I operate a Mini Storage business. I offer tenant insurance from a 3rd party provider. I collect the insurance along with rent monthly. At the end of the month, I reconcile insurance sales with the insurance provider and they invoice me for the full amount of insurance collections. They pay me a percentage based upon the insurance policy collections.
I established a Tenant Insurance Holding Account to record collections (I do this once per month and use a report provided within my software management solution) through a journal entry. The journal entry is as follows:
Account Debits Credits Description
Tenant Insurance Holding Account $120 Insurance collected from tenants Dec 2023
Business Checking Acct $120 Invoice Payment to insurance company
My issue is the payment transaction never deducts from my Tenant Insurance Holding Account so it has a full running balance of insurance collections that never balance to $0.00
