Depositing funds, versus grouping them with undeposited funds
When you receive funds from customers (or others), you can either deposit them in an account immediately or you can group them with undeposited funds and deposit them later. The better option for you depends upon how you operate your business. If you receive only a few customer payments every day and you deposit them daily, you may find it easiest to mark the Deposit to Account option and choose the account where the funds will be deposited. With this option, the balance of your bank account will immediately reflect your receipts.
If you receive many customer payments every day or if you don't take your cash receipts to the bank to be deposited on a daily basis, you may favour the Group with Undeposited Funds option. The receipts won't be reflected in your bank account until you record a bank deposit using the Prepare Bank Deposit window. Once you've recorded the deposit, you can print the Bank Deposit report, which may be helpful in preparing a deposit slip.