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MEH2
Level 1

Can I set up a reserve funds account in a fpr proft company? How will reconciling the account work if one is not an actual bank account but is an account in QuickBooks?

 
3 Comments
DivinaMercy_N
QuickBooks Team

Can I set up a reserve funds account in a fpr proft company? How will reconciling the account work if one is not an actual bank account but is an account in QuickBooks?

 

I'm glad to see you here in the Community, @MEH2.

 

Yes, you can create a reserve funds account in QuickBooks Desktop (QBDT). The setup depends on how you treat this in your books.

 

I'll guide you how:

  1. Go to the Lists tab.
  2. Select Chart of Accounts.
  3. On the Account drop-down arrow, click New.
  4. Select your Account Type.
  5. On the Account Name field, enter Reserve Funds.
  6. Enter the necessary information then Save & Close.

You also have the option to reconcile a non-bank account as long as it has visible transactions in your Chart of Accounts.

 

Just in case you want to review your past reconciliation report, you can refer to this article: Get reports for previous reconciliations in QuickBooks Desktop.

 

You can always come back here if you need anything else. Stay safe.

MEH2
Level 1

Can I set up a reserve funds account in a fpr proft company? How will reconciling the account work if one is not an actual bank account but is an account in QuickBooks?

Thanks for getting back to me.  Any suggestion as to which type of account (bank, other asset, etc)?  I thought about making the new account a sub account of the operating account but didn't know how that would affect the reconciliation.

RCV
QuickBooks Team
QuickBooks Team

Can I set up a reserve funds account in a fpr proft company? How will reconciling the account work if one is not an actual bank account but is an account in QuickBooks?

Let me share some information about setting up an account in QuickBooks, MEH2.

 

For the account type you need to use, it would be best to consult your accountant about this one. They'll help you with what posting account you need to apply when setting up the reserve funds.

 

Once done, you can now add your accounts and sub-accounts in your Chart of Accounts. Just follow the steps below:

 

  1. Click the Lists on the menu.
  2. Choose Chart of Accounts.
  3. Tick the Account drop-down.
  4. Select New button.
  5. In the Account type section, choose one on the list provided.
  6. Tap the Continue button.
  7. Enter the Account details including the Account number.
  8. For the sub-accounts, make sure to click the Sub-account tickbox. Then, pick the parent account.
  9. Press the Save and Close button.

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For more details about this one, check out this article: Create, edit, or delete account in QuickBooks Desktop.

 

Then bank reconciliations done on accounts that have sub-accounts should always be done on the parent account. This means, if your parent account has been reconciled then your sub-accounts are a part of it.

 

For more details about reconciliations, please refer to these articles:

 

I've got a link here where you can find articles about managing your bank transactions: 

https://quickbooks.intuit.com/learn-support/en-us/banking/07?product=QuickBooks%20Desktop.

 

Fill me in if you need a hand with running your financial reports or any QuickBooks related. I'm always here to ensure your success. Keep safe always.

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