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K
katiear
October 6, 2023
Question

SETTING UP AN ESCROW ACCOUNT

  • October 6, 2023
  • 2 replies
  • 0 views

how do I go about setting up an escrow account to capture funds set aside to pay taxes on a quarterly basis? 

2 replies

R
rvrfrf
October 6, 2023

Thanks for reaching out to the Community, katiear.

 

You can create accounts from your Chart of accounts screen.

 

Here's how:
 

  1. In the left navigation bar, go to Transactions, then Chart of accounts.
  2. Click New.
  3. Use your Save account under drop-down list to specify what you want to save the account under.
  4. Choose a Tax form section.
  5. Enter an Account name and any other necessary details.
  6. Select Save.

 

If your escrow account has a loan associated with it, I'd recommend following the steps from our Set up a loan article.

 

I've also included a detailed resource about setting up accounts which may come in handy moving forward: Add an account to your chart of accounts

 

I'll be here to help if there's any additional questions. Have a great Friday!

K
katiearAuthor
October 9, 2023

ZackE

 

To give further clarification on this matter. 

We setup an account labeled as an escrow account to capture funds set aside to pay quarterly taxes.

Currently, it's setup as an INCOME ACCOUNT under a Deferred Income Account Name.

We are about to file the taxes and the business owner does not want this line showing under income.

We thought we could move it to a RETAINED EARNNGS ACCT but QB is not allowing us to.

 

Can you tell us what account we should move it to to capture the funds? I hope i'm making sense.

Thank you 

 

R
rvrfrf
October 9, 2023

Thanks for following up with the Community, katiear.

 

To properly identify which type of account you should be using, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

 

Here's how it works:

 

  1. Go to our Find a ProAdvisor page.
  2. Use the City or ZIP search field to specify a location.
  3. Select Find a ProAdvisor.
  4. Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.

 

Once you've found an accountant, they can be contacted through their Send a message form:
 

  1. Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.


     
  2. Enter your appropriate info in the Your name, Your email, and Your phone number (optional) fields.


     
  3. Hit Send message.

 

You'll also be able to find many detailed resources about using QuickBooks in our help article archives.

 

I'll be here to help if there's any additional questions. Have an awesome Monday!

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