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Ugur01
January 31, 2023
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Categorizing Funds in and out of a Real Estate Agent's Bank Account.

  • January 31, 2023
  • 1 reply
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Hello,

Customers send money to the real estate agent's bank account to purchase real estate (land, house, etc.), and the real estate agent sends the money to the property owner. In short, it is an intermediary between the seller and the buyer.
How can I categorize money coming in and out of a realtor bank account in Quickbooks? What category should I put it under?
Note: Realtor takes commission separately. There is no commission in the relevant amount.

Best answer by Rainflurry

@Ugur01 

 

Create an Other Current Liability account called 'Escrow - Seller/Buyer' or something similar for these deposits and use that account for the category when you record the deposit of the buyer's funds.  Then, when you pay the seller, use that same liability account as the category on the check/expense entry.  That will increase the liability account when you receive the funds and reduce it when you pay the seller.

1 reply

Rainflurry
RainflurryAnswer
February 1, 2023

@Ugur01 

 

Create an Other Current Liability account called 'Escrow - Seller/Buyer' or something similar for these deposits and use that account for the category when you record the deposit of the buyer's funds.  Then, when you pay the seller, use that same liability account as the category on the check/expense entry.  That will increase the liability account when you receive the funds and reduce it when you pay the seller.

    U
    Ugur01Author
    February 1, 2023

    @Rainflurry 

     

    Thank you a lot. 

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