Undeposited Funds Really Does Make Sense

I’m Shannon Phares, Operations Director at Kildal Services. The new year begins with me being pushed and encouraged by many friends –  including StacyK – to go beyond the fence, open the gate, and get out of my comfort zone for once!  The thought of being on camera or video scares the crap out of me!  However, I felt compelled to create a short video to help our clients with a common problem: managing Undeposited Funds.

Undeposited funds really does make sense, I promise.


I recently completed another QuickReview™, and after Stacy spoke to the client, she hired us for the clean up. Shortly after, I received an email from the client in which she said that no matter what she did, she just wasn’t grasping the concept of Undeposited Funds. I decided we needed a resource to share with her – and future clients – to help explain it all.

Because this is not the first time we’ve seen our clients struggling with how to use the Undeposited Funds account, I decided to put on my “big girl pants” and make my first ever video. (I even managed to stomach watching the entire thing myself.) 

Stacy always tells clients to think of Undeposited Funds as the accounting system equivalent of their cash drawer: it’s where the payments a business has received are “stored” until they get taken to the bank. It’s a way of ensuring that deposits in QuickBooks Online match what was taken to the bank and ultimately shows up on the statement.

Using Undeposited Funds in QuickBooks Online helps make bank reconciliations easier at month end. 


If after watching this video, it still doesn’t make sense, I would recommend you reach out to us for some training.

Here it is, my video on managing Undeposited Funds in QuickBooks Online:

Shannon Phares, Operations Directory, graduated from Walsh College of Accountancy with a BA in 1999. She is also a Certified Bookkeeper through the American Institute of Professional Bookkeepers, a Notary Public, and a Certified QuickBooks ProAdvisor.  Shannon has extensive experience with QuickBooks Enterprise Solutions, inventory management, setup and data clean up. Our clients love her attention to detail and her ability to quickly analyze an issue and offer solutions (which is most likely a result of her obsession with all things forensic!).


  1. Karriem

    Good show and tell for undeposited funds. So many customers miss this step

    • StacyK

      Right? Really common error that we see often!

  2. Karen Magno

    I do have to admit when I first started working with QuickBooks back in 2005 I had never heard of Undeposited Funds. I do agree this makes reconciling the bank account so much easier! Great article/video.


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