What are some of the small business bookkeeping accounts QuickBooks sets up automatically?
QuickBooks uses several common accounts such as Accounts Receivable and Accounts Payable. The program also sets up some unusual accounts called Uncategorized Income, Uncategorized Expense, and Undeposited Funds. The latter involves a payment from an invoice or sales receipt. QuickBooks uses this account to hold money you’ve collected until you deposit it in a bank. Think of Undeposited Funds as your front pocket. Here is where you might you’re your money until you arrive at the bank. You pull it out of your pocket and hand the money to the teller. If you find that the Undeposited Funds account continues to grow and would like another alternative, contact A1 Acct Inc for ways to correct this problem. You really shouldn’t walk around with all that money collecting in your front pocket.
