Re: Recording tenant security deposit payments received
I appreciate your instructions, but your instructions are based on what I would do to enter security deposits made INTO a bank account.
Our security deposit payments have already been deposited in the bank. And this bank holds all the security and last months rent deposits (money is deposited directly into this separate account). So these funds are actually in the bank account already and under the chart of account as 'bank' and this bank account has a live feed into QB online. So anytime we have sec deposits, it is automatically fed into QB and we simply have to tag each transaction.
The issue is that the funds in this bank account should be converted to a 'other current liability'. Bc as it stands now, it would appear as an asset on our BS when in reality it should be a liability.