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.
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: