This is a long post with several questions - sorry.
We have a Cash Box in our home.
When we started with QBO several weeks ago, I thought the Undeposited Funds could simply be equivalent to our Cash Box, so I entered the amount in the box as the opening balance (equity) of Undeposited Funds.
I have gotten 20 contributions which I've added to Undeposited Funds in QBO and to our Cash Box. Now there are a total of 21 line items in Undeposited Funds - the 20 contributions and the opening balance.
Then I deposited money in our bank.
The amount of the deposit was greater than the 20 contributions by about $500 U.S. but less than the total in the Cash Box.
Now I can't figure out how to enter the Bank Deposit in QBO because:
a) There seems to be no way to split the Opening Balance in the checklist to make up the difference.
b) If I try to bypass the Opening Balance and enter part of it in the table beneath for additional deposits, the system won't let me because the Undeposited Funds is not a bank!!!
c) I can't change the Undeposited Funds account to be a bank.
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I can think of four workarounds and want your opinion:
Do I make a journal entry to split the equity? How? (This feels the cleanest if I can be shown how to do it.)
Do I create a separate account for cash on hand and transfer the $ from the Undeposited Funds to the Cash on Hand as necessary?
Do I create a separate account for cash on hand, edit the transactions so that they are in the cash on hand account, and use it in the future, bypassing the undeposited funds altogether?
A related question to all of this: I experimented and if I deposit two checklisted items, they are not combined in the deposit. Instead, the Bank register is split. There's no way around that, is there? Each of them eventually needs to be resolved.... Given that, maybe the best is to have a separate Cash-on-Hand account?
Oh, well.
Thanks for your patience in reading my little tome.
Any help would be greatly appreciated!
