Clearing up Cash & Cash equivalents/undeposited funds

Thanks for reaching out to us, yasbas.

Let me help you create a journal entry in QuickBooks Online (QBO), so you can bulk expense the cash and cash equivalent amount.

Journal entries are used as a last resort for recording transactions. They allow you to transfer funds between accounts and force your books to balance. 

Here's how to create one:

1. Go to + New and select Journal entry.
2. Select an account on the first line. Enter the amount in the correct column depending on whether you'll have to debit or credit the account.
3. On the second line, select the other account you're transferring money to or from. Enter the same amount in the opposite column depending on if you entered a debit or credit on the first line.
4. Check the amounts and ensure they're balanced.
5. Enter a description in the memo section to know why the journal entry is created.
6. Select Save and close.

Furthermore, I'd suggest seeking advice from your accountant for the appropriate accounts to use and to keep them in order. If you're not affiliated with one, you can utilize our accountant tool to look for one nearby.

Additionally, feel free to check out this article if you want to have an overview of the different areas of your business, including sales and expenses: Run reports in QuickBooks Online.

Fill me in if you have additional questions about managing your expenses in QBO. We're always available to assist you further. Keep safe!

Hi @JaeAnnC 

Thank you for your response. 

Maybe I did not give enough detail to my query. 

In order to clear the 'Cash & Cash Equivalents' account it is clear and obvious the funds would originate from that account. 

The question I was asking is how to expense it because as you rightly said the funds has to be moved somewhere?

Do I create a new one-off account for it?

Do I just put it under 'Expense' account 'uncategorised expenses', 'other general and administrative expenses'??? What would be the most appropiate way to do this given the circumstances?

Also the date of posting would be just before we started digitising our expenses in QBO in order not to affect the current reports of the company. 

Did you ever get a response on this?

Hello, @Georgia123.

I would be happy to assist you further, but I would need more details about what you are referring to. Could you please provide me with more information so that I can better understand the situation and offer you the best possible assistance? 

To add more details, simply click on the Reply button below.

Looking forward to hearing back from you.

@Georgia123 

If this is just a matter of entering expenses, then you can simply use an Expense transaction (New > Expense) to enter expenses.  Your bank account and/or Undeposited Funds account should be overstated as a result of just entering sales.  Select you bank account/Undeposited Funds account under 'Payment account' and under 'Category details' enter the amount of expenses to the appropriate account.  Each expense entry will reduce the balance in the bank account/Undeposited Funds.  If you have expenditures for other items such as assets (inventory, fixed assets, etc.), liability reduction (loan payments, payroll taxes, etc.), or equity (draws/distributions, etc.), those will need to be entered as well.