What is Undeposited Funds?
What is Undeposited Funds?
Note: QuickBooks has renamed “Undeposited Funds” to Payments to Deposit on some accounts. They are the same account with the same functionality.
What is Undeposited Funds (or Payments to Deposit)?
Undeposited Funds is a temporary account where QuickBooks holds payments before you deposit them in the bank. Think of it as an envelope for cash and checks until you take them to the bank.
How does FlexBooks use Undeposited Funds?
FlexBooks temporarily sends credit card transactions to Undeposited Funds, then batches them into a single QB Deposit that moves funds to your checking account.
Why is Undeposited Funds never zero?
For Transfirst users, this balance reflects money Transfirst is currently holding before depositing. As long as you charge credit cards, the balance will typically be greater than zero — that means you have booked revenue not yet deposited.
You can reconcile Undeposited Funds against the Mindbody Settled Transactions report. By Matching all Transfirst deposits, FlexBooks auto-reconciles this for most users.
Mindbody Payments users
If you use Mindbody Payments, credit card sales may flow through a clearing account instead of Undeposited Funds. See Clearing Accounts 101.
When to worry about the balance
- Normal: Balance fluctuates daily; matches recent unsettled card sales.
- Investigate: Balance growing for weeks with no deposits matching in bank feed.
- Action: Check if sync stopped (Why Did My FlexBooks Account Stop Syncing?) or deposits were Added instead of Matched (Why Is My Income Being Doubled?).