QuickBooks Undeposited Funds: The Right Workflow + Real Fixes
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If you’ve ever opened QuickBooks and found a long list of old payments sitting in Undeposited Funds, you’re not alone. Business owners create it by accident… bookkeepers inherit it… and the list just grows over time.
In this step-by-step walkthrough, I’ll show you:
✔ The correct sales workflow in QuickBooks (invoice → payment → deposit → match)
✔ Why Undeposited Funds gets messy — and the exact moment the workflow breaks
✔ How to fix duplicate income, bad deposits, and stuck payments
✔ How to handle current year mistakes, prior year mistakes, and merchant fee mismatches
✔ When to use a zero-impact deposit so you don’t change closed books
✔ Real examples from diagnostic reviews (Lily, Jasmine, Francis, Frank)
Once you understand the workflow, the cleanup becomes simple — and your income finally becomes accurate again. No more duplicate deposits, no more mystery amounts, no more UF headaches.
If you’d like me to review your QuickBooks file and clean up your Undeposited Funds for you, call, text, or email me to schedule a free discovery call.
—
Catherine Silverio
Owner, Silver Bullet Bookkeeping LLC
📧 [email protected]
📱 719-822-6868
🌐 silverbulletbookkeeping.com
Timestamps
00:00 – Intro
01:37 – Proper sales workflow: creating an invoice
02:16 – Recording a customer payment
03:12 – Using sales receipts
03:57 – Matching in the bank feed
05:02 – Example 1: How merchant fees break the workflow
05:20 – Why reconciliation must come first
08:04 -- The bad news in overstating income
08:40 – Fixing UFs when merchant fees are involved
11:05 – Example 2: Fixing UF in the current year (taxes not filed)
13:11 – Example 3: Fixing UF from a prior year (taxes filed)
16:16 – Outro and next steps