I use Quickbooks online and I find the Undeposited Funds and Receive Payments functions confusing, useless and a real waste of time. What do others think?

While Undeposited Funds and Receive Payments can feel redundant, they serve a specific structural purpose in accounting. Undeposited Funds acts as a holding account that lets you group multiple payments into a single batch to match how your bank processes deposits, making monthly reconciliation much smoother.

However, if your payments are deposited individually straight to your bank, you can easily skip this grouping step:

1. Click + Create.
2. Select Receive Payment.
3. Change the Deposit to dropdown menu from Undeposited Funds directly to your bank account.

This records the payment directly, and your bank feed will find an exact match without the extra work.

You can also check this article for additional info: Managing your Undeposited Funds account.

How do your customers typically pay you? Feel free to share a bit more about your workflow, and we can figure out the most efficient way to set this up for your business.