$5,000 Small Business Bookkeeping Surprise
Quick win story from the books
A new client came to us recently and said something we hear a lot in Littleton, Centennial, and across the Denver Metro: “I just want to know what’s right.”
Their numbers looked “fine” at a glance. The bank balance seemed normal. QuickBooks looked busy. Nothing screamed emergency.
But within the first cleanup pass, we found $5,000 sitting in plain sight that they genuinely did not know they had.
Not a loan. Not a new customer. Not a miracle.
Just money that was already theirs, hiding in the messy middle between “I entered it” and “I can actually see it.”
This is one of the underrated reasons small business bookkeeping matters. It is not about being perfect. It is about making your money readable.
Table of contents
- Why “missing money” happens (even with honest owners)
- Where $5,000 usually hides in QuickBooks Online
- The 30-minute “Found Money” audit you can do monthly
- How to prevent it with accurate accounting habits
- When it is time to bring in a pro
Why “missing money” happens (even with honest owners)
Most small business owners are not careless. They are busy.
You are running jobs, answering customers, paying bills, trying to remember if that vendor got paid, and keeping the wheels on.
So the bookkeeping becomes “good enough,” and then one day you realize:
- You are not sure who still owes you
- You do not trust your Profit & Loss (sometimes labeled Statement of Activity)
- You cannot tell if your bank balance matches your reports
- You feel like you are working hard but the money feels fuzzy
That is where hidden money shows up.
And here is a line we stand by:
A great CPA helps you file your taxes. The right bookkeeper helps make sure your books are accurate in the first place.
That is the gap. Accurate accounting is what turns “I think” into “I know.”
Where $5,000 usually hides in QuickBooks Online
Below are the most common places we find “lost” money during cleanup and ongoing bookkeeping services for small business. You do not need to be an accountant to check these, but you do need to be willing to slow down and follow the trail.
1) Customer payments that never got matched to an invoice
This is a classic.
A customer pays you. You record the deposit. But the payment never gets applied to the correct invoice (or the invoice never got created).
In QuickBooks Online, this can show up as Unapplied Cash Payment Income on a cash-basis Profit & Loss. It often means money was received but not connected to a sales form the right way. (QuickBooks literally creates this line to handle cash-basis reporting.)
What it looks like in real life:
- Your bank balance went up
- You feel paid
- But your Accounts Receivable still shows that customer as unpaid
- You might chase a customer who already paid
Why it matters: it creates confusion, double-work, and bad decisions. It also makes accounts receivable automation harder because the system cannot “automate” what is not connected.
2) Open credits that never got used
Open credits are sneaky. They often come from:
- Customer overpayments
- Refunds that were entered as credits
- Vendor credits that never got applied to a bill
If you have a few credits sitting around, that can easily add up to thousands.
Why it matters: unused credits make you feel tighter than you are. They can also cause you to pay a bill you did not need to pay yet.
This is where accounts payable automation and accounts payable automation solutions help, but only if the underlying transactions are clean.
3) Undeposited Funds that are not actually undeposited
QuickBooks Online uses an Undeposited Funds account as a holding spot for payments you received but have not grouped into a deposit yet.
That is normal.
What is not normal is when Undeposited Funds becomes a dumping ground for months.
Common causes:
- Payments were recorded twice
- Deposits were entered manually instead of using the “Bank Deposit” workflow
- Someone used Undeposited Funds like a checking account
Why it matters: it breaks matching, makes reconciliations messy, and hides what is truly available.
4) Bank and credit card reconciliations that were skipped or half-done
If you want to find hidden money fast, start here.
When bank and credit card reconciliations are not done consistently:
- Payments can be duplicated
- Expenses can be missing
- Transfers can be recorded wrong
- Your “real” cash position becomes a guess
Reconciliations are the difference between “the numbers exist” and “the numbers are true.”
This is the heart of accurate accounting services.
5) Expenses that belong to the business but got stuck in limbo
Sometimes the “missing money” is actually the reverse: you are spending money that should be reimbursed, billed back to a customer, or categorized correctly.
For service businesses, this is common with:
- materials
- subcontractors
- mileage
- permit fees
- job expenses on a personal card
If those costs are not tracked and billed properly, you are quietly donating profit.
That is why business accounting services should not just be data entry. You need a system that matches how your business actually works.
The 30-minute “Found Money” audit you can do monthly
If you want a simple habit that protects your cash flow, do this once a month. Put it on your calendar. Treat it like payroll.
Step 1: Check who still owes you
Run an Open Invoices or Accounts Receivable aging view.
Ask:
- Are any invoices marked unpaid that you are sure were paid?
- Do you see customers who “always pay” but suddenly look behind?
This is the fastest place to catch unapplied payments.
Step 2: Look for unapplied cash payment income on your P&L
Run your Profit & Loss on cash basis for the last 30–60 days.
If you see Unapplied Cash Payment Income, click into it and investigate. It is usually solvable by applying payments correctly or creating the missing invoice.
Step 3: Scan Undeposited Funds
Open your Chart of Accounts, find Undeposited Funds, and run the report.
If you see old items that should have been deposited months ago, that is your clue that deposits and matching need cleanup.
Step 4: Review “Credits”
Look for:
- Customer credits
- Vendor credits
Ask:
- Are these real credits you can apply?
- Are they duplicates created by mistakes?
Step 5: Reconcile one account
If you are behind, reconcile at least your main checking account first.
Even one clean reconciliation a month can prevent a pileup that turns into a weekend-eating cleanup project.
This is where automated accounting helps, but it cannot replace review. Automation is the assistant. You still need the adult in the room.
How to prevent it with accurate accounting habits
If you want fewer surprises and more confidence, these are the habits we teach clients (and we build into our online bookkeeping services for small business).
Use one workflow for deposits
Do not mix methods.
Either:
- Receive payments and use Undeposited Funds, then create deposits properly
or - Use sales receipts and match deposits cleanly
Consistency is what makes matching easy.
Apply every payment
Unapplied payments are not “fine.” They are a warning light.
Reconcile monthly, no exceptions
Your reports are only as trustworthy as your reconciliations.
Keep customer and vendor lists clean
If you have “Home Depot,” “Home Depot 2,” and “HD,” you are going to miss patterns and double-pay something eventually.
Make AR and AP boring
If accounts receivable automation and accounts payable automation feel chaotic, it usually means the foundation is messy.
Clean first. Then automate.
When it is time to bring in a pro
If you are thinking any of these, it is probably time:
- “I do not trust my QuickBooks numbers.”
- “I am pretty sure we are missing transactions.”
- “I dread opening the books.”
- “I do not know where my profit went.”
- “I want to grow, but I need clean data first.”
That is what we do at Perlinger Consulting, Inc. We provide small business accounting and bookkeeping services that make your reports usable again, not just “technically complete.”
If you are searching for a bookkeeper you can trust and you are in Littleton, Centennial, or the Denver Metro, we are local and hands-on. If you are outside Colorado, we also support clients nationwide.
Related reading (internal links)
- How to Read & Use Your Profit & Loss Like a Pro: Read it here
- Why Every Colorado SB Needs a Financial Life Jacket: Read it here
- Local Bookkeeper Or Online: Read it here
Helpful external resource
- QuickBooks help article on Unapplied Cash Payment Income: Read it here
Need help finding what is hiding in your books?
Perlinger Consulting, Inc. provides bookkeeping services for small business owners in Littleton, Centennial, the Denver Metro, and beyond. For 23+ years, our trusted team has delivered accurate accounting services for small business, bank and credit card reconciliations, accounts receivable automation, and accounts payable automation support so your numbers are clear and usable.
Call 720-290-4389 or visit perlingerconsulting.com to get your books cleaned up and finally feel confident about what your reports are telling you.
Friendly disclaimer
This article is for educational purposes only and is not legal, tax, or financial advice. Every business is different, and QuickBooks setups vary. If you want help applying these steps to your specific file, talk with a qualified professional who can review your accounts and your reports with you. Perlinger Consulting, Inc. is not responsible for decisions made based on this content, and results will vary depending on the condition of your bookkeeping and the information available. Not responsible for 3rd party links.