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T
teresa-karega-gm
October 22, 2022
Question

Personal injury legal practice using projects. What is the best way to link the insurance payment for the client to the project?

  • October 22, 2022
  • 1 reply
  • 0 views
The client is set up as the customer linked to a project. Should the insurance company be a sub-customer when the same insurance company may settle claims for multiple clients/projects?

1 reply

Rubielyn_J
Rubielyn_J
October 22, 2022

Let me share some insights how to link the insurance payment for the client, @teresa-karega-gm.

 

We can open the payments, then select the client under the Name column. This way, the insurance payment will be linked for the correct client to the project. 

 

Otherwise, you can add the insurance company as a sub customer. For more information about handling your projects in QBO, you may check out this article: Set up and create projects in QuickBooks Online.

 

Additionally, let me share this article to guide you use projects to track your labor costs and profitability: Track hourly labor costs and profitability by project in QuickBooks Online.

 

Feel free to comment below if you have further concerns with managing your projects in QBO. I'll be happy to lend a helping hand. Keep safe!

T
teresa-karega-gmAuthor
October 25, 2022

We have clients, who will eventually receive a settlement (cash) from us. We receive cash (income or deferred revenue depending on type of case) from insurance companies. So, the project is the case type and the client name. Should the customer be the insurance company that is sending us money? Can a customer be linked to more than one project? Ultimately, our client will be a vendor because the firm will write him/her a check.  

L
LollyNino_C
October 25, 2022

It's great to have you here in the Community, @teresa-karega-gm. I am happy to help you with your concern. 

 

As Rubielyn_J mentioned, We can open the payments, then select the client under the Name column. This way, the insurance payment will be linked to the correct client for the project. 

 

We can walk you through how to link the insurance payment for the client. However, we're unable to advise which category to choose since each business has a unique way of handling transactions. It would be best to consult an accountant about this matter. Usually, such costs are defined as project maintenance costs or line management costs. They will advise you on the best option for you.

 

You can read this article: Set up and create projects in QuickBooks Online for additional details on managing your projects in QBO.

 

Just in case, you can also check out this link: Projects FAQ. It contains links to different topics that answer most of your concerns about projects. 

 

If you have any additional questions about managing your projects in QBO, feel free to comment below. I'll be glad to offer my assistance. Be careful!

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