Undeposited Funds on Balance sheet

simtreasurer86 · ‎July 22, 2021

I have an amount in Undeposited Funds on the Balance Sheet. The amount is for several transactions that have been reconciled. How do I clear this since it has been reconciled?

Angelyn_T · ‎July 22, 2021

I'll help you with fixing the amount showing up on your undeposited funds, @simtreasurer86.

You have two options to resolve the undeposited amount reflected on your Balance Sheet report. First, you can undo your reconciled period, then deposit the amount to the desired bank account. Once done, redo your reconciliation to balance your transactions.

The Undo option for a reconciled period is currently available in QuickBooks Online (QBO) Accountant. For now, you can invite one to your company, and let him or her undo the reconciliation period at once.

Sign in to your QBO account.
Click the Gear icon, then click on Manage Users.
Go to the Accounting firms tab, and click the Invite button.
Enter the accountant's information.
Click Save.
Let your accountant undo the entire reconciliation.

Otherwise, you'll need to undo the reconciled transactions one at a time. You can use this article for reference: How to Unreconcile a Transaction or Undo a Reconciliation.

The second option is to use journal entries to transfer the funds to your bank account. For this, I recommend seeking assistance from your accountant in selecting the correct accounts under the Credits and Debits section.

Aside from the solutions added above, you can also review the topics from this link for more tips about handling your other bank transactions in QBO: Find help with bank feeds and reconciling accounts.

If you have any other questions about handling your bank transactions or reports, let me know by adding a comment below. I'm more than happy to help. Keep safe!

View solution in original post

Angelyn_T · ‎July 22, 2021

I'll help you with fixing the amount showing up on your undeposited funds, @simtreasurer86.

You have two options to resolve the undeposited amount reflected on your Balance Sheet report. First, you can undo your reconciled period, then deposit the amount to the desired bank account. Once done, redo your reconciliation to balance your transactions.

The Undo option for a reconciled period is currently available in QuickBooks Online (QBO) Accountant. For now, you can invite one to your company, and let him or her undo the reconciliation period at once.

Sign in to your QBO account.
Click the Gear icon, then click on Manage Users.
Go to the Accounting firms tab, and click the Invite button.
Enter the accountant's information.
Click Save.
Let your accountant undo the entire reconciliation.

Otherwise, you'll need to undo the reconciled transactions one at a time. You can use this article for reference: How to Unreconcile a Transaction or Undo a Reconciliation.

The second option is to use journal entries to transfer the funds to your bank account. For this, I recommend seeking assistance from your accountant in selecting the correct accounts under the Credits and Debits section.

Aside from the solutions added above, you can also review the topics from this link for more tips about handling your other bank transactions in QBO: Find help with bank feeds and reconciling accounts.

If you have any other questions about handling your bank transactions or reports, let me know by adding a comment below. I'm more than happy to help. Keep safe!

simtreasurer86 · ‎July 22, 2021

Thank you @Angelyn_T . I will reach out to QBO accountant for assistance.

suzcameron · ‎March 10, 2025

My undeposited funds for a client does not match the balance sheet. Therefore i have payments sitting there that add up to a different amount than my GL. How do i handle this?

ClaireSamanthaS · ‎March 10, 2025

We can undo the recorded check transactions and accurately deposit the transactions that are still undeposited. This ensures they won't appear twice in QuickBooks, keeping your financial records clear and correct. I'll provide further information on this below.

In QuickBooks Online (QBO), the Undeposited Funds account holds transactions representing customer payments that have been received but haven't yet been deposited into your bank account.

The Undeposited Funds and Balance Sheet will not match due to several scenarios:

If you have transactions that exist both in Undeposited Funds and Checking or Savings Account. To resolve this, you can delete the transactions in your Checking or Savings account and move your Undeposited Funds to the appropriate account by making a bank deposit including the bank or processing fees.
If you have transactions in Undeposited Funds that we have not deposited to the appropriate account. To resolve this, simply make a bank deposit.

To learn how to make a bank deposit, you can refer to this article: Record and make bank deposits in QuickBooks Online.

Next, begin manually reconciling your bank transactions. Ensure that the initial balance in QuickBooks matches the balance shown on your bank statement. Take note that you can seek assistance from your accountant. They ensure accuracy when adjusting entries and can discern the implications of undoing a reconciliation, ensuring that the integrity of the financial records is maintained.

Through this process, you can thoroughly run your balance sheet amounts to ensure that every transaction is accurately captured and properly classified.

Financial reports in QuickBooks give you tons of great info about your business. There are many ways to customize your reports. You can refer to this comprehensive article: Customize reports in QuickBooks Online.

I'm always available if you need clarification on managing your transactions or have more questions about QuickBooks-related concerns. Please remember that you can visit our Community Forum or kindly click the Reply button below. I'll be here to lend a helping hand.

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Undeposited Funds on Balance sheet