On the “Statement of Financial Position” report, I show an amount listed as “Undeposited Funds”. I looked it up and its from 2022. How do I get this account to zero?

Go to Make Deposits and see if any payments are still listed there. Those are likely the ones causing the balance. If they were already deposited outside QuickBooks (like you manually recorded the deposit), just delete or clear those old payments so they don’t double up.

If you can’t find anything under Make Deposits, run a Deposit Detail or Undeposited Funds QuickReport filtered for 2022. That will show which transactions are stuck. From there, either complete the missing deposit or move the payment to the correct account. Once all those are matched, the Undeposited Funds balance will drop to zero.

Welcome to the Community, @info2306.

Let’s work together to get your Undeposited Funds account balance to zero. 

Before making any changes, it’s important to note that the funds in the Undeposited Funds account are from 2022, which falls under a previous financial year. Making changes to prior-year transactions could impact your books and financial reports, especially if that year has already been closed or submitted for tax purposes. I recommend consulting your accountant to keep your records accurate.

If you’ve confirmed with your accountant that it’s okay to proceed, you can zero out the Undeposited Funds account by creating a bank deposit. This will move the funds from Undeposited Funds and record them as deposited into your bank account.

Here’s how: 
 

1. Go to + Create and select Bank Deposit under the "Other" section.
2. Choose the appropriate bank account where the funds should have been deposited.
3. Select the transactions found in Undeposited Funds from the list to record them as deposited.
4. Click Save and Close.

In cases where the balance in Undeposited Funds is the result of a duplicate or incorrect transaction, you can clear the balance by creating a journal entry to move the funds to the correct account. To do this, debit the Undeposited Funds account and credit the appropriate bank or income account.


 

Let us know if you have any further questions. We’re here to help.

@info2306 

You shouldn't delete the entry since it's from a previously closed period (2022).  You want to reverse it in the current period (2025).  This assumes the deposit was never made, which, at this point, it presumably wasn't, or is at least a duplicate entry.  The proper way to zero it out is to use an Expense transaction (Create > Expense).  Select 'Undeposited Funds' under 'Payment account'.  The proper category to choose depends on how the balance hit Undeposited Funds back in 2022.  If the amount is insignificant, choose the same account that was the source account for the funds in 2022.  If it's a significant amount, I would suggest asking your CPA/tax accountant how to best categorize it.  Then make a bank deposit and select the positive amount from 2022, and the negative amount created by the newly-created Expense transaction.  That creates a $0 bank deposit and clears the 2022 balance from Undeposited Funds.