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sunnychae
March 4, 2023
Question

Clearing Accounts

  • March 4, 2023
  • 1 reply
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I inherited a QB accounts with so many clearing accounts. The bank register is off my thousands. What's the best way to correct this?

 

Do you use clearing accounts? If so, why? I don't see the need.

1 reply

Rainflurry
Rainflurry
March 4, 2023

@sunnychae 

 

Yes, I use clearing accounts all the time.  Clearing accounts are temporary holding accounts that are used temporarily when you can't post directly between two accounts.  They should normally have a $0 balance.  Do your clearing accounts have a balance? 

 

Clearing accounts are super handy in cases where you can't post directly from one account to another.  For example, in QB, you can't have a single entry that posts to both A/R and A/P, so a clearing account is used as an intermediary.  This works great when you have a vendor that is also a customer and need to apply A/P to A/R or vice versa.

 

 

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