The Most Common DIY Bookkeeping Mistake: Undeposited Funds | Know Your Worth E19

February 6, 2024

We’ve seen it all when it comes to looking over business owners’ books, but there’s one bookkeeping mistake that we see again and again: undeposited funds.

Undeposited funds is an account in QuickBooks Online, and it is an automatic account that is created if you are invoicing out of QuickBooks. 

If you see that account growing, it’s a big red flag.

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Tune into this episode to understand: 

02:51 — What are undeposited funds

03:29 — Why undeposited funds create issues on your financial statements

05:35 — How undeposited funds happen

11:47 — How undeposited funds might be making you double-counting your revenue 

12:31 — Why remedying undeposited funds is crucial for tax savings

13:44 — How to spot the warning signs of undeposited funds on your balance sheet

🧹Get a Quickbooks Cleanup to Get Your Books Back on Track 

If you’ve run into issues with undeposited funds, or you’re looking to re-categorize existing transactions, reconcile accounts, examine journal entries, etc, our QuickBooks Cleanup will get your books in order so you have an accurate financial view of your business so you can scale more effectively and give your accountant the best numbers to reduce your tax bill. 

When you book a call, we’ll get to know your business and needs and determine exactly what needs to get accomplished during the Quickbooks Cleanup process.

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