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briana_tt
January 25, 2019
Question

Cash from Square import showing up in Undeposited Funds

  • January 25, 2019
  • 3 replies
  • 0 views

I am having a problem with accounting when it comes to Square and being able to zero out (maybe that is not the right term) my Undeposited Funds line in the register. I use the Sync with Square app and it works OK, all the funds go into Undeposited Funds, and once those sales are matched and the deposit is made to my bank account, they basically zero out (it shows them with a C or R depending on if I have reconciled or not). However, the cash sales made with Square do not do this, and as we make only one or two deposits a week, those deposits don't match 1:1 with the cash sales in the Undeposited Funds, so I'm showing a dollar amount there as unaccounted for that is actually totally accounted for. 

 

I saw in another thread to delete these as they are probably duplicates (and they do seem to show in the checking register with the deposited Square funds ...), but I'm not sure that's the right move ... I'm fairly new to this and don't want to mess anything up, but also really need to figure this out ASAP as it's driving me a little nuts.

 

Any thoughts on how to solve this?

 

    3 replies

    J
    JamesDuanT
    January 25, 2019

    Hello Briana,

     

    We can create a lump sum deposit (for your cash sales transactions) that matches the one that flows from your bank.

    1. Click the Create menu (+) and select Bank Deposit.
    2. Enter the bank account in the Account field.
    3. Mark the cash sales transactions that show under the Select the payments included in this deposit section. Make sure you select the transactions that are accounted for the deposit you've made on your actual bank.
    4. Make sure the total amount is correct.
    5. Click Save and close.

    From there, you should be able to match deposit from your bank to the one that's in QuickBooks.

     

    You can also provide additional details such as screenshots if you need further assistance with this.

    B
    briana_ttAuthor
    January 25, 2019

    Thank you, James.

     

    If I do this, will it show additional funds in the account register for my bank account  in Quickbooks (in this case checking). Because the cash has been actually deposited into my actual checking account, and the Quickbooks account register and the actual bank balance are matched up. So I don't want to do anything to disturb that.

     

    For example, lets say that I made a bank deposit on Thursday for $100, and that deposit is made up of 50 cash sales of $2 each from the previous Thursday through Wednesday. The $100 is in my bank account (on Quickbooks and in real life), but is also still showing in Undeposited Funds. If I follow your steps, will I reconcile / zero out my Undeposited Funds account register without adding new funds to my Quickbooks Checking account register?

     

    Thank you for the clarification.

    B
    briana_ttAuthor
    January 25, 2019

    Follow up: I took your advice, following the steps you laid forth, and it did not do at all what I need it to do.  

     

    To reiterate:

    1. Sync with Square drops money into Undeposited Funds when it syncs each night (regardless of settings).

    2. When the credit card sales are credited to my checking account, I am able to match them in bulk and they are accepted into my Account Register on the Checking account line

    3. The problem is with cash sales. Cash is deposited physically in my bank account as lump deposits and those deposits recognized in my Account Register on the Checking Account line. However, each individual cash sale is still hanging out on the Undeposited Funds line of my Account Register. 

     

    If I follow your advice, step by step, the money is then deposited into the Checking line of my Account Register  - causing a huge discrepancy, because that money is already in my bank account, and in the checking line of the Account Register.

     

    Additionally, even though I balance my drawer every evening, and make deposits based on that, the amount Square is importing that's just hanging out in the Quickbooks purgatory of Undeposited Funds does not match the actual cash we deposited / balanced with the cash drawer. 

     

    Can you help me?

     

    Obviously I don't want to put screen shots of my register on the internet.

     

    A
    annilikesbookkeeping
    April 2, 2019

    Pull up the cash deposit transaction. The account used should be Undeposited Funds. I'm attaching an example. I used Petty Cash instead of a checking account just because I didn't want everyone seeing the bank name, but same basic concept. 

    L
    LaChelleH
    June 4, 2019

    Hi Briana,

     

    I am having the exact same issue now, and have hundreds of transactions sitting in undeposited funds that should not be. I think this is 100% the exact same issue you were exploring. Did you ever resolve? If so could we touch base. That would be so greatly appreciated. THANK YOU!

      AlcaeusF
      AlcaeusF
      June 4, 2019

      Thanks for joining this conversation, @LaChelleH.

       

      Just to verify, did you also add the transaction from the Banking page when it was downloaded to QuickBooks? If so, I highly suggest following the steps provided by my colleague @Charies_M to undo the added deposit. Here's how:

       

      1. From the left menu, select Banking.
      2. On the Banking page, select the In QuickBooks tab. Make sure the correct bank or credit card account is selected.
      3. Locate and check the downloaded transaction to unmatch on the Reviewed tab.
      4. Click Undo under the Action column or at the top.

       

      Then, Match them instead of creating a deposit. This will remove them from the Undeposited Funds account and put them in your Checking Accounts register moving forward.

       

      For additional information, check out these articles:

       

       

      That should point you in the right direction. Please let me know how everything goes or if I can be of additional assistance. I'll be here to help. Take care and have a good one.

      M
      MrTizzy
      June 5, 2019

      I know that this is an old thread, but what I've been doing is on Deposit to my checking account, I mark it as a transfer from Undeposited Funds. That draws down the Undeposited Funds with the money you Deposited. That works to the account balance, but it DOES NOT clear out the transactions like Square does for your Credit Card transactions automatically. 

       

      I haven't found any way to actually take the Transfer and match it to specific Square transactions. As a consequence, there are thousands of transactions which are never going to be matched, though the account balance will decrease. 

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