Do you ever...
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get frustrated when you reconcile your bank statement?
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see a deposit show up in your bank account, knowing that it's made up of several individual payments received in QuickBooks?
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become annoyed with the time it takes to match things up?
We often see business owners struggling with this. You can avoid this frustration simply by using the Undeposited Funds feature.
If you don't use Undeposited Funds, then QuickBooks thinks that each check is deposited to your bank account individually.
Say, for example, that you take two checks to the bank: one check is for $100 and one check is for $200. The bank adds the checks and records a deposit of $300 to your bank account. QuickBooks, however, records individual deposits of $100 and $200. When you're reconciling your bank account, nothing matches up!
What does Undeposited Funds mean?
Think of it as the drawer in your desk that holds the checks you've received until you take them to the bank. Using Undeposited Funds lets you group these multiple payments together as one deposit in QuickBooks.
You must set up the Undeposited Funds feature in QuickBooks. Go to Edit > Preferences > Payments > Company Preferences tab and check the box that says "Use Undeposited Funds as a default deposit to account." Click OK.
The following video will walk you through a mock scenario of how to receive payments using Undeposited Funds.
Additional QuickBooks Tutorial Videos
We hope that you found this helpful! Check out another quick video tutorial we made on How to Manage your Customer and Vendor Accounts.
We love to relay helpful tips to help you to streamline and simplify your bookkeeping. If you're ever stuck or confused about something in QuickBooks, get in touch with us. You're likely not the only business owner with that issue!