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Paul007
October 31, 2022
Question

advances to suppliers

  • October 31, 2022
  • 1 reply
  • 0 views

I believe advances to suppliers, for example paying a lawyer a retainer, should be recorded as an asset. Until the invoice is received, you don't know how much the final cost will be or the HST that would apply.

 

Am I correct in assigning the retainer paid as an asset? What tax-line mapping would apply?

1 reply

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Amanda-B
October 31, 2022

Hey there Paul007,

 

Thanks for reaching out to us here. QuickBooks Online is a great tool able to help keep your books balanced. Making sure you're recording your transactions properly is an essential step for maintaining clean books. I can point you in the right direction.

 

To ensure accuracy in your books, I recommend reaching out to an accounting professional for expert advice on creating these types of transactions. They'll be able to guide you in choosing the correct transaction type as well as which accounts to affect so that your accounts can end up with the right balance. You can add your accountant to your books by going to the My Accountant tab of your QuickBooks account. You can also find an accountant that has experience using QuickBooks near you by clicking on the Find a pro to help option in that section.


If you have any other questions, feel free to reach out here.

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Paul007Author
October 31, 2022

I have a BComm and have been using QuickBooks for twenty years. Your answer is not an answer.

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