QuickBooks Tip of the Month: Clean Up Undeposited Funds

QuickBooks Tip of the Month: Clean Up Undeposited Funds

Old payments stuck in Undeposited Funds? It’s a common issue—and it can overstate your income. Here’s how to fix it:

To Clear Undeposited Funds:

1. Go to + New> Bank Deposit
2. Check payments under Undeposited Funds
3. Choose the correct Bank Account
4. Click Save and Close

If the deposit was already reconciled:

Option 1: Replace It

• Create the correct deposit (same date)
• Delete the incorrect one in the bank register
• Re-check the box to mark it “R”
• Revisit the Reconciliation screen

Option 2: Zero Deposit Fix

• Create a deposit with correct payments
• Add a negative line under “Add funds to this deposit” using the same income account
• Click Save and Close

Pro Tip:

Run a QuickReport on Undeposited Funds to catch old, lingering payments.

Need help cleaning up your books? Schedule a meeting today!