What is Undeposited Funds and why should we use or not use it?
Undeposited Funds is a holding account. It basically holds the funds from payments received until they are moved into the bank account.
If you have a lot of deposits and need a way to verify that deposits are being made then Undeposited Funds may be a good option. What happens is unless this feature is turn OFF when you go through receive payment the payment amounts will be placed in this Undeposited Funds account. You would then have to go through make deposit to move the payments into the bank account you choose. You can call QuickBooks Support Number to find full details .
If this feature is turned off through the Edit preferences, then once the payment is received it will automatically go into the bank account.
If you don’t have a large number of deposits you may want to turn this feature off. If you have a large number of deposits or you have more than one person entering payments received and another person making deposits this may a great check and balance system for your company. To know more dial