Will receipts waiting to be deposited convert to QuickBooks Undeposited Funds?
Yes, a properly handled conversion should land receipts still awaiting deposit in Undeposited Funds so your first bank reconciliation ties out.
Yes, they should. Receipts that were still waiting to be deposited on your conversion date should arrive in QuickBooks as payments sitting in Undeposited Funds. You then record the deposit when the bank shows it. The exact mapping depends on your file, so we confirm it before converting rather than assume it.
Why does this decide whether the first reconciliation ties out?
QuickBooks works from one simple rule: a customer payment can sit in Undeposited Funds until you group it into a deposit. That grouping is what matches the bank statement. If three checks go to the bank together, one QuickBooks deposit covers all three.
Get this wrong and the first reconciliation after conversion usually fails. Pending receipts that convert as money already in the bank inflate the ledger balance. The bank has not received that cash yet, so the two balances will not agree until someone finds and fixes every stray item.
What happens to receipts that were already deposited?
Receipts deposited before your conversion date are history, and they should convert as deposits already in the bank. Only the receipts still pending at cutover belong in Undeposited Funds. Drawing that line at the right date is part of the conversion work, and the right date depends on when you plan to cut over.
How do you check it after the conversion?
Open the Undeposited Funds account in the converted file and compare the payments listed there against what your bank has not yet shown. Also compare the balance against what your old file reports as waiting to be deposited on the same date. The two should tell the same story.
If anything looks off, it is cheaper to catch it before you start entering new transactions. We offer a free evaluation of your file and will tell you exactly how the pending receipts will land before you commit to a date.
Before you pick a cutover date, list the receipts you know are waiting for the bank and their total. Keep that list with your final reports from the old system. After conversion, check that total against Undeposited Funds. If it matches, the first reconciliation starts from the right place.