The Undeposited Funds account is designed to temporarily hold payments you’ve received but haven’t yet deposited into your bank. It helps you track money in transit, such as checks or cash payments, until they’re deposited into your bank account.
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The Undeposited Funds account is not created manually. It is automatically generated when you start invoicing clients. |
Why use the Undeposited Funds account?
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When you receive a payment from a client, open the applicable Invoice (Business tab -> Invoices tab).
Select the Receive Payment button.
In the Deposit Account field, choose the Undeposited Funds account to temporarily hold the payment.
Select the Apply button.
The Invoice will not now show the payment. The payment will also appear in your Undeposited Funds account.
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