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Join nowI need to understand the different clearing accounts I have. I have a Credit Card and Cash clearing account as well as a Fuel Sales and Non-Fuel Sales Clearing account. The Credit Card and Cash clearing accounts are linked to bank and the Fuel Sales and Non-Fuel Sales clearing account are linked to income. How can I net to equal 0.
Hello there, NewTo23.
I understand that managing clearing accounts can be a bit confusing.
To ensure that the clearing accounts net to zero, you'll want to make sure that the total amount of money coming into the clearing accounts (such as from credit card sales, cash transactions, fuel sales, and non-fuel sales) equals the total amount of money leaving the clearing accounts (such as payments to the bank and transfers to your income accounts).
Furthermore, you can create a journal entry to offset the balances. Here's how:
I also recommend seeking assistance from your accountant to help you choose the correct account.
Additionally, regularly reconcile the transactions in each clearing account by matching them with the corresponding bank and income account transactions to ensure accuracy.
I've added an article on handling daily sales in QuickBooks: Record your total daily sales.
Let me know if you have more questions about QuickBooks clearing accounts. I'm always here to help. Take care!
Presumably, the balances in these accounts net to $0, correct?
To clear these balances, you need to make a journal entry. Credit card and income account types are cleared with a debit if they have a positive balance and a credit if they have a negative balance. Bank account types are cleared with a credit if they have a positive balance and a debit if they have a negative balance.
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