Income Digs
"Income Diggs" is a podcast focusing on the use of technology to help real estate investors and bookkeepers expand and streamline their operations. The show provides insights into technological solutions for the real estate market.
Real Estate Accounting- Record Security Deposits
In this episode, Nick Baldo explores the complexities of handling security deposits in real estate accounting. He discusses recording purchases, tracking changes, handling non-returnable deposits, and managing interest. He also gives insights on QuickBooks use for these transactions and promotes the QBO mini camp course.
Key Points
- Security deposits should be recorded as a liability in QuickBooks Online, and when receiving a security deposit, it is critical to create a liability account specifically for those funds.
- If required by jurisdiction, security deposits must be held in a separate interest-bearing account, and any interest accrued should be tracked and credited to the tenant, necessitating a sub-account for tracking interest on security deposits.
- When a tenant vacates, the security deposit must be fully accounted for by either returning the full amount or recording any withholdings for damages as income, ensuring the tenant's balance is zeroed out.
Real Estate Accounting: https://www.youtube.com/playlist?list=PL89qBCL2vU2sab5dEzpwJTZi0zTLjCDXJ End-to-End Accounting Course: https://www.incomedigs.com/reab (Enter Code YOUTUBE50 for $50 off!) Free QBO MiniCamp: https://bit.ly/3uNlesQ Free Download: https://www.incomedigs.com/chart-of-accounts Official Website: http://www.incomedigs.com
Properly track your tenants' security deposits in QB Online
Chapters
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Transcript
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