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J
Jill_MW
November 1, 2020
Question

Recording an upfront payment to a customer account (an insurance payout)

  • November 1, 2020
  • 1 reply
  • 0 views

Hi. 
We’ve recently taken on a job that involves and insurance settlement. My question, in quick books how do I record this deposit into an account and then manage that account separately for invoices that need to be paid. (obviously the money goes into our business account but I’ll need to create a liability account on quick books to transfer those funds to?)

thanks! 

1 reply

Rebecca R
Rebecca R
November 2, 2020

Hi there Jill,

 

Thank you for being part of the QuickBooks family. Accurately recording payments for work that you do for your customers is a crucial step in balancing your books. Luckily QuickBooks Online makes it easy for you to keep track of these types of deposits. Let me explain how.

 

Recording a deposit will show that the money you're holding doesn't belong to you until you've used it to pay for services. When you invoice the customer for the job and receive payment against the invoice, the liability turns into income. The comprehensive article below goes over exactly how you can set up this deposit in QuickBooks Online:

 

 

Another way to approach this job is by taking advantage of our robust Projects feature. It can be used to track income, expenses and profitability for a project. You may find it helpful in this or other situations, to keep things organized for specific jobs. Here's a great article with more information on Projects: Set up and create projects in QuickBooks Online

 

Lastly, reaching out to your accountant might prove helpful. If you're already working with an accountant and you'd like to invite them to work on your QuickBooks account with you, simply navigate to the My Accountant tab on the left, enter your accountant's email, then click Submit. If you'd like to get connected with a QuickBooks certified accountant, the Find a pro to help button at the bottom of the same page will point you in the right direction. 

I hope this helps! Let me know if you have any follow up questions.

 

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