Why do synced invoices from 17hats show up under "Undeposited Funds" in Quickbooks Online?
When a payment is pushed from 17hats to QuickBooks Online, by default it will go to "Undeposited Funds". Undeposited Funds is an internal other current asset account created by QuickBooks to hold funds until you are ready to deposit them. It serves as the default Deposit To account when you:
- receive payments
- use a payment item on an invoice, or
- enter a sales receipt
Most accountants/bookkeepers want this because it allows you to match your bank deposits with the actual payments, for reconciliation purposes. e.g. most credit card processors will deposit the funds in your bank 2-3 days after the actual payment, so your bookkeeper can then leave the undeposited payments in undeposited funds until they actually get deposited, and then move them over to the bank account in QuickBooks.
This article on Intuit's QuickBooks Help Centre regarding the Undeposited Funds account: Understanding How the Undeposited Funds Account Works
KeyWords: Quickbooks, Payments, Deposits, Undeposited Funds