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In this tutorial, Matt Holdquist from QuickBooks University explains how to address errors related to undeposited funds in QuickBooks. Undeposited funds refer to payments received from customers that have not yet been deposited into the bank. The common issue arises when these amounts remain in the undeposited funds account, causing confusion. Holdquist outlines the importance of managing this account effectively, advising users on how to toggle the display of these funds. He emphasizes the typical process of receiving customer payments over several days and highlights QuickBooks' approach to managing these transactions before they are deposited.