Reserve funds

Making sure you're able to set up the account to track your reserve funds is essential for your business process, @zapkvr. I'm here to help and guide you to achieve this. 

In QBO, the specific account type named Accumulated Reserves is unavailable. You can use the Equity account type instead (or reach out to your accountant for guidance to ensure you use the correct type). Then, select the appropriate detailed type that fits. Here's how:

1. Open your QBO company and select the Gear icon.
2. Next, click Chart of Accounts.
3. From there, select New.
4. In the Account Type field, choose Equity.
5. Then, in the Detailed Type, select the one that is related to the accumulated reserve.
6. Name it as Accumulated Reserves.
7. When done, click Save and close.

To ensure you set this up correctly, I recommend asking for guidance from your accountant. If you're not affiliated with one, you can use our Find an Accountant tool to look for one near your area. For reference, check out this article: Learn about account types and detail types in QuickBooks Online.

Moreover, you'll want to perform the reconciliation process regularly to make sure your QBO bank balance matches your real-life bank statement. 

If you have any other questions about managing your account, please don't hesitate to leave a reply below. I'm always here ready to lend a hand. Have a good one.

@zapkvr 

You can use the Class feature in QBO Plus or Advanced to separate data between reserved funds and unreserved funds.

Hi zapkvr,

I'm a newbie but needed to do what you want - I think

I have QBO

Go to chart of accounts

click NEW

ACCOUNT NAME - Accumulated Reserve - XXX

ACCOUNT TYPE & ACCOUNT DETAILS - select CASH AND CASH EQUIVALENTS

TICK Make this a sub-account

I hope you have some luck 🙂

PARENT ACCOUNT - select EQUITY

DEFAULT TAX CODE - I selected OUT OF SCOPE or whatever you typically use for a NFP