How do I set up the undeposited funds account and use it to record my deposits?

The Undeposited Funds account in QuickBooks Online (QBO) is already set up by default, @hpburke. The information below will help you understand how depositing funds works in QBO.

Please note that Undeposited Funds are also called as Payments to Deposit in your chart of accounts. Upon receiving customer payments, you can select Payments to Deposit to temporarily hold these funds before transferring them to your bank.

If you're ready to deposit the payments in your bank account, follow these steps:

1. From the +New button, click Bank deposit.
2. From the Account ▼ dropdown, select the desired deposit account.
3. Select the checkbox of the transaction that you want to deposit.
4. After that, tick Save and close or Save and new.

All payments marked for deposit appear in the Bank Deposit window in QuickBooks. You have the option to combine these payments and deposit them collectively. For more guidance, check out the reference below: Deposit payments into the Undeposited Funds account in QuickBooks Online.

Navigating your financial records can be tricky, but our QuickBooks Live Expert Assisted team is here to provide insightful analysis of your business performance and offer strategic advice to help you make informed decisions.

Additionally, be sure to allocate time to reconcile your bank entries in QuickBooks. Doing so helps maintain accurate financial records and ensures that your bank and credit card statements match.

As you navigate through QuickBooks, count on me for guidance regarding bank deposits and other financial queries. Feel free to share your questions; I'll ensure this conversation remains open. In Community, your aims always receive top priority.