Hi!
I am currently setting up QBO for an insurance agency company in Singapore. We collected premiums from our clients and placed it in a trust account. I have few issues on hand. Kindly assist.
1. How to record premiums collected to be paid to Insurance Companies.
2. How to record commission from Trust Account to our Operating bank account.
Appreciate your kind reply.
Thank you.
Solved! Go to Solution.
Let me guide you on how to record premiums and commissions in QuickBooks Online, BelleJK.
The money doesn't belong to you until it is used to pay for service. Thus, it will only turn into income once you invoice the customer and receive payment against it. You can create a liability account to track the amount you receive from your customers. I've outlined the steps below.
Then, create a product or service item that uses the trust liability account.
When creating a bill, use the same Trust Account category to post the funds correctly. This will also automatically put the transactions into the correct A/R and A/P accounts. Here's an article that you can refer to for the complete steps: Record a retainer or deposit. However, I still recommend reaching out to your accountant for other ways on how to record them.
Additionally, QuickBooks downloads and tries to match with transactions you've entered. You can read this article for your reference: Categorise and match online bank transactions in QuickBooks Online.
Let me know if you have any other concerns about recording insurance proceeds in QuickBooks. I'll always be right here to get back to you.
Let me guide you on how to record premiums and commissions in QuickBooks Online, BelleJK.
The money doesn't belong to you until it is used to pay for service. Thus, it will only turn into income once you invoice the customer and receive payment against it. You can create a liability account to track the amount you receive from your customers. I've outlined the steps below.
Then, create a product or service item that uses the trust liability account.
When creating a bill, use the same Trust Account category to post the funds correctly. This will also automatically put the transactions into the correct A/R and A/P accounts. Here's an article that you can refer to for the complete steps: Record a retainer or deposit. However, I still recommend reaching out to your accountant for other ways on how to record them.
Additionally, QuickBooks downloads and tries to match with transactions you've entered. You can read this article for your reference: Categorise and match online bank transactions in QuickBooks Online.
Let me know if you have any other concerns about recording insurance proceeds in QuickBooks. I'll always be right here to get back to you.
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