I’m Bobbie with Bookkeeping Confidential, here with you today. We are a full-service virtual bookkeeping firm and are here to help you bring profit to your business and eliminate the time and burden of bookkeeping from you. Our contact information is here if you’d like to jot that down and reach out to us or please visit our website and click on the contact tab. Today, we’re going to talk about Undeposited Funds.

If you’re new to QuickBooks or to talk about QuickBooks or any kind of bookkeeping, undeposited funds can be something of a challenge. Let’s go over here to QuickBooks. We have our sample company and I want to show you on the balance sheet, where you’re going to find that you have undeposited funds. And, this just means that the money in QuickBooks is not in the bank. So, let’s get how this happens.

Follow along with video below

As always, you want to invoice your client. This is how to prevent undeposited funds. I like Amy’s Bird Sanctuary. And another thing, over here you’re going to notice this popped up when I hit Amy’s Bird Sanctuary. That just means that there are some pending charges that have not been invoiced to her as yet. So, let’s go ahead and do that. This is a good reminder. So, she has to pay for this custom. And then we’re going to add some gardening to it, So Amy owes us a total of $600. Save and close.

Amy’s paid you by check. Now, you’re going to receive payment, Amy’s Bird Sanctuary, add payment date, select check as payment method and we invoiced her the $600. So, we’re going to pay her that. We want to make sure it says deposit to undeposited fund. Save and close.

Then, you’re going to go back to the plus sign and select bank deposit. These are checks that you probably have sitting on your desk that need to get into the bank. So, we’re going to click on them. And, it’s going to total $2,662.52 and that should balance to what’s sitting on your desk.

There you go. You have now handled funds – it’s now zero.

Thank you and I look forward to hearing from you.

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