Rent Security Deposit

I'd be happy to outline the steps below so you can record your tenant's rent deposit in your QuickBooks Online (QBO) account, @liz_carr.

In QBO you can create a security deposit account to record the rents of your tenants. To add an account in your chart of accounts, here's how:

1. Go to Settings and select Chart of Accounts.
2. Select New to create a new account.
3. In the Account window, select the Account Type ▼ dropdown. Then choose an account type.
4. Note: if you see the New category window instead of the Account window, you’re creating a subaccount under a premade parent account. If you need to create a new account type, switch to accountant view.
5. In the Detail Type ▼ dropdown, select the accounts receivable (A/R) as detail type to fit with the transactions you want to track.
6. Give your new account a name. Tip: Use the detail type description to create a name that describes what you're tracking.
7. Add a description.
8. When you're done, select Save and Close.

You can also visit this article if you like a visual step-by-step guide on how to add an account in your COA: Add an account to your chart of accounts in QuickBooks Online.

Once you're all set, you can proceed to record the security rent deposit that you received from your tenant. You can refer to this article for the steps to record deposits: Record and make bank deposits in QuickBooks Online.

If you're unsure with the steps that I've mentioned above, you can also consult your accountant. This way, they can guide you on recording your deposits in QBO.

Additionally, I'll be also leaving these handy articles for future reference:

• Categorize and match online bank transactions in QuickBooks Online.
• Handle a customer credit or overpayment in QuickBooks Online.

If you need further help with recording a deposit into your QuickBooks Account, feel free to get back to me. Providing assistance and making sure you're on track with your business is my priority, @liz_carr. Have nice day!

@liz_carr 

1) Create an 'Other current liability' account called "Security Deposits"

2) Create a service item called "Security Deposits" and under 'Income Account', select the liability account from step 1.

3) Use that item on an invoice or sales receipt to bill your tenant.  Then, receive the payment.

This will keep the security deposits as a liability on your balance sheet, which is what you want as it is not taxable income. 

Then, when, and if, you refund the deposit, you can create a refund receipt for the same item.  Any deposits that are not refunded will need to be reported as income.  Do that by creating a journal entry: debit the customer deposit liability account and credit the appropriate income account. 

One caveat: If the security deposit is used as the last month's rent, then you need to report it as income when you receive it - prior to or at the beginning of the lease period.  Do not record it as a liability.  A true security deposit is not your money, it is the tenant's.

@Kurt_M 

The OP didn't ask how to create an account.

They asked:

How do I input a tenants rent deposit in quickbooks online?

You didn't answer the question. @Rainflurry did.

totally agree with prior poster, please do not just copy paste some answer that has no relevance to people's questions. Thank you so much @Rainflurry