With an undeposited funds account, you can temporarily hold payments from your business’s customers until you’ve deposited them into your business’s bank account. Undeposited funds accounts are designed to hold customers’ payments. As their name suggests, they are intended for payments that haven’t been deposited into your business’s bank account. Assuming you use this native Quickbooks feature, you may want to run an undeposited funds report.
What Is an Undeposited Funds Report?
An undeposited funds report is exactly what it sounds like: a report showing all of your business’s undeposited funds. Not all businesses use an undeposited funds account. You won’t need to run an undeposited funds report unless your business uses this optional type of account. With an undeposited funds account, your business will temporarily hold customers’ payments before depositing them into your business’s account. Running an undeposited funds report will reveal all of the payments in your business’s undeposited funds account.
Steps to Run an Undeposited Funds Report in Quickbooks
To run an undeposited funds report in Quickbooks Online, log in to your account and select the “Accounting” tab on the main menu, followed by “Chart of Accounts.”
With your business’s chart of accounts pulled up, click the “Action” column next to the “Undeposited Funds.” You can now click the drop-down arrow for your business’s undeposited funds account, and then you can select “Run report.” Quickbooks will generate an undeposited funds report in real time, thus providing you with a snapshot of all payments that your business has receives from customers but hasn’t yet deposited.
How to Customize an Undeposited Funds Report
Keep in mind that, like most other reports, undeposited funds report focus on a specific period. The default period is 90 days. When you run an undeposited funds report, you’ll see undeposited payments from the past 90 days.
You can change the period for an undeposited funds report by clicking the “Customize” option at the top. Just change the period, followed by selecting “Run Report.”
Undeposited funds accounts aren’t destined for long-term use. Rather, you’ll want to deposit the payments into your business’s bank account. You can make a deposit with a bank transfer. In Quickbooks, you can transfer a payment from your business’s undeposited funds account to your business’s bank account. Once transferred, the payment will no longer listed in your business’s undeposited funds account.
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