Thank you so much for this!!!! I have searched high and low for this information and here it is. I'm going to look through your other videos to see if you have something that tells me how to remove old transactions from the bank reconciliation. Thanks again!! 😀
So glad I found this video. Thank you for helping me clear up my pages and pages of undeposited funds using a dummie bank account. So glad I know how to properly use QB for 2018 so I never have to worry with this again! Great video!!! Thanks again.
Why not just create a one time journal entry zeroing out the Dummie Bank Account with a corresponding reduction to retained earnings as well? This way it will take the "old" money out of the Quickbooks system without affecting the current year's balance sheet.
Hi Alex. That's definitely something you can do also. The reason I don't give that specific advice is because we have an audience of small business owners doing their own books, new bookkeepers, as well as experienced bookkeepers and accountants. I leave it up to each person to use their judgment or to consult with their accountant to determine whether an adjustment to retained earnings is needed. Thanks for your feedback.
@Veronica Wasek I tried using the dummy bank account method, but the balance sheet still reflects the full amount of undeposited funds that I tried to clear. Any idea what I may have missed? I created the expense/ tried to follow all of the steps. Thank you!
I am just a beginner but I recently watched a video that recommended u 1.back up or export your qbo data, 2. Print all statements 3. disconnect all bank feed automation 4. pause all banking rules currently active or in place THEN after 1-4 apply Veronica's dummy bank account steps to clear out. If u decide to reconnect bank accounts wait a calendar day before connecting Bank feeds & restarting rules. I haven't tried this myself yet but I plan to test over the weekend. It sounds logical. Once I fix I am NOT reconnecting Bank feeds again until I gain practical experience manually enter myself for a while. Recording system shouldn't be auto duplicating anything in my opinion. Just sayin
The last part of your video says it "will" understate income. How does it do that? If you use the same dates, they may not? Is that correct? Before I do it, just want to understand the statement relating to the income. Thanks !!
Super helpful! Can I do the same thing except using the "dummy bank accounts" can I use the "Undeposited Funds Account" and then at the end of the year make an "Owner's Draw" would this have the same effect?
@@5MinuteBookkeeping because that's what another bookkeeper said she does. So, I appreciate you answering my questions but since I just deposited the cash into the undeposited funds would I be able to "remove" it by your method stated in the video from the undeposited funds account? Appreciate your expertise.
Question? I am new to quickbooks. I printed a check out recently by clicking on check and creating it. What I was supposed to do was Assign a vendor and then go into paybills and choose that one and create the check. So now the payment is showing up as a check and not as a bill payment and is on my reports wrong. How do I change it from a check made to bill payment? Check is already mailed at this point. Thanks in advance Lisa
Hi, No matter how old the undeposit funds are, we can always find the original record,Just click it and make a deposit. that’s it, no need to be complicated to clean them up with other ways. Am I right? Thank you
Can payments received through credit/debit cards end up in undeposited funds? Is this actual money that is available to me to be able to transfer to my actual bank account? We only receive payments through card processing. So why do I have a balance in there?
I have been working at the first suggestion. But I have been having a problem that the transactions have not been coming through as matched. What's with that? Some of them do and others don't. Do I need the bank to resend?
If the transactions aren't matched it would be because you are not matching them in the bank feed. Perhaps they are duplicated. Either you are accidentally clicking Add in the bank feed or the transaction was duplicated in QuickBooks. I'm not sure what you mean by the bank resenting.
Hi. I just tried to match the deposit in banking for a transaction (after undoing it before, then redepositing it) but it still shows up in undeposited funds! What am I doing wrong?
I got excited! I recently reconciled the past 6 years up to July 2019 (I know, bad accounting). I thought all was well. But, all the deposits seemingly duplicated into undepositied funds. When I did what you just suggested with the dummy account, even dating the transaction at the end of 2017, it altered my 2019 balance sheet. I've spent numerous hours on the phone with QBO to no avail. If I just delete the deposits, the invoices attached to them also disappear. Any thoughts?
It's hard to answer your question without seeing your books and diagnosing the problem. Tech support probably can't help you. A qualified and experienced QBO ProAdvisor can help you.
@@5MinuteBookkeeping Does this happen only for remove and record method or all methods. Earlier, I saw your post that shows that bank reconciliations are not affected in any way
Hi Teresa. I'm not sure what you did for your deposits to be duplicated in QuickBooks, so I can't provide any specific details on how to clean it up. But, you can void duplicate transactions.
Hi mam .I have one doubt about quibooks online. When Advance received from client, I enter this in as bank deposit. And after completing service I issue an invoice ,that also show deposit amount under the deposit field.later receiving balance amount ,I enter it in the receipt.But there is duplicate entry for advanced received.so how I solve this?
Hi Vinitha. It sounds like you are entering a deposit twice. Be sure to follow the workflow: Step 1 - Invoice Step 2 - Customer Payment Step 3 - Deposit You may need to enter an invoice for the amount of the advance received from the client.
@@5MinuteBookkeeping I learned that if advance received from client is recorded in bank deposit.But client request me to issue invoice that also show advance received in that invoice.so I also show advance received in the deposit field of invoice.then after receiving payment , recorded in receipt payment.then how can I adjust the entry?
Hi. I only do videos about QBO and not QB Desktop. However, the concept is the same in QB Desktop. Check out Hector Garcia's channel for QB Desktop videos
Hi, It was really very helpful video for me. I would like to thanks for such a great video. I have a question, could you please elaborate about QuickBooks payment method and how is it working. If we use this payment method then the payment amount have automatically recorded in check bank account or should we have to record the payment amount in the bank manually? I appreciate for prompt reply😊 Thanks
@@5MinuteBookkeeping Thank you for your quick reply. I meant we are receive payments from customers in check bank account or in un-deposited fund and the method or types of payment showing for that as "check" but I have seen lots of payment received through QuickBooks payment ( debit card or credit card). So my question was the QuickBooks payment directly effect in our bank account? Thanks
I believe I am having the same issue. I have my bank account linked in QBO. I send out invoices and my clients pay online through QB Payments. I was told by support to ignore the deposits that come in from their merchant. However, when I run a report, I still have many payments showing as Undeposited Funds, which is not true. How can those be cleaned up? Do I indeed need to match those deposits in the Bank Account window, like I do manual deposits?
@@sheilab2658 In theory, when you use QB Payments, QBO should automatically post the deposit. However, many times the Deposits and not entered by QBO automatically. That means that you need to go into the Deposits window and record the deposit as you do other manual deposits. Then you would Match them in the bank feeds.
Hi Mohaned. I don't have enough information from your question to be able to answer you. But, generally, you enter an invoice, then you enter a customer payment, and then you enter a Deposit.
Thank you very much. I have been using desktop for 20 years and I cannot stand Online. It's so frustrating. This should help me with my one client that has Online. :) Thank you Thank you.
Dustin, I have the same problem. .Cannot stand the On Line Program. I think it made things much harder than desktop did. Some things just makes no sense to me at all.
Humm!?! I might be missing the point here but surelly a business can be paid in CASH?! And surelly, we can then take that cash and deposit it into the bank account?! But I can't see QBO doing that type of transaction.
QBO has a payment type of Cash that you can use to record a cash payment against an invoice. Otherwise, you can use a Sales Receipt and deposit the funds to a cash account.
@@5MinuteBookkeeping I don't dispute your methods. I only informed that there are other ways also to do it. As a matter of fact every accountant develops certain shortcut methods based on his or her expertise.
@@bhb9926 I didn't think you were disputing my methods. I was just pointing out that after doing hundreds of cleanups, I use two methods. If you have other methods of effectively cleaning up Undeposited Funds in QBO, I would love to learn about them.
This is great but what he's NOT saying is that if there is no invoice to "receive payment" to and to "Match" to then you'll have to create one! So, when looking in the "Banking" tab, called the "Banking Center" by QBO, it's imperative to create a new transaction with all items that have the "Add" or "Record Transfer" button appearing to the right of the item. The workflow becomes easy then. So, for many transactions in which money is going "out" (money out=expense) it's imperative to go to "New" tab, then create an "Expense" or "Bill" if there is no existing expense or bill that was already created. When money is coming in (deposits) then you go to "New" then "Invoice" so the deposit or income can be matched to the invoice.
Yes, that's why I point out that it will do that. It's up to the bookkeeper or accountant to decide if that's the best method, what periods to adjust, and ultimately to make a professional judgment for how it should be adjusted.
I'm finding this tutorial helpful, but I find Eric's "sales pitch" reading of the instructions to be distracting. It makes it difficult to follow the information. A little less energy and more sincerity would be a huge improvement.
Hi Sheri. I'm sorry you didn't like the video. We try to do our best to provide the best content possible while trying to keep things upbeat. Thanks for the feedback.
@@5MinuteBookkeeping I'm sorry that it sounded like I didn't like it. i should have stated that it was very helpful and informative. It led me to watch several others and I plan to use your videos as a resource as I clean up a big mess our accountants have created. Please take this only as a suggestion that may make it easier to focus for the viewer, coming from someone with a very ADHD brain.
Her accent is the cutest! She was so much fun to listen to!
Thank you! I call it my Texas Chile accent :)
@@5MinuteBookkeeping I love listening to her sweet voice!
Thank you so much for this!!!! I have searched high and low for this information and here it is. I'm going to look through your other videos to see if you have something that tells me how to remove old transactions from the bank reconciliation. Thanks again!! 😀
Glad it was helpful!
So glad I found this video. Thank you for helping me clear up my pages and pages of undeposited funds using a dummie bank account. So glad I know how to properly use QB for 2018 so I never have to worry with this again! Great video!!! Thanks again.
You are so welcome! Glad we could help you get off to a great start in 2018. Kudos to you for taking charge of your business finances.
Why not just create a one time journal entry zeroing out the Dummie Bank Account with a corresponding reduction to retained earnings as well? This way it will take the "old" money out of the Quickbooks system without affecting the current year's balance sheet.
Hi Alex. That's definitely something you can do also. The reason I don't give that specific advice is because we have an audience of small business owners doing their own books, new bookkeepers, as well as experienced bookkeepers and accountants. I leave it up to each person to use their judgment or to consult with their accountant to determine whether an adjustment to retained earnings is needed. Thanks for your feedback.
Thanks Alex. Make sense to me.
@Veronica Wasek I tried using the dummy bank account method, but the balance sheet still reflects the full amount of undeposited funds that I tried to clear. Any idea what I may have missed? I created the expense/ tried to follow all of the steps. Thank you!
Kathleen, I recommend that you view the video again and follow the steps and I show in the video. The system works but you have to do every step.
I am just a beginner but I recently watched a video that recommended u 1.back up or export your qbo data,
2. Print all statements 3. disconnect all bank feed automation 4. pause all banking rules currently active or in place THEN after 1-4 apply Veronica's dummy bank account steps to clear out. If u decide to reconnect bank accounts wait a calendar day before connecting Bank feeds & restarting rules. I haven't tried this myself yet but I plan to test over the weekend. It sounds logical. Once I fix I am NOT reconnecting Bank feeds again until I gain practical experience manually enter myself for a while. Recording system shouldn't be auto duplicating anything in my opinion. Just sayin
The last part of your video says it "will" understate income. How does it do that? If you use the same dates, they may not? Is that correct? Before I do it, just want to understand the statement relating to the income. Thanks !!
Hi Dustin. You are correct in that if the adjustment is made in the same period, then it would not understate income. Great catch. Thanks.
We really, appreciate the content you continue to produce!!!
Thank you, Brian.
Super helpful! Can I do the same thing except using the "dummy bank accounts" can I use the "Undeposited Funds Account" and then at the end of the year make an "Owner's Draw" would this have the same effect?
I'm not sure why you would enter an adjustment to the owner's draw account.
@@5MinuteBookkeeping because that's what another bookkeeper said she does. So, I appreciate you answering my questions but since I just deposited the cash into the undeposited funds would I be able to "remove" it by your method stated in the video from the
undeposited funds account? Appreciate your expertise.
I have an undeposited funds issue. Do you have recommended for a bookkeeper if can use?
Hi. Feel free to join my Facebook group and ask for help from a bookkeeper in the group. facebook.com/groups/5minutebookkeeping
Question? I am new to quickbooks. I printed a check out recently by clicking on check and creating it. What I was supposed to do was Assign a vendor and then go into paybills and choose that one and create the check. So now the payment is showing up as a check and not as a bill payment and is on my reports wrong. How do I change it from a check made to bill payment? Check is already mailed at this point. Thanks in advance Lisa
Hi, No matter how old the undeposit funds are, we can always find the original record,Just click it and make a deposit. that’s it, no need to be complicated to clean them up with other ways. Am I right? Thank you
If you can find the original records, it is always best to record each deposit based on the deposit records.
@@5MinuteBookkeeping yes, thank you
Can payments received through credit/debit cards end up in undeposited funds? Is this actual money that is available to me to be able to transfer to my actual bank account? We only receive payments through card processing. So why do I have a balance in there?
You would have a balance in Undeposited Funds if you are entering "Receive Payments" or Sales Receipts in QBO to the Undeposited Funds account.
What if on my qbo the transaction is labeled “transfer: undeposited funds” not uncategorized income
Make sure that you follow the correct workflow that I showed on the video.
Hi, i have a question. After clearing all entries. The undeposited fund should be zero in tha balance sheet right?
Yes, the balance in the balance sheet should be 0 if you clear out ALL entries in the Undeposited Funds account.
What is the difference between a clearing account vs. undeposited funds account?
Undeposited Funds is like a clearing account. QBO uses Undeposited Funds in its A/R workflow.
A clearing account holds transactions temporarily.
I have been working at the first suggestion. But I have been having a problem that the transactions have not been coming through as matched. What's with that? Some of them do and others don't. Do I need the bank to resend?
If the transactions aren't matched it would be because you are not matching them in the bank feed. Perhaps they are duplicated. Either you are accidentally clicking Add in the bank feed or the transaction was duplicated in QuickBooks. I'm not sure what you mean by the bank resenting.
Hi. I just tried to match the deposit in banking for a transaction (after undoing it before, then redepositing it) but it still shows up in undeposited funds! What am I doing wrong?
Did you follow the workflow? Invoice > Customer Payment > Deposit > Match in the bank feed?
I got excited! I recently reconciled the past 6 years up to July 2019 (I know, bad accounting). I thought all was well. But, all the deposits seemingly duplicated into undepositied funds. When I did what you just suggested with the dummy account, even dating the transaction at the end of 2017, it altered my 2019 balance sheet. I've spent numerous hours on the phone with QBO to no avail. If I just delete the deposits, the invoices attached to them also disappear. Any thoughts?
It's hard to answer your question without seeing your books and diagnosing the problem. Tech support probably can't help you. A qualified and experienced QBO ProAdvisor can help you.
@@5MinuteBookkeeping OK, thank you. I'll reach out to an advisor.
Will using the Record and Remove method mess things up if you have already reconciled your bank account?
No, it will not mess up any bank reconciliations.
if the receive paymnet(from customer) is mistakenly recorded in bill payment (from supplier). what is the solution? please help.
Hi. You would need to find the Bill Payment, open it, click More, and delete it. Then you would need to enter the customer payment correctly.
@@5MinuteBookkeeping Thank you.
If you remove and record won't it mess up your bank reconciliation unless you do it before reconciling
You are correct, you would have to fix the bank reconciliation if the transactions have already been reconciled. That's a great observation Vera!
@@5MinuteBookkeeping Does this happen only for remove and record method or all methods. Earlier, I saw your post that shows that bank reconciliations are not affected in any way
I did this and my quickbooks duplicated my deposits. how can I reverse that.
Hi Teresa. I'm not sure what you did for your deposits to be duplicated in QuickBooks, so I can't provide any specific details on how to clean it up. But, you can void duplicate transactions.
@@5MinuteBookkeeping Thank you so much for responding, I hired a lady that knows quickbooks and she deleted all duplicated transactions.
Hi mam .I have one doubt about quibooks online. When Advance received from client, I enter this in as bank deposit. And after completing service I issue an invoice ,that also show deposit amount under the deposit field.later receiving balance amount ,I enter it in the receipt.But there is duplicate entry for advanced received.so how I solve this?
Hi Vinitha. It sounds like you are entering a deposit twice. Be sure to follow the workflow:
Step 1 - Invoice
Step 2 - Customer Payment
Step 3 - Deposit
You may need to enter an invoice for the amount of the advance received from the client.
@@5MinuteBookkeeping I learned that if advance received from client is recorded in bank deposit.But client request me to issue invoice that also show advance received in that invoice.so I also show advance received in the deposit field of invoice.then after receiving payment , recorded in receipt payment.then how can I adjust the entry?
Can you explain how to do this on QB Desktop?
Hi. I only do videos about QBO and not QB Desktop. However, the concept is the same in QB Desktop. Check out Hector Garcia's channel for QB Desktop videos
Hi, It was really very helpful video for me. I would like to thanks for such a great video.
I have a question, could you please elaborate about QuickBooks payment method and how is it working. If we use this payment method then the payment amount have automatically recorded in check bank account or should we have to record the payment amount in the bank manually?
I appreciate for prompt reply😊
Thanks
Hi Rohit. I'm not sure that I understand your question. What payment method are you referring to?
@@5MinuteBookkeeping Thank you for your quick reply. I meant we are receive payments from customers in check bank account or in un-deposited fund and the method or types of payment showing for that as "check" but I have seen lots of payment received through QuickBooks payment ( debit card or credit card). So my question was the QuickBooks payment directly effect in our bank account?
Thanks
I believe I am having the same issue. I have my bank account linked in QBO. I send out invoices and my clients pay online through QB Payments. I was told by support to ignore the deposits that come in from their merchant. However, when I run a report, I still have many payments showing as Undeposited Funds, which is not true. How can those be cleaned up? Do I indeed need to match those deposits in the Bank Account window, like I do manual deposits?
@@rmsresearch9247 See my reply to Sheila B below.
@@sheilab2658 In theory, when you use QB Payments, QBO should automatically post the deposit. However, many times the Deposits and not entered by QBO automatically. That means that you need to go into the Deposits window and record the deposit as you do other manual deposits. Then you would Match them in the bank feeds.
I need to make a deposite 100 USD deposite in 15th and the other 100 USD in 24th
How can i Do this?
Hi Mohaned. I don't have enough information from your question to be able to answer you. But, generally, you enter an invoice, then you enter a customer payment, and then you enter a Deposit.
Thank you very much. I have been using desktop for 20 years and I cannot stand Online. It's so frustrating. This should help me with my one client that has Online. :) Thank you Thank you.
You're welcome!
Dustin, I have the same problem. .Cannot stand the On Line Program. I think it made things much harder than desktop did. Some things just makes no sense to me at all.
Wow! you hit the nail on the head. This was exactly what I needed to hear. And I love your "MovieFone" guy style of delivery :)
Awesome! Thank you!
i need validation code
you need to contact support team. Contact 1800 811 4074. U wud be able to get validation code in 2 mins.
Good tutorial. Look forward to learning more from other videos.
Glad it was helpful!
What program do you use to record your videos?
Hi. I use Camtasia to record and edit my videos.
Great Videos guys ! Keep it up...
Thank you! Will do!
This was very clear. I'll be sharing it with my clients. Thanks!
Thank you Mary.
Awesome video again.
Thanks!
This is great!! I have had this issue for the past 3 years! Thank you
You're welcome. I'm glad it was helpful.
Humm!?! I might be missing the point here but surelly a business can be paid in CASH?! And surelly, we can then take that cash and deposit it into the bank account?! But I can't see QBO doing that type of transaction.
QBO has a payment type of Cash that you can use to record a cash payment against an invoice. Otherwise, you can use a Sales Receipt and deposit the funds to a cash account.
There are other easier and professional ways to rectify such errors quickly in QBO.
These are the two methods I use to cleanup Undeposited Funds after doing hundreds of QBO cleanups. I wish there were easier methods.
@@5MinuteBookkeeping I don't dispute your methods. I only informed that there are other ways also to do it. As a matter of fact every accountant develops certain shortcut methods based on his or her expertise.
@@bhb9926 I didn't think you were disputing my methods. I was just pointing out that after doing hundreds of cleanups, I use two methods. If you have other methods of effectively cleaning up Undeposited Funds in QBO, I would love to learn about them.
extremely helpful!! thank you for posting!
You're welcome :)
This is great but what he's NOT saying is that if there is no invoice to "receive payment" to and to "Match" to then you'll have to create one! So, when looking in the "Banking" tab, called the "Banking Center" by QBO, it's imperative to create a new transaction with all items that have the "Add" or "Record Transfer" button appearing to the right of the item. The workflow becomes easy then. So, for many transactions in which money is going "out" (money out=expense) it's imperative to go to "New" tab, then create an "Expense" or "Bill" if there is no existing expense or bill that was already created. When money is coming in (deposits) then you go to "New" then "Invoice" so the deposit or income can be matched to the invoice.
Thanks for sharing your tips.
Thank you so much!!
You're welcome!
Quick and Easy method leaves you with a random income amount for $300. That's not good.
Yes, that's why I point out that it will do that. It's up to the bookkeeper or accountant to decide if that's the best method, what periods to adjust, and ultimately to make a professional judgment for how it should be adjusted.
I'm finding this tutorial helpful, but I find Eric's "sales pitch" reading of the instructions to be distracting. It makes it difficult to follow the information. A little less energy and more sincerity would be a huge improvement.
Hi Sheri. I'm sorry you didn't like the video. We try to do our best to provide the best content possible while trying to keep things upbeat. Thanks for the feedback.
@@5MinuteBookkeeping I'm sorry that it sounded like I didn't like it. i should have stated that it was very helpful and informative. It led me to watch several others and I plan to use your videos as a resource as I clean up a big mess our accountants have created. Please take this only as a suggestion that may make it easier to focus for the viewer, coming from someone with a very ADHD brain.
@@sheriedgecomb877 Thank you for the feedback. I appreciate it. I'm glad that our videos have helped you.