Quickbooks Undeposited Funds – Simple Restaurant Accounting
Oct 28, 2023
Most of the time for Restaurants specifically, you enter your sales as a total at the end of the day. But if you had catering clients, you would send specific invoices. Do your catering clients payments trip you up when you’re trying to log them in to QuickBooks?
Especially the following month, when you’re trying to match the deposits on your bank statement to your invoice payments … but the amounts never seem to match?
Here’s an example of what I mean:
Let’s say you receive a check from a catering client – let’s say you received $100 from an event.
Then, later in the afternoon, another customer drops off $200 and even another client writes you a check for $300.
And the next day, when you go to the bank, you deposit all three checks for a total deposit of $600.
Now, when you get your bank statement the following month, the only line item for those 3 checks will be “$600 deposit”; there won’t be any indication or detail of the three separate checks. So how do you match and reconcile each check?
(And guess what? Even if you are paid via Stripe or PayPal instead of paper checks, it’s pretty much the same process – a delayed deposit and payments bundled together)
So – why does that matter?
Because:
If you want to know + track exactly when your clients paid you, and If you want to know exactly what was in that $600 deposit, even when you’re looking at it 6 months later and forgot which checks you cashed that day, then you’ll need to make sure you use an extra step in QuickBooks, using an account called “Undeposited Funds”.
I promise, It’s not as hard as it may sound. 😉 Just check out the helpful link below – it’ll walk you through the whole process, step by step. Then you won’t have any trouble tracking client payments and matching your deposits!
https://quickbooks.intuit.com/learn-support/en-us/chart-of-accounts/deposit-payments-into-the-undeposited-funds-account-in/00/185574
What about you? Do you already use the “undeposited funds” feature while doing your bookkeeping + depositing your customers checks?
Do you just want someone to take care of this financial stuff for you?
Ready to transform your restaurant's finances? Whether you need Monthly Bookkeeping, a Catch-up Bookkeeping service, or want to embark on our DIY Bookkeeping Course, we've got you covered. Have questions or need more information? Don't hesitate to reach out. Let's talk about how we can support your business. Schedule your FREE 15-Minute Call today and let's get started on your path to stress-free bookkeeping!
