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safeharborbkp
July 23, 2024
Question

Escrow account tracking

  • July 23, 2024
  • 1 reply
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I have a client that has multiple escrow bank accounts for their business. We are working in QB Online. Their escrow accounts cannot be connected with their chart of accounts for their general fund bank accounts, or it will over-inflate the budget numbers. However, they would like the escrow accounts to be included on the balance sheet for financial statements. Would you recommend a separate QBO account for each escrow fund and manually pulling together financial statements in excel spreadsheets; or would you set up the escrows as Classes in the same QBO file, and run the financial statements by class instead? I'm also considering setting up the escrows as Projects, but then I think that would pull them into the budget numbers. Other suggestions are welcome too. Thanks.

1 reply

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GebelAlainaM
July 23, 2024

Hello there, @safeharborbkp. I have some helpful details about managing your client's escrow accounts.

 

In this case, I'd recommend working with your accountant to properly identify the best approach suitable for your business structure to include the escrow account on the balance sheet for the financial statement you should be using.

 

If you need one, go to our Find a ProAdvisor website. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

 

Here's how:

 

  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 your business. You may visit each ProAdvisor's profile to learn more information about them.

 

To learn more about the chart of accounts, check out this guide: Add an account to your chart of accounts in QuickBooks Online.

 

Furthermore, I'm leaving this article for future reference in handling accounts in QuickBooks so your books always match your bank and credit card statements: Reconcile an account in QuickBooks Online.

 

Don't hesitate to post again in this thread for clarification on managing escrow accounts in QuickBooks. I'm always here to assist you.

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