Client Data Review Enhancements in Version 2010 - Clear Up the Undeposited Funds Account

Client data review is designed for external accountants, but can also be a great tool for corporate controllers who want to purchase the QuickBooks Accountant Edition. They have added a number of new tools that make it easy and fast to find and fix accounting errors. One of the common errors occurs when clients use the receive payments window and create a separate deposit for the same payment.

Below is an example a deposit for two customer payments received to undeposited funds.



As you can see, the first deposit is recorded to an income account and the second is recorded to a accounts receiveable. In the first case, income has been recorded twice, once when the invoice was generated and then with this deposit. In the second case the debit to accounts receiveable was recorded twice, once in the receive payments entry and again in this deposit.

Now let’s look at an example of the fix in client data review. The image has been abbreviated so that you can see the how both payments and deposits can be matched for a specific customer. QuickBooks has a menu on the left to select payment received for specific customers so we can match payments and deposits for Mickey Mouse and, then, select Mortimer Snerd from the customer menu to match.



You can see below the corrected deposit showing the offset account in both cases to be undeposited funds.



If client did not enter a name on the deposit, you can select these from the aforementioned customer menu. And include multiple payments in a single deposit.



Robert Guild is certified QuickBooks ProAdvisor in Austin, TX who conducts CPE courses for CPAs and individual training and group classes to QuickBooks users. His company at www.QBCoach.biz, maintains a sixteen-station QuickBooks lab, providing hands-on training. You can contact him directly at rguild@QBCoach.biz or follow him on twitter at QBPro