Your P&L has an Undeposited Funds problem.
A step-by-step cleanup walkthrough: diagnose the balance in 5 minutes, match 90 days of deposits, clear the stragglers, and change the setting that stops the refill.
What's inside
- The 5-minute diagnosis: the two reports that show whether you have a problem
- The 90-day deposit-matching routine in the Bank Deposit screen
- A decision list for stragglers: duplicates, never-deposited checks, NSF, wrong account
- The Receive Payment default that stops the account from refilling
- The verification checklist, and the sign the cleanup changed a filed tax year
Send me the walkthrough.
Undeposited Funds is a hallway, not a warehouse.
QuickBooks Online parks customer payments in Undeposited Funds until they are grouped into a Bank Deposit that matches the actual bank line. When that grouping never happens, payments pile up, revenue gets double-counted against bank-feed deposits, and the reconciliation quietly stops working.
This walkthrough clears the account in an afternoon: diagnose the size of the problem, match the last 90 days of deposits, make an honest decision on every straggler older than 60 days, and change the default so the account stops refilling.
The goal is a P&L you can actually read. If the cleanup moves revenue by more than a rounding error across a filed year, that becomes a conversation with your CPA about the return, and the walkthrough tells you how to spot it.
General information for small-business bookkeeping. Not tax or accounting advice for your specific facts. QuickBooks is a trademark of Intuit Inc.; this guide is not affiliated with Intuit. Alex Sears, CPA is licensed in Texas.