Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
I am using QuickBooks online for the company I work for. We signed up for Auto insurance in June 2020 with a down payment of $6500.20. the total policy premium quoted to us was $32227. we were given an option to pay in 10 equal instalments of $2558.96. the company suddenly increased the premium and now the total premium went up to $39000. this resulted in increase in installment to $3611.09 and one extra payment of $5772. The company is thinking now to cancel this policy and start a new policy with a different insurance company. I am little confused how to handle this change in policies. Also how to record the premium payments. do I need to create an accounts payable for the total premium and then apply the installment payments, but then we are cancelling the policy??? so how do we record it
Please help
Solved! Go to Solution.
Thank you for the detailed post, NNG Enterprises.
Allow me to help you record these transactions in QuickBooks. First off, you can create a liability account with a balance of $32,227.
Then, record the payments by creating expense transactions using the account you just created. You can record the increased premium amount via journal entry. You can check this with your accountant to make sure it's recorded correctly.
Furthermore, canceling the insurance means you have to reverse the JE to zero out the balance of the liability accounts. You'll need your accountant for this.
You can check this article to learn more: Record a retainer or deposit.
If you have other questions about recording your health insurance premiums, don't hesitate to leave a reply.
Thank you for the detailed post, NNG Enterprises.
Allow me to help you record these transactions in QuickBooks. First off, you can create a liability account with a balance of $32,227.
Then, record the payments by creating expense transactions using the account you just created. You can record the increased premium amount via journal entry. You can check this with your accountant to make sure it's recorded correctly.
Furthermore, canceling the insurance means you have to reverse the JE to zero out the balance of the liability accounts. You'll need your accountant for this.
You can check this article to learn more: Record a retainer or deposit.
If you have other questions about recording your health insurance premiums, don't hesitate to leave a reply.
Thank you for your response
So I bought liability insurance for my vending machine company, I pay 25 a month for a total of 300. I paid the first and last month as a down payment. how do I record the 50 I paid as a down payment and what about the 250 I still have to pay throughout the year? and each monthly payment I make in the future. thank you
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
For more information visit our Security Center or to report suspicious websites you can contact us here