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K
kamos40277-gmail
May 11, 2022
Question

I need help with written checks

  • May 11, 2022
  • 1 reply
  • 0 views

I am getting confused, a couple of clients have written me paper checks, I have gotten their consent to deposit but I've been using the receive payments button then manually putting in their bank info. The money is showing up in the account so I figured it was all going through fine, but then looking at my undeposited funds I see where some are from checks and some are from people who paid online, so when I looked into the help button it said that the money goes to undeposited funds till I deposit the checks into the bank, but what bank? There is no QuickBooks bank so that's why I'm confused. Also it said to reconcile my accounts but what does that do? Sorry for the hundred questions I wish QuickBooks had a better tutorial or even walk through. 

1 reply

G
GlinetteC
May 11, 2022

 

Let me ease your confusion and help you from there, kamos40277-gmail.

 

QuickBooks Online uses a temporary account to hold cash, checks, etc. before you deposit them into the bank. 

 

Undeposited Funds is a holding account for the money you've received and intend to deposit but haven't deposited yet.

 

You'll want to add a bank account without connecting it to the online banking feature in QBO and deposit the checks from the customer's invoice. I'll walk you through how:

 

  1. Go to the Accounting menu.
  2. Select Chart of Accounts.
  3. Click the New button.
  4. Fill in all the necessary details (i.e. Account Type, Detail Type, and Name) of your account.
  5. Select Save and Close.

 

Here's an article for more details: Add an account to your chart of accounts in QuickBooks Online.

 

Now that you have your bank account in QBO, you're now ready to deposit the checks sitting in the Undeposited Funds account. Here's how:

 

  1. Click + New and select Bank Deposit.
  2. From the Account ▼ dropdown, choose the account you want to put the money into.
  3. Select the checkbox for each transaction you want to combine.
  4. Make sure the total of the selected transactions matches your deposit slip. Use your deposit slip as a reference.
  5. Select Save and close.

 

Once you're all set, you can now be ready to reconcile the account.

 

I include some resources about depositing payments into undeposited funds as well as recording payments deposits in QBO:

 

 

That's it! If you have additional questions about the process, just post them here. I'll be happy to assist you again.

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