Undeposited Funds (Customer Deposits in QuickBooks)

We highly recommend using the Undeposited Funds feature in QuickBooks, as it can help prevent issues and improve accounting practices as described below. Please see the following link for more information on what the feature does and why it is important. 

What’s the Undeposited Funds account? (intuit.com) 

Here are a few reasons why you might want to use the Undeposited Funds account in QuickBooks: 

1. Simplify your bookkeeping: Instead of tracking every payment you receive from customers individually, you can group them together in the Undeposited Funds account. This can simplify your bookkeeping and make it easier to reconcile your bank accounts. 

2. Avoid errors: If you record payments directly to your bank account without going through the Undeposited Funds account, you may accidentally double-count the payment or record it in the wrong account. Using the Undeposited Funds account can help you avoid these errors.

3. Improve cash flow tracking: By using the Undeposited Funds account, you can more easily track your cash flow. You can see at a glance how much money you have received from customers, even if you haven't deposited the funds yet. 

Overall, the Undeposited Funds account can be a helpful tool for managing incoming payments and improving your bookkeeping processes in QuickBooks.