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January 12, 2021
Question

If i keep money in an account to hold it then write a check to deposit in another account to use for a job how is it recorded in quickbooks

  • January 12, 2021
  • 1 reply
  • 0 views
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1 reply

Moderator
January 12, 2021

Hi there, cjsmith1. 

  

Welcome to the Community. We can set up for recording a retainer or deposit. The retainer or deposit is handled as a liability. Though your business is securing the money from a deposit or retainer, it doesn't belong to you until it's hand down to pay for services. When you invoice the customer and receive payment against it, you'll turn that liability into income. 

  

First create a liability account. Here's how: 

 

  1. Click the Gear icon, then choose Chart of Accounts
  2. Tap New
  3. From the Account Type ▼ drop-down menu, select Other Current Liabilities.
  4. From the Detail Type ▼ drop-down menu, Trust Accounts - Liabilities
  5. Enter the mane of the account. 
  6. Press Save and close

Second, Create a retainer item. Lastly, create a trust liability bank account. However, not everyone needs to generate it. For more detailed steps and information, you can refer to this article: Record a retainer or deposit

  

Please touch base with me here for all of your QuickBooks needs, I'm always happy to help. Have a great day and keep safe.