Home > Business, QuickBooks, Uncategorized > QuickBooks Tip – Undeposited Funds Default | Everchange LLC

QuickBooks Tip – Undeposited Funds Default | Everchange LLC

via QuickBooks Tip – Undeposited Funds Default | Everchange LLC.

QuickBooks Tip – Undeposited Funds Default

If you have used QuickBooks, you may have noticed that when you enter customer receipts there is no option to select which bank account the money is deposited to. Not all clients know that the amounts are coded to an account called undeposited funds and sit in that account until you go into the “Banking – Make Deposits” screen and make the official deposit that will match your bank statement.

I have had a couple of clients not know this and their undeposited funds account was huge. Then, the client does not see the deposit in the bank account and enters the deposit a second time by using the Banking – Make Deposits screen thereby duplicating a customer payment. And the undeposited funds account stays large.

To avoid making this mistake, change the default setting in QuickBooks. Goto Edit – Preferences. Highlight Payments on the left part of the screen. Click the Company Preferences tab. Uncheck the box in the Receive Payments section that says Use Undeposited Funds as a default deposit to account. click the OK button.

After changing the preference, you will notice a new drop-down menu on the receive payment screen which allows you to choose your bank account or undeposited funds. When do you use undeposited funds? When you have more than one payment being deposited the same day. For example, if you received 5 checks and those 5 checks are on the same deposit slip that you take to the bank, use undeposited funds. Then click on Banking – Make Deposit, select the payments, click OK, verify the date is correct, verify that the amount on the screen matches the amount on the deposit slip, and save the transaction.

When do you select your bank account? When you only receive and deposit 1 transaction for that day. For example, you receive one check and that one check is listed on the deposit slip that you take to the bank. And in doing this, you avoid having to go to the Banking – Make Deposits screen to make the official deposit

-Our friends at EverChange, LLC are located in Durham, NC and provide expert QuickBooks and Accounting Services.  For more QuickBooks tidbits, feel free to visit their twitter account @EverChangeLLC or “like” EverChange, LLC on Facebook.

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