QuickBooks is a renowned and respected accounting software developed and marketed by American business and financial software company, Intuit. QuickBooks offers products that are geared towards small and medium-sized businesses. They also provide on-site accounting applications and cloud-based versions that accept and manage invoices, as well as business payments. One of QuickBooks’ main features is its undeposited funds, which will be the main topic of this discussion. Discover how you can use and benefit from QuickBooks and its Undeposited Funds.
What is QuickBooks Undeposited Funds?
Undeposited funds account is the default account for QuickBooks. This feature is where payments from your company are kept until you decide to transfer them into your bank account.
In other words, the Undeposited Funds account is like an online safe where you keep the money that you receive from clients and other external sources until you’re ready to transfer them into your bank account. It’s pretty much like PayPal – minus the hassle and sophistication.
Using and Recording Funds as QuickBooks Undeposited Funds
Before you record your funds, make sure you enter your transactions into QuickBooks the same way your bank did. If your bank considers a group of funds as a single payment, you have to do the same. It will ensure that your online registration for the QuickBooks undeposited funds report is the same as your monthly statement from the bank. Here are some simple steps to follow:
- In your QuickBooks account, click the plus (+) icon at the top portion and select ‘Receive Payments‘.
- Fill in the customer information sheet and the date that the payment was made.
- Choose the specific payment method.
- Enter the check number in the ‘Field-Labelled Reference Number‘.
- Click ‘Deposit to‘ and select ‘Undeposited Funds‘ from the drop-down list.
- Click ‘Save‘ and press the close icon.
Follow the above steps correctly to record your payments as undeposited funds.
How To Clear Your Undeposited Funds in QuickBooks Online?
In the event that you committed an error while recording your undeposited funds, or you executed a deposit transaction without matching the received payment, you will have to clear up your account. Here are a few steps that you can follow to clear your account without going through any hassle. If changes are made as part of a dated review, do the following:
- Head to the menu bar and click the ‘Accountant‘ option.
- From the drop-down menu, select ‘Client Data Review‘.
- Under the ‘Account Receivable‘ group, click the ‘Clear Up Undeposited Funds‘ option.
If the changes are not part of a dated review, use these steps:
- In the menu bar, click the ‘Accountant‘ option.
- Click the ‘Client Data Review‘ and select ‘Clear up Undeposited Funds Quickbooks‘.
Afterwards, make all the necessary changes and select ‘Refresh‘ to save changes. This process is how you can transfer undeposited funds to your bank from Quickbooks.
Entering Undeposited Fund Transactions
To enter undeposited fund transaction to your bank account, do the following:
- Click the banking menu and select ‘Make Deposits‘ from the drop-down.
- From there, click ‘Payment to Deposit‘ and click the ‘Payments‘ option.
- Select the amount that you wish to deposit. Click ‘OK‘.
- Click ‘Deposit to‘ and select the desired bank account from the drop-down list.
- Enter all the required information.
- Click ‘Print‘ and ‘OK‘ to save.
That’s all you need to know when using QuickBooks Undeposited Funds. Know that apart from QuickBooks, there are a ton of other options out there that can help you offer, accept, and manage payments.
The Best Partner to QuickBooks: ReliaBills
ReliaBills is an excellent option and is created to synchronize with your QuickBooks account. We offer a hassle-free system for processing and managing invoices and other payments. If you have multiple clients that you need to bill, we can create an invoice for you and track them at all times.
ReliaBills also sends updates and creates a streamlined process for your receivables. That way, you can send and accept payments without the unnecessary confusion and frustration. The best part is that ReliaBills is FREE! The only time you’ll have to pay is when you want to upgrade your account to PLUS and get paid even faster.
Getting you paid on time is what ReliaBills does best. For more information, visit our website at www.reliabills.com now. For inquiries, send us an email at email@example.com. You can also call our hotline at 1-877-932-4557.