Accounting glossary
What is undeposited funds?
The holding account for payments received but not yet taken to the bank. It exists so your ledger deposits match the bank's deposits in size and date — fourteen sales become one deposit, because that is what the bank sees.
Example
Thirty-one payments totalling $127,284.30 sit in undeposited funds — taken at the counter, not yet at the bank.
Bank them as one batch and the ledger shows the single line the bank statement will show, which is what makes reconciliation quick rather than a forty-to-one matching exercise.
In SeroBooks
Payments land here automatically; the Deposits screen moves them to the bank in real-world lumps. Deposits →
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