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Cash Flows Navigation Reports Sales

How does QuickBooks Online produce the Statement of Cash Flow Report?

Statement of cash flow is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents and break the analysis down to operating, investing and financing activities.

First, the report run is based on an accrual basis accounting method in QBO. It is hard-coded so you can not change it to cash basis method nor can be edited for any preferences to classify cash like in QuickBooks desktop versions.

In QBO, they also have the following three standard sections for the cash flow analysis.

  • Operating
  • Investing
  • Financing

It shows the amount of cash earned from profit, where you received additional cash and where your cash was spent. It uses all Bank type accounts from your chart of accounts. It also includes “undeposited funds account” from other current assets type.

The Statement of Cash Flow assumes that all activity through current assets and current liabilities are OPERATING ACTIVITIES. It also includes “accumulated depreciation” from fixed assets type.

Any entries that affect fixed assets (at original cost, less accumulated depreciation) are INVESTING ACTIVITIES. It also includes “other assets” type.

Any entries that affect long term liabilities and equity are FINANCING ACTIVITIES.

Here is how the standardized list of mappings for the different category type assigned to a section of the Statement of Cash Flow in QuickBooks Online.

Here is detail account list of Category Type (Account Type) for the Balance Sheet accounts from the chart of accounts sorted by Activities.

Cash
Operating

Investing Activities

 Category Type
1Fixed Assets (original cost)
2Other Assets
Investing

Financing Activities

 Category Type
1Long Term Liabilities
2Equity
Financing

Example of Statement of Cash Flow Report in QBO:

Profit and Loss Net Income line forwarded to Operating Activities
Statement of Cash Flow Report
Categories
Bank Deposit Deposit undeposited funds

How to enter one bank deposit & match to several different invoices

 

#1 Create Client Invoices

#2 Receive Payment
Select Deposit to: Undepeposited Funds account

#3 Bank Deposit: match several payments for several invoices to one bank deposit slip.

QuickBooks Online: Enter one bank deposit & match to several different invoices

 

Categories
Sales Receipt Sales Receipt 2 undeposited funds

How can I default Sales Receipts to Undeposited Funds account in new QuickBooks Online (QBO)?

The setting for “Deposit to” on the Sales Receipt form is “sticky”.

All you need to do is save your first Sales Receipt to “Undeposited Funds” accoount under “Deposit to” field. Once saved, the next time you open the Sales Receipt screen – it will default to Undeposited Funds account.

Sales Receipt Deposit to Undeposited Funds Sticky
Sales Receipt Deposit to Undeposited Funds Sticky

Categories
Bank Deposit Bank Register Chart of Accounts

How to locate and apply “Undeposited Funds” in new Quickbooks Online?

Receive Payment
Receive Payment

Receive Payment Deposit to Undeposited Funds
Receive Payment Deposit to Undeposited Funds

From the Home page screen

Select Create “+” sign (top middle)

Select “Receive Payment” under Customers heading

Select Deposit to “Undeposited Funds” account

This will create Undeposited Funds as debit balance on the current assets account of the Balance Sheet.

“Undeposited Funds” account balance is like a temporary clearing account.

In order to clear the balance sitting on Undeposited Funds Account, next step is to go to “Bank Deposit” (same + screen > bank deposit under “Other” header) and make deposit to applicable bank account.

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