normal to have payments pending to be deposited. THE ISSUE is there is no way to force QuickBooks to group payments by Deposits from the report to make it easier for your CPA to understand...
