Why do my deposits appear on my balance sheet as undeposited funds, and how do I correct this issue?

Welcome to the Community, janeene. Let me share some information about undeposited funds and how you can transfer them into your bank account in QuickBooks.

The Undeposited Funds serve as a withholding account. It holds customer payments in QuickBooks until you deposit them at your real-life bank. This explains why those deposits appear as Undeposited Funds on your balance sheet.

If the amount on your Undeposited Funds was already deposited in your real-life bank, you can follow the steps below to record the deposit to your bank in QuickBooks.

1. Go to the + New menu, and choose Transfer.
2.  Click Transfer Funds From ▼ dropdown. Then, select Undeposited Funds.
3. Pick the account you want to move the funds to on the Transfer Funds to ▼ dropdown.
4. Enter all the essential details required. Ensure that the entered details are accurate.
5. Hit Save and close.

For more information about the Undeposited Funds account, you can check this article: What’s the Undeposited Funds account?

Remember that moving your funds from Undeposited Funds to your bank in QuickBooks is for recording purposes only. You still need to deposit the amount to your physical bank.

In addition, you can check this article as a reference on how to combine multiple transactions into a single record, so QuickBooks matches your real-life bank deposits: Record and make bank deposits in QuickBooks Online.

Feel free to reply to this thread if you have more questions regarding undeposited funds in QuickBooks. We're one click away.