Using the Undeposited Funds Account for Sales Receipts
Quicken Business & Personal only
What is the Undeposited Funds Account?
The Undeposited Funds account is a temporary holding place for payments you've received but haven't yet deposited at the bank. Think of it as a virtual money drawer where payments stay until you physically take them to the bank or they appear as a combined deposit in your bank account.
If you create a sales receipt and plan to deposit the payment later, or plan to group it with other payments as a single bulk deposit, you need to use the Undeposited Funds Account.
The Undeposited Funds account is:
a holding account for payments received that you plan to physically deposit later
allows you to group payments together for bulk deposits
This account ensures your bookkeeping matches your actual bank deposits—especially when you group multiple customer payments into one bank deposit.
Does this Apply to You?
Use Undeposited Funds when:
You accept checks and cash from multiple payments and batch them into one deposit
You make bulk deposits from several days of payments
Your card processor (Square, Stripe, etc.) makes payouts that includes multiple payments
Do NOT use Undeposited Funds for:
Wire transfers
ACH or direct deposits paid automatically
Any payment that appears instantly in your bank account
Any single payment deposit that matches a sales receipt.
Quick decision guide:
If it was already deposited for you → skip Undeposited Funds.
If you still need to take it to the bank → use Undeposited Funds.
Why Undeposited Funds Matters
When you issue receipts and then later deposit multiple payments together at the bank, your real-life money flow and your Quicken bookkeeping records won’t match unless you use the Undeposited Funds account.
If you don’t use it:
Your books will show separate deposits
Your bank records will show one combined deposit
Nothing matches and reconciliation becomes confusing
Reports and tax summaries can become inaccurate
Using the Undeposited Funds account fixes this by gathering all payments into one place so you can record one clean deposit that matches exactly what the bank shows.
In simple terms: Undeposited Funds keeps your bookkeeping aligned with how money actually moves in your business. Without it, your records drift out of sync—and fixing them later is time-consuming.
Here’s the common problem this solves:
Example
On Monday, you receive:
$500 cash from Client A
$300 check from Client B
$200 cash from Client C
You create three sales receipts — but you don’t go to the bank three times.
On Tuesday, you deposit all the funds in one $1,000 bulk deposit
Without Undeposited Funds
Quicken would show:
3 individual deposits ($500, $300, $200)
Your bank would show:
1 deposit ($1,000)
These don’t match, which makes reconciliation confusing and error-prone.
With Undeposited Funds
Quicken Business & Personal shows:
$1,000 collected into Undeposited Funds from 3 separate receipts
One $1,000 transfer into your checking account
Your bank shows:
One $1,000 deposit
Bank balance and Quicken books corrolate.
How It Works
Step 1: Customer Pays You
When you create a sales receipt, choose Deposit To: Undeposited Funds, not your checking account.
Example:
Sales Receipt #1: $500 → Undeposited Funds
Sales Receipt #2: $300 → Undeposited Funds
Sales Receipt #3: $200 → Undeposited Funds
Undeposited Funds balance: $1,000
Step 2: You Make Your Bank Deposit
Later, you take all cash and checks to the bank.
Your bank feed will show one deposit for the combined amount.
Step 3: Categorize the Bank Deposit
When the bulk deposit appears in your bank feed:
Categorize it as a Transfer > Undeposited Funds
Now your books will show:
Undeposited Funds → $0
Business checking → one $1,000 deposit
All receipts properly recorded
✔ Everything matches your bank statement
✔ Reconciliation becomes a one-click task
Step 4 (Optional): Track Which Receipts Were Included in the Deposit
After you match the bank deposit to Undeposited Funds, you may want to confirm which individual receipts were part of that bulk deposit.
You can do this in one of two ways:
Option 1: Change Receipt Status to Cleared
Go to Undeposited Funds and review the receipts you recorded.
Any receipt that still shows a Pending status means the money has not yet been associated to a bank deposit.
For each receipt in the bulk deposit, do the following:
Click on the Receipt you want to clear.
Click on View Transaction in upper left.
Mark the Receipt status as Cleared and click Update.
Receipts associated with the matched bulk deposit will show as Cleared.
This helps you confirm:
Which payments were included in the bank deposit
Whether any receipts still need to be deposited
Option 2: Mark Receipts as Reviewed
Another option is to use the Reviewed flag to track where receipts were included in the deposit. After the deposit is categorized as a transfer to Undeposited Funds, mark each receipt that is part of the deposit as Reviewed.
This gives you:
A quick visual indicator that the receipt was part of a completed deposit
A way to catch missed or forgotten deposits later
The Bottom Line
The Undeposited Funds account acts like a virtual wallet that holds payments until you make the real bank deposit.
Using it ensures:
Your books match your bank
Bulk deposits reconcile cleanly
Your financial records stay accurate and audit-ready
Undeposited Funds keeps your books aligned with how money actually moves in your business.