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Rose-A
Moderator

Cash from Square import showing up in Undeposited Funds

Hi, Ehersheybergs.

Thanks for looping in. Let's get these transactions matched in QuickBooks Online.

 

If these transactions are from the bank feeds, you can only match one transaction to multiple transactions that are in QuickBooks since matching cash sales in a batch isn't an option for now.

 

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You may find these articles helpful:

 

For account-related discussion, feel free to reach out to our QuickBooks Online Support.

 

  1. Sign in to your QuickBooks Online Company.
  2. Click (?) Help at the upper right corner.
  3. Select Contact US on the pop-up.
  4. Enter a brief description of your concern then hit Continue.
  5. Click Get a callback.
  6. Enter your contact information.
  7. Select Call me.

I'd be more than willing to lend you a hand if you need more help in matching transactions in QuickBooks, please let me know. Have a good one.

Anonymous
Not applicable

Cash from Square import showing up in Undeposited Funds

So it seems that no one at SQUARE or QUICKBOOKS is able to understand the problem much less give us a way of resolving this. I am unsure as to how to go about clearing all the Undeposited Funds from cash transactions at this point, was anyone able to get this done?

 

 

Adrian_A
Moderator

Cash from Square import showing up in Undeposited Funds

We can create a clearing account and a Journal Entry to clear the Undeposited Funds, emersonrharo.

 

Before doing so, I'd recommend reaching out to your accountant to guide you with the process to prevent future issues.

 

Here's how to create a clearing account: 

 

  1. From the Accounting tab, select Chart of Accounts.
  2. Click the New button.
  3. Select Bank as the Account Type.
  4. Select the Detail Type.
  5. Enter the account name.
  6. Select when do you want to start tracking your finances.
  7. Click Save and Close.

Afterwards, you can now create a Journal Entry. Before that, we'll need to know the total amount in the Undeposited Funds. 

 

  1. Click the + New button and select Bank Deposit.
  2. Get the total amount under the Select the payments included in this deposit section.
  3. Hit X to exit the page.

 

Then, here's how to create a Journal Entry:

 

  1. Click the + New button, and then Journal Entry.
  2. Select Undeposited Funds on the fist line. 
  3. Enter the amount you noted earlier in the CREDITS column.
  4. In the second line, DEBIT the clearing account with the same amount.
  5. Click Save and close.

 

We'll have to make a deposit to move the amount to the correct account.

 

Take note: Make sure to select the bank account when recording customer payment. This is to avoid the transactions to be deposited in the Undeposited Funds.

 

I'm always right here if you still need help when making a deposit. Thank you!

SLErin
Level 2

Cash from Square import showing up in Undeposited Funds

Not sure if this is still an active issue for you or not, but I was told today that cash transactions do not automatically record in QBO like the CC transactions do, because QBO cannot verify that the cash was deposited each night and to which account. Very flimsy answer in my opinion, but I guess cash is not as verifiable as credit card processing. So essentially, this Sync with Square only does half the job for you. Cash deposits will still have to be manually recorded each day, and if you are like me and have tons of daily cash transactions, this will be a hefty manual job. 

judi-ogd
Level 1

Cash from Square import showing up in Undeposited Funds

I see the same thing.

Processing Square Credit card transactions create an invoice, a deposit, and deposit to the bank account I have chosen in the apps.

 

However, All of the cash transactions go right into the Undeposited funds.  What I normally do is use cash to pay contractors for their work, and so I normally pay that out of the "cash" account in the chart of accounts.  I guess what I'll start doing is making a transfer from "undeposited funds" to cash once a week and that should clear it up.  If I deposit cash in the bank, I'll do it from the cash account.  

 

Does that work for anyone else?  Any other suggestions?

JonpriL
Moderator

Cash from Square import showing up in Undeposited Funds

Hello there, @judi-ogd!

 

You're on the right track, creating a transfer fund or a deposit transaction would allow you to transfer from your undeposited funds account to the correct cash account.

 

Even if you have set a deposit cash account, it'll still post the payment into your Undeposited or Square funds account by default. You can read through this article to learn more: Sync with Square - Default Accounts and Names.

 

Lastly, here are helpful articles you can read for ideas to help manage your sales in QuickBooks: Sales and Customers for QuickBooks Online.

 

If there's anything else that I can help you with, let me know in the comments. I'll be here to lend a hand.

JRVegas
Level 1

Cash from Square import showing up in Undeposited Funds

Hi Briana,

Hope all is well. Was your issue reconciling square cash sales into QuickBooks ever solved? I hope so. I'm having the same issue. Can you please share your experience in how to solve this issue?

 

J R 

mustardseedsoapco
Level 1

Cash from Square import showing up in Undeposited Funds

The original issue has NEVER been resolved.  I am having the same issue - 5 years latter.  Poor support and poor development.

You are all completely missing the OP original issue.

She clearly stated she has square synced if you fully understand how and what square does you would likely be able to resolve this issue and work on a fix for your customers using square app.

Square is a merchant processor and processor for customers who use POS.  These customers generally have not only an online store but an actual BRICK & MORTAR physical location.  Who obviously take not only CC payments but CASH payments.  

Now because Square is our POS - EVERY SINGLE TRANSACTION whether that be cash, cc, cash app, or apple pay gets processed through Square.

Now remember Square is synced with QBO everything thats been done in square shows in our app transactions in QBO.  

Because we are businesses that take cash as payment, we also have to have a PHYSICAL bank to deposit that cash into, and I'm sure like myself most of use our physical bank to handle other transactions as well.

Our physical bank is also synced with QBO so needless to say but I will, all the transactions download and synced from our physical bank are showing up in QBO in that specific bank AS WELL AS the undeposited funds.

To do steps that each of you are saying to do would create a HUGE discrepancy in our record keeping and completely throw our reporting financial numbers off creating a massive overage of actual cash.

The cash cannot physical be "DEPOSITED" into square, Square is not a PHYSICAL bank.  So the cash has to go into our physical bank and register to reconcile.

 

We need to be able to have not only square syncing but also our physical bank syncing.

5 years later and this is still an enormous problem.  I have huge amounts of undeposited CASH funds to get out of that register, but because my physical bank is synced with QBO those same CASH funds are already showing in the register because the sync that happened throughout the day pulled that information into QBO. 

 

Rasa-LilaM
QuickBooks Team

Cash from Square import showing up in Undeposited Funds

Keeping transactions accurate and well-organized will enhance financial management, mustardseedsoap. Let me assist you in getting to the right channel that can guide you in managing your transactions from Square and QuickBooks Online (QBO) effectively.

 

Based on the outlined scenario, I suggest contacting our QuickBooks Online (QBO) Care Team for additional assistance. They'll review your transactions and help you clear the cash amounts in your undeposited funds account. Reaching out to them will ensure your financial records remain accurate.

 

Here's how to contact us:

 

  1. Navigate to the Help icon in the upper right of your company to open the support window.
  2. In the Search tab, type a brief description of your concern in the field box and click the Contact Us button to view the support options.
  3. Choose Chat to start a conversation or Callback to speak with an agent.

 

I’ve included an article that addresses common questions regarding the Connect to Square app feature. Click this link to access the full information: Connect your Square account to QuickBooks Online.

 

Feel free to refer to these resources later for guidance on how to classify entries and balance your bank and credit card accounts:

 

Fill me in if you have other product-related concerns or questions about keeping your books in order. We're here to provide the help you need.

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