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Join nowOur company uses 1 bank account for all its operations and reconciliations.
So I was wondering what are the downsides to having our Rent in Trust/Security Deposits/Retentions Trust/Operation all as sub-accounts to our Main Bank Account so we can better reconcile it with the our bank.
I am just worried about reporting and errors issues of this technique.
Welcome to the Community, @Lulwa.
If the main/parent bank account is not connected to QuickBooks Online (QBO) online banking, then there will be no downsides. Having sub-accounts will make it easy for you to track each transaction, especially in the reports.
On the other hand, if it's connected to online banking, just make sure to verify it with your bank as to how the transactions will be downloaded to QBO to avoid any issues.
Just in case, I'll add these articles for future reference:
Let me know if you have any other concerns or questions by clicking the Reply button below. I'm always happy to help. Have a good one!
@Lulwa wrote:
Our company uses 1 bank account for all its operations and reconciliations.
So I was wondering what are the downsides to having our Rent in Trust/Security Deposits/Retentions Trust/Operation all as sub-accounts to our Main Bank Account so we can better reconcile it with the our bank.
I am just worried about reporting and errors issues of this technique.
If you use sub accounts, then you never post to the parent, something like
BofA
>> operating funds
>> escrow 1
>> escrow 2
etc
But, you need to check the state laws, most states that I am familiar with have regulations/laws that funds held in escrow must be in a separate account from operating funds. Some states even require that if the escrow funds draw interest, you pay that interest to the owner of the escrow amounts.
Is there a reason not to post to parent?
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