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Books03
April 2, 2024
Question

Tuition Payments

  • April 2, 2024
  • 1 reply
  • 0 views

Hi, I am currently working with a client that has a 2018 desktop QB software. They are running into issues with their prepaid tuition accounts. It has been throwing off their balance sheet for 2023. In previous years they used to have an invoice system. However, they stopped doing that and now only make deposits that are made from tuition payments. I also want to mention that they do have a liability account that isn't reconciled or cleaned up. Any thoughts on how you would proceed? I am just looking for a second opinion on this. 

Thanks!

1 reply

MJoy_D
MJoy_D
April 2, 2024

Thank you for posting here in the Community, @Books03.

 

To better assist you, could you please clarify how the prepaid tuition accounts are being recorded in QuickBooks? Additionally, can you tell me more how they enter their invoices in QuickBooks and how it affects their Balance Sheet report? A screenshot will also be a great help. 

 

This will enable me to provide accurate advice on how to proceed effectively. 

 

Thank you, and I look forward to your response.

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Books03Author
April 3, 2024

So they do not do invoicing like they did in 2022. They pretty much input deposits into the income account vs putting in the liability account, then every month they release funds to the operating account. For example, if the tuition is $10,000 then it should be in the liability account and then released to operating account per month depending if the client pays 10/12 months so about $1,000 per month would be released. The issue is that there is just deposits with no reference so it's showing the liability account extremely high when in reality it should match? Also its giving  a negative NET income as well. I do not have the balance sheet with me to be able to share. Hope this made sense. 

4
4Gal
April 3, 2024

@Books03 

Firstly, ask your client to run the Verify/Rebuild Data utility. Did they encounter any error message?

 

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