We have been using QuickBooks Online Plus for a short time. We are using cash accounting. This month end, there is a small amount in the Undeposited Funds account which shows up on the balance sheet. It represents 3 checks we received near the end of the month, which were not deposited into our bank account until the beginning of the next month. Is it proper accounting (under cash accounting) to show this "Undeposited funds" on our balance sheet under Current Assets? Or should we eliminate this amount using a journal entry and not reflect the income until we have made the deposit? Thanks.
