How to get rid of Undeposited Funds amount in QuickBooks?

QuickBooks Help QuestionsHow to get rid of Undeposited Funds amount in QuickBooks?
Ben asked 3 years ago

I recently took over the QuickBooks and prior bookkeeper had made the deposits but did not check off the customer’s deposit amounts in the Undeposited Fund (UF) account.

admin Staff replied 3 years ago

This happens too often in QuickBooks. If a lump bank deposit was made (either from bank feed or create deposit) without selecting the customer received payments from Undeposited Funds, then the deposit likely posted to an income account. It means double records to income account for the same transaction. In other words, Undeposited Funds Account on the Balance Sheet is in current assets category like bank type. Now, if that does not really exist at all, you will be crediting UF account and be debiting somewhere like in Profit and Loss account. If that is from prior tax periods, then tax return may be all wrong. This needs consulting with your Accountant.



Your Answer

16 + 1 =