Hello, @Chris_Accounting_2023.
Allow me to chime in and share some information about money movements in QuickBooks Online.
Yes, payments from customers usually go into the "Undeposited Funds" account first. This account holds the payments until you're ready to deposit them into your actual bank account.
Upon receiving customer payments, you'll log them in your accounting software, not directly in the bank account but in the "Undeposited Funds" account. As multiple payments accrue, you'll initiate a deposit transaction to shift these funds from "Undeposited Funds" to your verified bank account.
Let me share these articles with you for more details:
I'd also like to give you these articles for additional guidance and reference about using the Undeposited Funds account in QBO:
Please know that you can always reply or reach out to us again if you have other questions. We'll make sure that everything is sorted out.
