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D
DDen
April 13, 2023
Question

Balance in Undeposited Funds from Previous Period to be Cleared

  • April 13, 2023
  • 1 reply
  • 0 views

I was hired to clean up some bookkeeping, but have this main issue I am not sure how to resolve.  The accountant had previously just recorded deposits as income instead of receiving payments to undeposited funds, and then depositing. The bookkeeper at the time did 'receive' the payments to undeposited funds, but that's all.  So now I have a huge list of 'unpaid invoices', and a large balance in undeposited funds from the previous period. How can I clear this without messing up the books?

1 reply

A
Alex M
April 13, 2023

Hi there DDen,

 

It's vital that all your transactions are entered correctly so that your books can be well balanced. QuickBooks Online is a great tool able to help you keep track of the sales and expenses made by your company so you can see its profit. I can point you in the right direction for assistance with these transactions.

 

If the deposits are being recorded as duplicate income, then they would need to be the first thing to look at to make sure it all affects the correct accounts so they can be applied to the invoices that were left open, or the undeposited account for those payments that were just left undeposited.. if you don't want to affect previous transactions, then journal entries or other similar transactions may be needed to move money from one account to another.

 

For further assistance, I recommend speaking to an accountant. They'll be able to use their expertise to help view the books as they are with you in order to assist in formulating the best game plan so you can get everything correctly balanced, and the payments deposited. You can invite your accountant to QuickBooks Online so they can see your books by going to the My Accountant tab. You can also find an accountant near you that has experience using QuickBooks by clicking the Find a Pro to help button located in that section or click here to view our Find an Accountant website.

 

If you have any other questions, feel free to reach out here.

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