Newbie undeposited funds question

Before you decide to start from scratch, here is something to try.

If they have everything in undeposited funds, then It sounds like they have never reconciled the bank account? First, make a back up copy of the file. Then, go to record deposits, select all, and make one deposit for all the undeposited funds. Then, you'll need to reconcile the bank account. So, 'select all' to mark everything as having cleared the bank. Then go back and unmark/uncheck any outstanding checks or deposits. How large is the bank rec difference? Was there bank service charges for the past 2 years and could this account for the difference? (If so, make a JE to record estimated bank service charges for the past 2 years). Can you live with the difference? (If so, you can let QB make an adustment. However, you should then go in and edit the JE that QB made and change the account from 'reconciliation discrepancies' to bank svc charges or misc exp or something.

If the bank rec is too far off, then you need to decide if you want to go back and reconcile monthly or quarterly or not? If not and you decide to start with a fresh file, you can export/import the lists to save time in setting up the new file.

Good luck!

Michelle L. Long, CPA, MBA Author of: Successful QuickBooks Consulting: The Complete Guide to Starting and Growing a QuickBooks Consulting Business

I want to start with 2007. I recorded all deposits (from all 2007 invoices) and checks written from that time until now. I really just want the undeposited funds to go away and never return? When I receive an invoice as paid that's it. I then make all banking register entries from the monthly bank statements the assoc sends me. Can I do this? Thanks Frank

Before you decide to start from scratch, here is something to try.

If they have everything in undeposited funds, then It sounds like they have never reconciled the bank account? First, make a back up copy of the file. Then, go to record deposits, select all, and make one deposit for all the undeposited funds. Then, you'll need to reconcile the bank account. So, 'select all' to mark everything as having cleared the bank. Then go back and unmark/uncheck any outstanding checks or deposits. How large is the bank rec difference? Was there bank service charges for the past 2 years and could this account for the difference? (If so, make a JE to record estimated bank service charges for the past 2 years). Can you live with the difference? (If so, you can let QB make an adustment. However, you should then go in and edit the JE that QB made and change the account from 'reconciliation discrepancies' to bank svc charges or misc exp or something.

If the bank rec is too far off, then you need to decide if you want to go back and reconcile monthly or quarterly or not? If not and you decide to start with a fresh file, you can export/import the lists to save time in setting up the new file.

Good luck!

Michelle L. Long, CPA, MBA Author of: Successful QuickBooks Consulting: The Complete Guide to Starting and Growing a QuickBooks Consulting Business

It depends. It sounds like you received payments and it went into undeposited funds. Then, you made a deposit for the same payment? When you made the deposit, what 'from account' or what was the other side of the entry?

When you 'receive payments' it updates accounts payable and 'marks' the invoice as paid. You can change the default so that it doesn't go into undeposited funds by going through edit, preferences, sales and customers, and unchecking that box on the bottom right corner for use undeposited funds. However, if the deposits include more than one check that need to be added together to get the total deposit amount you probably should be using undeposited funds.

It sounds like you need to do some research to see if accounts receivable is correct or not, have sales been recorded twice (with the invoice and the deposit), etc. When you understand what exactly has happened, then you'll be in a better position to figure out how to fix it.

Michelle L. Long, CPA, MBA Author of: Successful QuickBooks Consulting: The Complete Guide to Starting and Growing a QuickBooks Consulting Business