Thank you!!! This was by far the most helpful QBO video I've ever seen. I spent years wondering and worrying about those darned unapplied payments. You made the resolution process so simple.
Wow! You are a blessing! Thank you! My job's QBO account has nearly 2,000 transactions and some are from 2013. I think I need to buy your collosal guide!
would this be the same if the income was recorded as sales receipts and not invoices? I use the sales receipts since the service and payment happen at the same time.
I am a business owner. In 2021, I took over my books from an accounting firm. I noticed that there are a lot of transactions from 2019 that are in the Undeposited Funds account on my Balance Sheet. Do I just leave them there because 2019 has already been reconciled and the books closed or do I try to clear out the Undeposited Funds account as you show in this video? Thank you for your help.
Normally, you would want to clean up Undeposited Funds. Since those transactions are from 2019, you could clean them up in the current year, however, the adjustment will be recorded to the current year - and you would not want to do that. There are ways to clean up Undeposited Funds in prior years but only if it doesn't affect prior year's retained earnings or a previously filed tax return. It's an involved decision and I can't get into all the details here.
Acie, any amounts used by the business owner for personal purposes should be recorded to owner draws or distributions. But, ultimately, it's best to stop using cash in the business unless the owner absolutely has to.
@@5MinuteBookkeeping Thank you! Trying to cut that habit by creating new ones. Just curious on the best practice for these one offs. Appreciate all you do! 🌺
@5 Minute Bookkeeping Hi, I have a deposit that I need to put back into undeposited funds account and all everything I read was to delete it. I don't want to make a mistake and send that money back to the customer.
@@5MinuteBookkeeping Hi Veronica. Thank you! I've been working with QBO for 8 months now but still not really sure on how to do things most of the time. I'm more familiar with Desktop version. So, in my Undeposited Funds account in QBO, I have 2 transactions for the same customer. One is a payment received and another is the deposit into the bank account so if I delete the deposit, the payment will still be in the Undeposited Funds, yes? Date REF No. Type Payee / Account Memo Decrease Increase Clear Balance 07/07/2022 Deposit Smith Paid via QuickBooks Payments $xx,xxx.xx R -$xx,xxx.xx 07/07/2022 Payment Smith Paid via QuickBooks Payments $xx,xxx.xx R $x.xx Thank you!
Veronica, I am a Shopify customer (since 2016) and because I'm not a bookkeeper or accountant, I have no idea what to do with the Undeposited Funds, which are directly deposited from Shopify to the QB Online account. The amount is massive. May I retain your services, please?
Hi Deborah. At my bookkeeping firm, Mavency, we specialize in working with Shopify sellers. If you're a Shopify seller using PayPal please contact me through my website at mavency.com
Great video, Veronica. As I watched, I wondered how many of the symptoms and problems you see in all bookkeeping are due to incorrect workflows, as you mentioned?
Hi Sean. Most of the mistakes made in QBO by untrained users are due to incorrect workflows. The challenge is that every business is different and their bookkeeping workflows should be customized to their specific business. Sadly, people DIYing their books don't realize this until their books get really messed up.
Thank you!!! This was by far the most helpful QBO video I've ever seen. I spent years wondering and worrying about those darned unapplied payments. You made the resolution process so simple.
You are so welcome!
Wow! You are a blessing! Thank you! My job's QBO account has nearly 2,000 transactions and some are from 2013. I think I need to buy your collosal guide!
You're welcome!
Thanks for making these so simple to understand
Glad it was helpful!
would this be the same if the income was recorded as sales receipts and not invoices? I use the sales receipts since the service and payment happen at the same time.
Yes, the process is the same if you're using Sales Receipts deposited directly to Undeposited Funds.
I am a business owner. In 2021, I took over my books from an accounting firm. I noticed that there are a lot of transactions from 2019 that are in the Undeposited Funds account on my Balance Sheet. Do I just leave them there because 2019 has already been reconciled and the books closed or do I try to clear out the Undeposited Funds account as you show in this video? Thank you for your help.
Normally, you would want to clean up Undeposited Funds. Since those transactions are from 2019, you could clean them up in the current year, however, the adjustment will be recorded to the current year - and you would not want to do that.
There are ways to clean up Undeposited Funds in prior years but only if it doesn't affect prior year's retained earnings or a previously filed tax return. It's an involved decision and I can't get into all the details here.
How would you handle undeposited funds that were cash, and used the same day for personal use? Thank you so much! 🌺
Acie, any amounts used by the business owner for personal purposes should be recorded to owner draws or distributions. But, ultimately, it's best to stop using cash in the business unless the owner absolutely has to.
@@5MinuteBookkeeping Thank you! Trying to cut that habit by creating new ones. Just curious on the best practice for these one offs. Appreciate all you do! 🌺
You mentioned the 2nd method to clean up the undeposited funds affects the tax return. Does the first method also change the tax return?
It could if you are adjusting transactions that affect a previous year.
@@5MinuteBookkeeping thank you
@5 Minute Bookkeeping Hi, I have a deposit that I need to put back into undeposited funds account and all everything I read was to delete it. I don't want to make a mistake and send that money back to the customer.
Hi Nicole. Deleting a deposit will only put the amount back into the Undeposited Funds account in QBO.
@@5MinuteBookkeeping Hi Veronica. Thank you! I've been working with QBO for 8 months now but still not really sure on how to do things most of the time. I'm more familiar with Desktop version.
So, in my Undeposited Funds account in QBO, I have 2 transactions for the same customer. One is a payment received and another is the deposit into the bank account so if I delete the deposit, the payment will still be in the Undeposited Funds, yes?
Date REF No. Type Payee / Account Memo Decrease Increase Clear Balance
07/07/2022 Deposit Smith Paid via QuickBooks Payments $xx,xxx.xx R -$xx,xxx.xx
07/07/2022 Payment Smith Paid via QuickBooks Payments $xx,xxx.xx R $x.xx
Thank you!
Veronica, I am a Shopify customer (since 2016) and because I'm not a bookkeeper or accountant, I have no idea what to do with the Undeposited Funds, which are directly deposited from Shopify to the QB Online account. The amount is massive. May I retain your services, please?
Hi Connie. Absolutely. I believe you emailed me already about this and I have responded.
Hi Veronica, I have 6 months of Paypal Statements that I do not know how to reconcile - how soon can I hire you to help ? Deborah
Hi Deborah. At my bookkeeping firm, Mavency, we specialize in working with Shopify sellers. If you're a Shopify seller using PayPal please contact me through my website at mavency.com
How can I hire you to fix all my undeposited funds fast so I can do my taxes at the end of this year?
Hi. Thank you for asking. I only work with Shopify clients.
Great video, Veronica. As I watched, I wondered how many of the symptoms and problems you see in all bookkeeping are due to incorrect workflows, as you mentioned?
Hi Sean. Most of the mistakes made in QBO by untrained users are due to incorrect workflows. The challenge is that every business is different and their bookkeeping workflows should be customized to their specific business. Sadly, people DIYing their books don't realize this until their books get really messed up.
Undeposited funds is such a simple concept but also can feel like such a nightmare lol
Yes it is!