a. Enter a transaction of receive payment
b. Match the multiple transactions of receive payments with Deposit:
c. Reconcile this transaction in the bank account.
First we need to understand which funds are recorded as undeposited funds in the Quickbooks, it’s simple when you first time receive a payment, and Quickbooks create an undeposited fund account that becomes a default deposit to account for same kind of payment in future. Suppose after receiving payment invoice, sales or credit card receipt, Quickbooks automatically generates the undeposited fund account.
When you are receiving subsequent payments than you take individual payment option to your financial institution like bank, you can transfer the undeposited fund account by going to the “Make deposits window.” After getting payment we can see that in bank feeds and that creates the need to check each of the individual deposits and enter the whole amount of receipt into bank.
By doing this you can ensure that all the transactions made in undeposited account is made nil and bank account is also debited with the same amount. And the remained fund in the undeposited accounts also needs to be verified for the accuracy.
Recording transaction using undeposited fund account is simple. These are basics steps that need to be followed.
There would be different payment transactions deposited into undeposited account. Select the one payment transaction you want to record.
There would be subsequent payment transactions with the one you chose to record, match all those transactions so that you can add them all in one go. Groping those transactions would definitely make the process easy and rapid for you.
Following this, you can also match your bank activities, you can select all the transactions which are to be deposited and select appropriate bank account, and the step is done.
After following all these steps you can see that undeposited funds accounts have become $0.00. That will also make the bank account deposited with the same amount. You can cross check both the accounts. It’s important to reconcile bank account with Quickbooks.
It’s very important as it shows the inflow-outflow of payments. It’s necessary to complete this process with proper articulation to ensure that the accuracy of payments is maintained. It also helps to have a glance of your business payment transactions at any time.