How to Record Security Deposits in QuickBooks

QuickBooks software has eased the way accounting transactions are recorded in a business by making the whole process more systematic, efficient and error free. Automatic recording of financial tasks saves up on both time and human resources. In accordance with the kind of industry business is dealing in, user can choose from QuickBooks Pro, Premier, Enterprise, Accountants and their sub-divisions. Despite being easy to use, there are many a times users encounter problems due to which they get stuck and then approach the QuickBooks 24 hours customer service team. One such query encountered by these professional experts is detailed below.

record security deposits quickbooks

Query

User owns a rental business which provides vacation homes on rents and for the same purpose a security deposit is acquired and is needed to be recorded. User wishes to record the deposit in term of an invoice. He is presently doing so by adding the amount under the customer invoice through a different line item for the product or service. The issue under this process faced by the user is that he will have to show the security deposit as an asset rather than qualify it as liability. In true nature security deposit is considered as liability but then how can a liability be added under invoice.

The solution provided by the QuickBooks experts on hearing the problem was as follows –

In the scenario that the security deposit is non-negotiable and not refundable then the same can be considered under income of the user once it has been collected. However, if the same security deposit is refundable then it will be counted under liability. In the second scenario, user will further have to structure a liability account (short term) named as Customer Deposits, under which service will be created – cust dep. In this item screen label Customer Deposits liability account as the income account for the user. Once the user garners the deposit, they need to push for sales receipt along with cust dep item service. While creating the invoice for deposit, user is required to provide following details:

  • Items, charge is being set for
  • Cust dep item
  • Quantity to be set at negative
  • Total amount provided under deposit.

Invoice will be made for the left out balance that the customer needs to pay for.

This should clear up the issue of Security Deposit recording under QuickBooks software. In the situation user still faces the same problems; it is recommended to approach the experts via QuickBooks tech support number who are extremely knowledgeable regarding all things QuickBooks set up by Intuit. Moreover, if there is any issue in connecting with the team of QuickBooks for the same user can connect with us at our toll free number +18554815335 and live chat option on our website – http://quickbooksnumber.support/.

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