Thank you for being part of this discussion, FZV. I’m here to provide insights about the Undeposited Funds account and its role in your financial system. I'll share with you the process in modifying account types, allowing for more informed decision-making and a clearer idea of your financial status.

The Undeposited funds account is an internal other current asset account in QuickBooks. It's like a lockbox that holds the funds until you deposit them into your bank. It's also the default Deposit to account when you receive payments and bank deposits to complete the invoicing process. You can still manually choose a different account type when you record payment transactions on the Deposit to dropdown menu. I'll attach an image for your visual reference.

Additionally, if you have funds stored in the Undeposited fund's account, you can transfer them to your bank by either a deposit or transfer.

Deposits:

1. Go to + New.
2. Choose Bank Deposit.
3. From the Account dropdown menu choose the account you want to put the money into.
4. Select the checkbox for each transaction you want to combine.
5. Make sure the total of the selected transactions matches your deposit slip. Use your deposit slip as a reference.
6. Click Save and close.
   
   

Transfer:

1. Locate the + New menu and choose Transfer.
2. Click the Transfer Funds From dropdown menu to select Undeposited Funds.
3. Then, choose the appropriate bank you want to move the money to.
4. Enter the necessary information.
5. Hit Save and close.
   
   
   

Remember, FZV, a clearer view of your financial data leads to a more effective financial management. If you have any questions as you work through this process, don't hesitate to comment below. I'll make myself available to provide any necessary assistance as you navigate these changes. We look forward to seeing how these improvements will positively impact your financial reporting and your overall business operations!