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Q
qbofree5-gmail-c
February 16, 2023
Question

HOA reserve accounting steps

  • February 16, 2023
  • 1 reply
  • 0 views

We are a small condo association and are looking for help in recording non operating expenses for reserve accounts.  How do we record the transaction to fund this account?  Any help is greatly appreciated.

1 reply

C
CharleneMaeF
February 16, 2023

I'm here to help you out, qbofree5.

 

Let's start by creating new accounts in QuickBooks for the reserve accounts. Here's how:

 

  1. Go to Settings ⚙ and select Chart of Accounts.
  2. Select New to create a new account.
  3. In the Account Type ▼ dropdown, choose an account type.
  4. In the Detail Type ▼ dropdown, select the detail type that best fits the transactions you want to track. Learn more about detail types.
  5. Give your new account a name.
  6. If this is a subaccount of an existing account, select Is sub-account and then enter the parent account. Learn more about parent accounts and subaccounts.
  7. Now let's make sure the account in QuickBooks matches your real-life bank or credit card account. Choose when you want to start tracking your finances. In the Balance field, enter the amount in the account, and determine the as-of-date. Enter today's date if you want to start tracking immediately.
  8. When you're done, select Save and Close.

 

Once the reserve account is created, you can use the Transfer feature to fund the account. I'll show you:

 

  1. Select + New.
  2. Select Transfer.
  3. From the Transfer Funds From the dropdown list, select the bank account that the money is coming from.
  4. From the Transfer Funds To dropdown list, select the bank account that the money is going to.
  5. In the Transfer Amount field, enter the amount being transferred.
  6. Edit the Date field.
  7. Enter a description of the transfer in the Memo field (optional).
  8. Select Save and close or Save and new to complete the transfer.
  9. Select Yes if you double-checked the date.

 

Please keep us posted if you need additional assistance with the process. We're always here to help you out.

Q
qbofree5-gmail-cAuthor
February 16, 2023

Thank you.  The problem we are having is the reserve funds, four of them, are not actually in a separate bank account.  The funds are all in the money market account savings account and we just want to transfer and show balances without actually moving the money from the savings account so that we can still balance the account correctly.  We don't physically move the money.  It is not new income.  A non operating expense.  How to categorize in chart of account and how to transfer funds without actually depleting the balance in the savings account.  Thank you very much for your help.

Tori B
Tori B
February 16, 2023

Thanks for getting back to us, @qbofree5-gmail-c. 

 

Along with the steps my colleague has provided above, I recommend consulting with your accounting professional for this one. Your accountant can review your books and advise the best way to record the transfer based on your business needs. If you don't have an accountant, don't sweat it. You can find one here in our Resource Center. 

 

Please let me know if you have any other questions or concerns. Take care! 

 

 

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