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How to Use Undeposited Funds in Quickbooks Online:- Undeposited funds exist in every business. When a customer pays you with cash or a check and you take the money to your bank at the end of the day, money is sometimes "in transit" for less than a day. Other times, funds may take several days to arrive. This happens most often when you batch your deposits, going to the bank only once or twice a week, or when you accept a credit card payment and the funds take a day or two to clear your bank account. For these funds in transit, QuickBooks Online maintains a separate account. Unfortunately, the Undeposited Funds account in QuickBooks Online is one of the most misunderstood — and one of the most likely to lead to incorrect financial statements for a business.

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