Before we jump on to resolve your query how to clear undeposited funds in QuickBooks Desktop it is important to understand what it is. If you have Undeposited Funds in QuickBooks, it’s time to clear them out. Undeposited funds are a warning sign that you may not be using your money wisely.
What are Undeposited Funds in QuickBooks
An undeposited account acts as a hoarding account within the program. This serves as your default account to hold all your payments. Generally when you receive payment then the same gets transferred to an undeposited account within QB. When the same gets deposited in your bank, then you clear off your undeposited account for the said amount. If by any chance you forget to clear off these funds then they pile up within your program causing mismatched entries within your statement.
How do Undeposited Funds Work in QuickBooks?
The functioning of undeposited accounts within QB is not at all complicated. It’s a simple 2 step process that goes like this:
- Deposit money within the undeposited account and
- When you are ready to deposit the same amount in your bank then you clear off the same amount from your undeposited account.
How to Clear Undeposited Funds in QuickBooks Desktop?
The amount will stay within an undeposited account until you are ready to deposit the same in your bank. Once done you will have to clear off them from your undeposited account.
Steps to Clear Undeposited Funds in QuickBooks
- By having your QuickBooks account logged in, click on the banking
- Choose to make deposits from the list of options provided.
- Locate the payment that would like to deposit within your undeposited account. To select the payment, navigate from the payments tab and choose to click on the make deposits button.
- When you are done with the selection, hit Ok.
- You will now see the deposit window being displayed. Press on the deposit to the button and choose your preferred bank from the list of drop-down options.
- Choose the date of deposit and any other relevant info. that you would want to record.
- Want to print a deposit slip, just to maintain a physical record of all your deposits? Well, you can do so. Simply give the print command from your displayed window and your deposit slip will be printed.
- To save your deposit, simply hit OK and your funds will be successfully cleared from your undeposited account.
How to Enter Funds within Undeposited Account
To transfer funds received and to create an entry within your undeposited account, you need to go through the following steps:
- Launch your QuickBooks accounting software.
- From the top navigation menu click on the list
- This will open up a drop-down menu. Choose the “Items” tab from the list of options provided.
- Choose the type of payment you would want to specify.
- Provide all the necessary detail about your funds along with all the relevant info.
- Select the “Accounts” option and choose your account type for an undeposited account.
- Click OK and your entry will be successfully created as an undeposited fund.
Hope you are able to fix your issue. But if in any case your query “How to clear undeposited funds in QuickBooks desktop” is still not answered then we would request you to talk to our Askforaccounting consultant experts team. Our QuickBooks Consultant certified Experts has years of experience in dealing with program-related issues, thus wait no longer and call them now.