I have my bank account transactions downloaded in quickbooks. I am reviewing them and assigning the accounts to move them to the register. I don’t know what account to assign my deposits. When I manually enter a deposit the account is Undeposited Funds but on the down loaded ones I am not able to use that account.
There are a couple of different ways to manage deposits. First, if you have already entered your customer’s payment into QuickBooks to close an open invoice, when the deposit for that payment is downloaded into QuickBooks you should just match it with the payment that has already been entered. If you don’t and you proceed to record it again (by selecting an account) then you will double up on your income. However, if you have not previously entered the payment you need to select an income account (not the undeposited funds account).
The purpose of the undeposited funds account is to hold money that you have received from a customer but you have not deposited with the bank. I have included the links below to a couple of our video tutorials that might help to clarify things:
Let me know if you have any other questions after you watch the video tutorials.
Best of luck,
Crystalynn Shelton, CPA
315 Madison Avenue, 24th Floor
New York, NY 10017
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