Undeposited funds are working right on Accrual Method reports but not Cash Basis ones. What's up with that?

Hello there, Rodger Asai. I appreciate you for posting here.

QuickBooks Desktop reports generate figure depends on the transactions added. One of the factors causing the report to display an incorrect amount of information is the date set up. With that, let's ensure to set the correct dates when selecting Cash Basis. 

We can go ahead and review your transactions. Then, make sure the reporting period is properly set up. If the same thing happens, I recommend performing Verify and Rebuild data in your QuickBooks Desktop. This will fix fatal and minor company file issues.  

Verifying the file helps detect the damaged data. Here's how:

1. Click File at the top menu.
2. Go to Utilities. Then, select Verify.

Rebuilding fixes the damaged data detected. Below are the steps:

1. Click File at the top menu.
2. Still, in the Utilities, select Rebuild.

To learn more about handling reports, you can check these articles:

• Customize reports in QuickBooks Desktop. 
• Understand reports. 

Keep me posted if you have other questions about QuickBooks. I'm always here to help. Stay safe always and take care.

That sounds good - I will do the verify & rebuild) but where is the place one ( "With that, let's ensure to set the correct dates when selecting Cash Basis. ") sets up an effective date for Cash Basis?   I thought it was all or nothing.

Thank you for the quick answer.

Thanks for getting back on this thread, Rodger Asai.

I'm here to share some details about the difference between the accounting preferences in QuickBooks.

When using the Cash basis accounting, income and expenses affect the report at the time you receive a payment or pay a bill. If you create a transaction with a date of 12/31/2020 and a due date of 2021, it'll be posted on your 2021 reports. On the other hand, the Accrual basis preference follows the date when a transaction is created. Thus, you'll have to ensure the correct dates are set.

For more details, please check out this article: Differentiate Cash and Accrual Basis.

I've also included an article that'll help you learn how cash and accrual accounting methods affect sales tax: The Accounting Method You Use.

Please do keep me posted if you have additional questions about accounting methods. I want to ensure everything is taken care of.

We are having the same issue with Quickbooks online, we converted from desktop last year and deposits from  pre coversion are not listed in undeposited funds leaving us with over an $8 million dollar balance on a cash basis,  Any ideas?

Hi there, @Finni.

I'm determined to ensure we can figure out what's causing the issue with your Undeposited Funds account.

Most common issues in QuickBooks Online are usually a result of too much accumulated historical data. Whenever you visit a website, it saves some information from the web page in its cache and cookies. These files allow the websites you visit most often to load faster. Not to worry, clearing them will do the trick.

First, let's try accessing your account through an incognito window to rule out the possibility of a webpage issue. You can refer to these shortcut keys to open an incognito window in all supported browsers:

• Chrome: Ctrl+Shift+N
• Firefox: Ctrl+Shift+P
• Safari: Command+Shift+N

If it reports your UF account correctly, switch back to your regular browser. Then, clear its cache. This way, you can access QuickBooks with a clean slate. You can also use a different supported one.

Additionally, this article provides further information on how the accounting method affects your income and expenses: Choose Between Cash and Accrual Accounting Methods.

Get back to me if you have follow-up questions about running reports. I'd be glad to assist you further. Keep safe and have a good one.