How do I record rent security deposits?

I’m glad to see you in the Community, prairiedawn.

Recording your rent deposit is quick and easy. We’ll have to create an item for the transaction and link it to a liability account.

Here’s how:  

1. In QuickBooks Online (QBO), hover your mouse to the Sales menu on the left panel and select Products and Services.
2. Performing this action will take you to the Sales page.
3. Go to the Products and Services tab and click the New menu to open the Product/Service information screen.
4. Tap the Service menu to see more details.
5. Enter how you wish to call the item in the Name box, like rent deposit.
6. In the Income account drop-down, choose the liability you wish to use for the item.
7. Fill in the remaining fields.
8. Click Save and close.

Now that we’ve added the item, let’s create a sales receipt and use the newly added item to the entry. For additional resources, the links below will guide you on how to set up product and service items you buy and sell but don't track as part of your inventory. You’ll also see the instructions to change their item types and set up accounts to your chart of accounts.

• Add product and service items
• Change product and service item types
• Add an account to your chart of accounts
• Learn common accounting terms

Reach out to me again if you have other QuickBooks concerns or questions about rent deposits. I’ll be around to answer them for you. Enjoy the rest of the day.