How can I set up an escrow account in online Quickbooks? Everything tried doesn't work.

Thanks for joining the Community, thepatristicgrp7. I have some helpful details to share about how to set up an escrow account.
 

In QuickBooks, these types of accounts are considered liabilities. A liability account can be created to record the loan and its associated payments. This will also track what you owe. Here's how it's created:
1. Go to the Gear (⚙) icon, then Chart of Accounts.
2. Click New.
3. In the Account Type ▼ drop-down menu, choose Long Term Liabilities. If you intend to pay off your loan by the end of this current fiscal year, pick Other Current Liabilities.
4. Use Notes Payable for the Detail Type ▼ dropdown.
5. Title the account with a relevant name.
6. Input when you'd like to begin tracking money from the When do you want to start tracking your finances from this account in QuickBooks? ▼ menu.
7. Enter the loan amount as a negative number.
8. Select Save and close.

Once your escrow account has been created, you can proceed with recording funds received from the loan and entering payments.

If you're interested, Intuit offers a service called Live Bookkeeping which can be used to guarantee your books are accurate and up-to-date when it comes time for taxes.

Please don't hesitate to respond here if any other questions arise. Have a wonderful day!

Why does Quickbooks online consider an escrow account as a liability when it is a current asset with a beginning balance.  How are we suppose to reconcile the end of year statement.  Can you provide another answer to this question classifying the Escrow account as a current asset?

Hi there, @asm212.

Thank you for joining the thread. Allow me to share additional information about setting up the escrow account in QuickBooks Online (QBO).

Basically, escrow is a bank type of account used to hold funds from a lender. You can either set this up as a liability or an asset account depending on how you want to post your records. 

For further guidance in setting up this account, I would recommend seeking help from a professional accountant. This way, they can determine the specific type that fits with your business.

For more tips about creating an account in QBO, I recommend checking out this link: Add an account to your chart of accounts in QuickBooks Online.

Also, you may open this link and review the suggestions provided by qbteachmt about creating an escrow: https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/how-do-i-create-an-escrow-o....

Moreover, here's an article you can read more about reconciling an account in QBO.

If you have any other questions about setting up an escrow account, please let me know by adding a comment below. I'm more than happy to help. Have a good one!

We have several mission accounts that we want to set aside money for each month to be paid out when they are needed.  The amounts change each month, since they are based on the total of our general giving.  I don't know how to set money aside in each account and hold it until it is needed, since the amount changes each month.  I'm at a loss as to how to handle this.  Can you help?

Thanks for joining us here, @kateconrad.

I'll share some information about accounts in QuickBooks. To confirm, are you trying to record an escrow account? If so, you'll want to create a bank account type and use a liability account to offset it. However, it'll be best to consult your accountant first to ensure your book is accurate.

Here's how to create an account:

1. Go to Accounting, then select Chart of accounts.
2. Choose New.
3. From the Account Type drop-down, pick Bank and then Trust account from the Detail Type.
4. Enter other account info.
5. Click Save and Close.

For more information about the chart of accounts, check out this guide: Add an account to your chart of accounts in QuickBooks Online.

After creating the accounts, record a journal entry. This way, you'll be able to move the money from one account to another. Just go to +New and then select Journal entry.

Also, feel free to browse this link in case you need help managing bank-related tasks. It contains bank topics with articles: Find help with bank feeds and reconciling accounts.

Please don't hesitate to reach out to me again through this thread if you still have questions about mission accounts. I'll be around for you @kateconrad. Have a wonderful day ahead.

I have a client that wants to buy a website name from us.  Is there a way to create an ESCROW account in QUICK BOOKS to safely protect the buyer and the seller during the sale/transfer?

Setting up an escrow account in QuickBooks is simple, @digitalrhythm. And I'm happy to help you complete your task.

Also, you may open this link and review the suggestions provided by qbteachmt about creating an escrow: https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/how-do-i-create-an-escrow-o...

On top of that, I'd recommend consulting with a professional accountant for additional assistance in setting up this account. This enables them to identify the specific type that is suitable for your company.

Moreover, checkout the following articles about how to manage chart of accounts and transfer transactions in QuickBooks: 

• Transfer funds between accounts
• Learn about the chart of accounts in QuickBooks Online.

Let me know if you have another questions about managing escrow transaction and account in QuickBooks. Happy to help you out again. Keep safe. 

Hi Michelle, Thanks for the quick reply. I'll get with our accountant and see how we can proceed!

Still waiting to hear back from our accountant who's on a vacation!  My question is HOW do you protect the seller of a domain name from being scammed out of their domain name, and HOW do you protect the buyer from being scammed out of their funds.  The goal of a DOMAIN SALE ESCROW - is to put BUYER funds on hold that are protected from the BUYER and the SELLER until criteria is met (The Domain name has been properly transferred to the BUYER.  We've used ESCROW.com in the past but we have a BUYER who feels more comfortable using QuickBooks.  Can you see the challenge here? We are the seller and want to protect our own interests and of course do this proper so that they get the Domain Name they want to buy from us.  Thanks!

Thanks for getting back to us.

I'm here to provide information about setting up an escrow account in QuickBooks Online (QBO).

Since QBO is used for tracking purposes, we can only provide information on how to set up an escrow account. To do that, you can follow the steps provided by my colleague, Angelyn_T. 

To help you set up this account accordingly, I'd still suggest getting in touch with your accountant.

You may also want to check out this article to identify official Intuit correspondence and websites that will help you avoid potential fraud: Identify suspicious activity, phishing scams, and potential fraud.

Additionally, it's preferable to reconcile your accounts monthly to ensure they match your bank statement. This way, your books will show as balanced and accurate.

Feel free to get back to us anytime if you have additional concerns about setting up an escrow account in QBO. We're available 24/7 to answer your queries. 

Hello, 

The company that I work for, opened an escrow bank account. I want to link the bank account to the QB online. Therefore, I created a trust bank account. I don't know if I should also create a liability account or is this a double entry?

Also, How do I record the deposit?

This money it's only held and will be passed through.

I hope somebody can help me. 

Thanks you!