Easy Tech TutsHow to Fix Undeposited Funds in QuickBooks Online Easily 2026
By Impran M N
When customer payments are recorded but never combined into a bank deposit, your Undeposited Funds account can pile up and distort your books. This guide shows how to sweep those pending payments into a proper deposit entry in QuickBooks Online.
01Open the Bank Deposit form
Click + New and select Bank Deposit from the Other column.
02Choose the receiving account
Select the checking account where the physical funds actually landed.
03Select the pending payments
In the 'Select the payments included in this deposit' grid, check each customer payment that matches a real-world deposit.
04Handle processing fees
If the total doesn't match your bank statement exactly, use the Add funds to this deposit section to record bank fees under an expense account.
05Save and match to your bank feed
Save and close, then check Bank Transactions to confirm the deposit matches the incoming bank feed line.
Frequently asked questions
Why is my Undeposited Funds balance so high?
It typically happens when customer payments are recorded but never combined into a bank deposit, leaving them stuck in the holding account.
How do I know which payments belong together in one deposit?
Group payments that were physically deposited together in one bank transaction, matching the total to your bank statement.
What if the deposit total doesn't match my bank record?
Use the Add funds to this deposit section to record the difference as a bank fee or other adjustment.
How do I confirm the fix worked?
Run a Balance Sheet report and check that your Undeposited Funds line has dropped back down to zero.
Watch the full walkthrough
The same steps, demonstrated on screen from start to finish.
