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dfrancoeur65
dfrancoeur65
January 22, 2019

Managing Security Deposits

  • January 22, 2019
  • 1 reply
  • 0 views

I was wondering if anyone else had better solutions to managing a high volume of security deposits?

Right now my team handles about 40-60 security deposits a month. I've heard of some rental property companies with hundreds during a month.

These are deposits that our company takes in to cover due diligence costs (appraisal costs and underwriting) and to make sure that the customer is invested in the process. 

Logging all of these deposits gets pretty tedious to do in QB.

It is a lot of creating, managing, refunding, partially refunding, deducting that means a lot of journal entries and manual entry.

Our interim solution: My team is using a combination of Stripe, TransactionPro (a QB app), and QB to cut down on manual entries. Does anyone have a better solution?

 

    1 reply

    john-pero
    john-pero
    January 23, 2019

    We record rent securityvdeposits as a Sales Receipt posting current liability for deposits. Deposit directly to banking if one at a time, to Undeposited Funds if batch deposited to banking.

     

    When it comes time to refund, cut a check to customer posting the liability account. The only other step would be if deposits are forfeited or applied to new charges. I would use a customer credit memo for that which takes the held deposit and converts it to a prepayment to be applied later.

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