Escrow Accounts

SMCall2021 · ‎April 02, 2022

Using QB Accountant Desktop

I have a new client that is a Property Management Co.

Looking over their books i found well a few mistakes to say the least, but my major concern is the Escrow account.

They are using Rentec to track the in's and out's of the rent paid, expenses, etc.

but in QB they have the Bank Account Escrow where the depo are made, that is correct...

BUT they also have a COA set up as Other Current Liability - not exactly sure why they would have set up that account???? That is my question???

The Refunds should come out of the Escrow Bank Account and

any non-refundable (i.e. expenses) should come out of the Escrow Bank account and transferred to the operating account.

Please help..

Thanks

Smccall

Jen_D · ‎April 02, 2022

Thanks for reaching out to us regarding this concern, @SMCall2021.

We wanted to help you rule out the issues you have with your client's company file. While we can't view here the postings on the liability account, we're unable to tell why your client created them.

They can create liability accounts if they keep security deposits, tax or payroll liabilities. For this, you can run some reports of that liability account to identify what those entries for and discuss it with the client.

Then, you can transfer the entries to their appropriate accounts to ensure they are properly tracked.

Here is our resource guide to help users set up Property Management in QuickBooks Desktop: Record transactions for a property management company.

Please post here again for additional help. I'll be right here to assist you. Have a good one!

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