Learn the best ways to use the undeposited funds account to receive payments in QuickBooks Online (QBO)
No doubt, QuickBooks is the world’s best accounting and bookkeeping software made by Intuit. Talking about the undeposited funds account in QuickBooks Online, it serves a special function, as it is a special temporary account that is used by the QuickBooks accounting software for holding the payments that are received from invoices before the user deposits them into the bank account. If you are one of the users who import payment data from external processing services and do not process transactions via QuickBooks payments, then this workflow is essential for you.
In today’s article, we are going to discuss the use of the undeposited fund’s account, in order to receive payments in QuickBooks Online. Thus, if you are looking for the entire process to use the undeposited funds account to receive payments in QuickBooks online, then your search ends with our article.
Go through the article till the end, to learn the process. However, for expert assistance, you can chat with us and discuss your issue with our QuickBooks support team of experts and certified professionals.
Significance of Undeposited Funds Account
As stated above, undeposited funds is an account in QuickBooks accounting software that holds funds from the payments until they are deposited in the bank account. As per the experts, the user can’t deposit the fund directly to undeposited funds. The reason behind this is that it is just a temporary account which means that the user can deposit the funds in a single transaction only after he/she takes the deposits to the respective bank account.
Making a lump sum payment is beneficial in a way that the transactions remain itemized in the account register, but all the user is supposed to do is check the lump sum deposits when reconciling transactions with the statements of the bank.
You may also read: How to convert your QuickBooks Desktop file to QuickBooks Online?
The reason behind using an Undeposited Funds Account
Many QuickBooks users ask this question very often why they should make use of the undeposited fund’s account? The undeposited fund’s account is an internal “other current asset account” crafted by QuickBooks. For instance, if the Undeposited fund’s account is a lockbox or safe, where the user keeps the payments till the time they are not deposited in the bank account. This account actually serves as a default “deposit to” account and is designed in a way to work with the receive payments and bank deposit features, in order to complete the invoicing process. The user can make use of this account for single or group payments.
Steps to enter transactions with Undeposited Funds
If you want to enter the transactions with undeposited funds, you need to follow a step-by-step process. The steps involved are as follows:
- The very first step is to click on the Lists menu, followed by selecting the Items option.
- The next step in the process is to select the option of payment from the Type drop-down list and then further add any additional information for the transaction if needed.
- Lastly, the user is supposed to tap on Account drop-down list and also select Undeposited Funds, followed by hitting OK.
How to Deposit Undeposited Funds in QuickBooks?
The user can implement the steps below for depositing an Undeposited Funds Account to Receive Payments in QuickBooks Online–
- To begin with, the user is required to hit the Banking tab and then select the Make Deposits option.
- The next step in the process is to select the payments from Undeposited Funds that the user wishes to deposit. In case the Payment to Deposit window does not open on its own, then, in that case, the user is required to select Payments on the Make Deposits window.
- Now, the user should hit the OK button.
- Moving ahead, click on the Deposit To list and then opt for the bank account for the deposit purpose.
- Once done with that, the user has required to type in the date in the ‘Date field‘ and then if permitted enter any additional payments to deposit.
- The next step to be performed by the user is to click on the Print option so that the user could have a hard copy of the deposit slip.
- The last and final step is to hit OK so that transaction could be saved and after that take the slip to the bank and deposit the funds into the account.
The user can make the best use of the Un-deposited Funds account, in case the company accepts the transactions all day by cheque or cash and later on deposit them to the bank in a single trip. Companies that accept only credit cards as a payment option, deposit one transaction at a time straightforwardly to the bank account, and other online payments basically do not use the Undeposited Funds account.
If you are not using undeposited funds account just because of the unawareness of the procedure to use it, then reading this article will help you to make the best out of it. However, if you any of your queries remained unanswered regarding the undeposited fund’s account, then do not hesitate in discussing it with our QuickBooks Online Support team.
Simply chat with our experts and our certified QuickBooks professionals will be there to provide you with proper support in a single chat. Hope this article will be helpful for you. Thanks for your visit.