Hello, ronc.
I'm here to ensure you're able to record the security deposit rental in QuickBooks Online (QBO).
To record a security deposit in your QuickBooks account, you may need to create a liability account. Make sure you name the account to Other Assets. Thereafter, you can create the new product and give it the name Security Deposits.
To understand the whole procedure, have a look at the following steps on how to record security deposit in QuickBooks:
- Go to the Accounting and select the Chart of Accounts.
- Click New to create an account for liability.
- Name the liability account as “Other Assets”. You can use this account to collect assets such as security deposits and rent.
Important Note: Those who give security deposits should create a liability account instead of creating an asset account. Then, name this account as Other Liabilities.
After that, you can start creating a new product. You can name this product “Security Deposits”. This will contain information related to the security deposit made to you or by you.
Once done, you can map the product to other liabilities or other assets. Those who receive security deposits can also create sales receipts in order to make it reflect in the right account.
In addition, users who give security can make a Bill so that they can map it to the right account. When you are done, click the “Save and Close” button.
As you create, store, and map the security deposit correctly, you can continue creating the reports using them. The data (related to these deposits) can be viewed in the financial statement in the QuickBooks account. Remember to note these numbers as you create the financial statements.
Note: Incorrect details related to these deposits can cause issues while matching the financial statements such as a ledger, balance sheets, and others. It becomes difficult to solve such inaccuracies.
Also, regarding with the VAT, I would recommend seeking assistance from a professional accountant or HMRC. This way, he/she can help you with proper tracking of your transactions and selecting the appropriate accounts.
If you have any other questions, please let me know by adding a comment below. I'm always here to help. Have a good day!
