Undeposited Funds is the QBO holding account where customer payments sit between receipt and bank deposit. It exists so a single bank statement deposit can match multiple customer payments. Here's how to use it correctly and clear stuck balances.
Uncategorized Expense is QuickBooks Online's catchall for transactions imported but never assigned to a real category. A clean book has $0 in this account. Here's how to recategorize what's there and prevent new ones from landing.
The trial balance lists every GL account with its debit or credit balance, proving total debits equal total credits. Here's how to read it, and the troubleshooting framework for when it doesn't balance.
The income statement (P&L) reports revenue, expenses, and net income for a period. Here's how to read each section, what it reveals about the business, and how to set up class- and location-based custom P&L views in QBO.
The general ledger is the master record of every transaction posted to every account. It feeds the trial balance, which feeds the financial statements. Here's how the GL actually works in QBO and why bookkeepers care about it.
Double-entry bookkeeping records every transaction with two equal sides (debits and credits) that must always balance.
Bank reconciliation matches your book balance to the bank statement balance, line by line. It's the single best fraud-detection tool a bookkeeper has, and the QBO Reconcile workflow takes about an hour a month when the books are clean.
Cash accounting recognizes revenue and expenses when money moves. Accrual recognizes them when earned or incurred. Most small businesses run cash for tax and accrual for books. Here's why and how.
Accounts receivable is the money customers owe you for invoices already sent but not yet collected. It's a current asset on the balance sheet, not revenue. Here's how AR moves through the QBO Invoice/Customer workflow.
Accounts payable is the running tally of bills you owe vendors but haven't paid yet. It sits on the balance sheet as a current liability, not on the P&L as an expense. Here's how the AP workflow actually moves through QBO.