Reserve funds

Making sure you're able to set up the account to track your reserve funds is essential for your business process, @zapkvr. I'm here to help and guide you to achieve this. 

In QBO, the specific account type named Accumulated Reserves is unavailable. You can use the Equity account type instead (or reach out to your accountant for guidance to ensure you use the correct type). Then, select the appropriate detailed type that fits. Here's how:

1. Open your QBO company and select the Gear icon.
2. Next, click Chart of Accounts.
3. From there, select New.
4. In the Account Type field, choose Equity.
5. Then, in the Detailed Type, select the one that is related to the accumulated reserve.
6. Name it as Accumulated Reserves.
7. When done, click Save and close.

To ensure you set this up correctly, I recommend asking for guidance from your accountant. If you're not affiliated with one, you can use our Find an Accountant tool to look for one near your area. For reference, check out this article: Learn about account types and detail types in QuickBooks Online.

Moreover, you'll want to perform the reconciliation process regularly to make sure your QBO bank balance matches your real-life bank statement. 

If you have any other questions about managing your account, please don't hesitate to leave a reply below. I'm always here ready to lend a hand. Have a good one.

Exactly what I DIDNT want

Its an NFP

There is no Owners' Equity

All the other SME software does this

Intuit is a multi billion dollar company and cant even get something so basic as this right.  

Unacceptable 

I AM the accountant 

I AM also a Pro Advisor

And thanks for your reply.

Kr

Extraordinary 

A multi billion dollar company that cant even get the basics right. 

Unacceptable 

@zapkvr 

You can use the Class feature in QBO Plus or Advanced to separate data between reserved funds and unreserved funds.

@zapkvr 

Just create an equity account called Reserve Funds, Operating Surplus, or Unrestricted Funds.  No one mentioned using Owner's Equity.    

Thanks for your reply

The Account type must be of the following:

Current liabilities

AR

Current assets

Cash

Fixed assets

Non current assets

A/P

Credit card

Non current liabilities

Owners equity

Income

Other income

Cost of sales

Expenses

Other expense

There is NO account classification for beneficiary loans

There is NO account classification for accumulated or other reserves

Kr 

Also, did I mention that the equity balance is labelled 

Shareholders funds

This is what I am trying to change 

There are no shareholders

Its an NFP

Thank you

QuickBooks does not offer a specific solution to this problem. As an NFP, your report should present both unrestricted and restricted funds, correct? You can use the Clas feature to meet this requirement as I mentioned earlier.

@zapkvr 

Your original post says you're using QB Online.  It sounds like you're using Desktop.  

There is NO option to create an account called "reserve funds" that doesnt come under a heading "Owners equity"

The account type must be one of the following

Current liabilities

AR

Current assets

Cash

Fixed assets

Non current assets

A/P

Credit card

Non current liabilities

Owners equity

Income

Other income

Cost of sales

Expenses

Other expense

Honestly, that part of this is so hard to understand?

Kr 

Thanks for that but when I create the account it must be of a type OWNERS EQUITY

There isnt any other option

Thanks  

Hi zapkvr,

I'm a newbie but needed to do what you want - I think

I have QBO

Go to chart of accounts

click NEW

ACCOUNT NAME - Accumulated Reserve - XXX

ACCOUNT TYPE & ACCOUNT DETAILS - select CASH AND CASH EQUIVALENTS

TICK Make this a sub-account

I hope you have some luck

PARENT ACCOUNT - select EQUITY

DEFAULT TAX CODE - I selected OUT OF SCOPE or whatever you typically use for a NFP