When I move funds from my security deposit account to unpaid rent or contract labor to cover repairs, I use a journal entry, but then how do I record the bank withdrawal of those funds from the deposit account so it shows the correct balance?
I can share some information about managing rental properties in QuickBooks Desktop, @SusanSh.
To track your rental income and expenses you may need to set up the following:
You can find thorough instructions on how to record transactions for rental properties you manage in QuickBooks Desktop: Record transactions for a property management company.
To make sure that your accounts will show the correct balance using journal entries, I suggest consulting an accountant for guidance. See this article for more information about adding and editing a journal entry: Create a journal entry in QuickBooks Desktop for Windows or Mac.
Here's more information about creating General Journal Entry to remove AR and or AP balances from a cash basis balance sheet: Resolve AR or AP on the cash basis Balance Sheet with journal entries.
Keep me posted if you need further guidance in recording your transactions. I'm always glad to help in any way I can. Have a wonderful day!
Thanks for responding. The journal entry did what I needed--$119 went to rent and $341 went to contract labor. But I need to actually transfer the $460 from the deposit account to reflect the reduction in the balance and match the bank account. Can you tell me how to do that please without canceling out the deposits to rent and contract labor?
Thank you for responding. The journal entry did what I needed--$119 went to rent and $341 went to contract labor from the deposit account. But please tell me how I can actually reduce the deposit account by $460 without it canceling out the journal entry?