Bank Account Help

Rockwood · ‎October 03, 2018

Hi,

So we just updated QuickBooks from 2015 to 2019 and in an attempt to get our books in order so we can get a better idea on cash flow we need to set up our bank account. The only problem is no one has ever done this correctly as far as I can tell. Everything is under undeposited funds (3 years of this!), I don't have very many bank statements and they haven't kept an accurate record of bills. Is there a way I can set up like a "day 0" or bulk reconcile just so I can get this under control and start fresh?

Thanks in advance!

VivienJ · ‎October 03, 2018

Thanks for visiting QuickBooks Community, Rockwood.

I can provide some details about how the cash flow process works in QuickBooks Desktop.

The default Deposit to account for your invoice payments and sales receipts amounts in QuickBooks Desktop is the Undeposited Funds account. This is generally the reason why most of your sales transactions fall under this account.

You’ll need to make a deposit so you can move the transactions to the bank account where they belong. After moving all the funds from 2015, you can proceed with reconciling your bank account one year at a time.

To Make a Deposit:

Go to Banking at the top menu bar, click Make Deposits.
In the Payment to Deposit box, select the payments you want to move.
Click Ok.
Choose the Bank account you want to deposit the payment in the Deposit to field.
Pick Save and Close.

To help you out with the reconciliation process, I’ve attached an article below with the detailed steps:

Reconcile an account for multiple months or years of transactions and financial statements

If you no longer wish to use the Undeposited Funds account moving forward, you can opt to change the default account for depositing payments. Here’s how:

From Edit menu, select Preferences.
Choose Payments, then go to the Company Preferences tab.
Mark or unmark Use Undeposited Funds as a default deposit to account.
Click OK.

For future reference, check out these articles:

You can now clear those previous transactions and start anew.

Don’t hesitate to let me know if you have additional concerns. I’m always here to lend a helping hand.

View solution in original post

VivienJ · ‎October 03, 2018

Thanks for visiting QuickBooks Community, Rockwood.

I can provide some details about how the cash flow process works in QuickBooks Desktop.

The default Deposit to account for your invoice payments and sales receipts amounts in QuickBooks Desktop is the Undeposited Funds account. This is generally the reason why most of your sales transactions fall under this account.

You’ll need to make a deposit so you can move the transactions to the bank account where they belong. After moving all the funds from 2015, you can proceed with reconciling your bank account one year at a time.

To Make a Deposit:

Go to Banking at the top menu bar, click Make Deposits.
In the Payment to Deposit box, select the payments you want to move.
Click Ok.
Choose the Bank account you want to deposit the payment in the Deposit to field.
Pick Save and Close.

To help you out with the reconciliation process, I’ve attached an article below with the detailed steps:

Reconcile an account for multiple months or years of transactions and financial statements

If you no longer wish to use the Undeposited Funds account moving forward, you can opt to change the default account for depositing payments. Here’s how:

From Edit menu, select Preferences.
Choose Payments, then go to the Company Preferences tab.
Mark or unmark Use Undeposited Funds as a default deposit to account.
Click OK.

For future reference, check out these articles:

You can now clear those previous transactions and start anew.

Don’t hesitate to let me know if you have additional concerns. I’m always here to lend a helping hand.

lynda · ‎October 03, 2018

Hello @Rockwood: While Viven has given you some key points on how quickbooks works and the undeposited fund acct., I have a few questions (and warnings) for you as you begin to straighten this out.

Has a tax return been filed based upon the records you are working in?
If so, what is the fiscal period of the last good tax return (2017?)
Have you discussed this issue with the CPA who did this last tax return (some of them make adjusting entries to correct undeposited fund balances they see on a balance sheet.

The answers are important to help you through this process and I would hesitate to change any transactions in a closed fiscal period.

If you provide the details, I can provide you with the next steps.

Lynda

Rockwood · ‎October 10, 2018

Hi @lynda

Sorry it took a while to get back to you, I've been trying to pin down everything.

The 2015 and 2016 tax returns were filed based on the records from our Quickbooks. 2017 has not been done as we are still missing expenses. We run off of a Calendar year here, I don't know if that will help, but we are Jan 01-Dec 31.

The last year with a good tax return is 2016.

Thanks again, I really appreciate it.

-

Rockwood

lynda · ‎October 11, 2018

@Rockwood: That helps a lot. This advice comes with me not looking at your books. :smileyhappy:

How were the deposits handled? The ones in the bank account (that should have held the customer payments)? Were they posted just to sales?
How many transactions to you have in undeposited funds?

If the answers to #1 above was "sales" or some other income account (ie just one income account), then you could open each one up and add the customer payments that belonged in that deposit and then delete the line item just to income.

Now, if the answer to #2 is 500-1000, an alternate plan could be do make one large deposit to the sales account, then zero it out to the "sales" or income acct. that the original transactions that hit the bank were posted to. You would be creating a zero blanket deposit and removing all of the hanging undeposited fund transactions and reversing the double entries to sales.

Let me see if I can get my partner, Matthew, @ParkwayInc on board to do a video on this topic this weekend for you to demonstrate the flow. This is something that I know I have had to fix often for customers (it is a service I provide) and I am sure Matthew does too. But it is a common error with Quickbooks users for years. I think a video demo will be helpful than the instructions I provided above. :)

Rockwood · ‎October 11, 2018

@lynda

As far as I can tell, any deposits that were not customers paying for goods and service were never entered in. Any transfers that were done were also never entered. QuickBooks has only been used for keeping a semi-accurate record of customer orders.

We have over 1000 undeposited transactions. And that sounds like a dream. My goal is to get this functional by the first of the year so going forward everyone's lives are just a little easier.

A video would also be greatly appreciated if it's possible. Thank you so much.

-

Rockwood

Topics

Training

Community

Resources

Bank Account Help