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.

How to Setup Mortgage Escrow in Quickbooks Online

Sep 29, 2023 • 21 mins

In this episode, Nick Baldo provides a comprehensive guide to understanding and managing escrow accounts in real estate investment. He details the use of QuickBooks Online, breaks down origination fees, closing costs, and escrow, and shares tips on tracking payments and loan balances. Nick also warns listeners about common escrow mistakes and demonstrates how to correct them, as well as how to pay property taxes and record transactions efficiently. He discusses the importance of tracking escrow for an accurate balance sheet and introduces the Real Estate Accounting Boot Camp 3.0.

Key Points

Managing escrow accounts in QuickBooks Online involves recording and tracking all the money going in and out of the account to ensure it matches the mortgage statements and reflects accurately on the balance sheet.
To handle escrow transactions correctly, it's crucial to separate the payments into interest, principal, and escrow, and not to prematurely categorize escrow payments as expenses for taxes or insurance until they are actually disbursed.
Utilizing a virtual assistant to manage the repetitive task of updating escrow transactions can be efficient, provided they are properly trained and their work is checked for accuracy against the escrow balance statements.

End to End RE Accounting Training: https://www.incomedigs.com/reab (Code YOUTUBE50) Free QBO MiniCamp: https://bit.ly/3uNlesQ Download the FREE Ultimate Chart of Accounts: https://www.incomedigs.com/chart-of-accounts

Many mortgages require that you pay a monthly amount toward Tax & Insurance every month. Check out this super simple method for recording these escrow payments as well as the payments coming out of the escrow account

How to Purchase a Property with cash: https://www.youtube.com/watch?v=mA5CJH8tRbE How to Purchase a Property with Financing: https://www.youtube.com/watch?v=8C1LQciF77Q

Speakers

Nick Baldo

Host • 100%

Chapters

0:00	Introduction to QuickBooks online, Real Estate Accounting Boot Camp, and escrow accounts
3:24	Detailed breakdown of origination fee, closing costs, and escrow
5:16	Guidance on dealing with monthly statements and tracking payments
8:10	Checking loan balance, tax, and insurance escrow
11:59	Common mistakes with escrow account and how to correct them
14:19	Procedure for paying property taxes and recording transactions
16:05	Accounting for interest on escrow and making journal entries
17:13	Adjusting amounts, saving transactions, and copying for different months
18:03	Checking escrow balances, assigning tasks to a VA, and monitoring changes
19:34	Importance of tracking escrow for accurate balance sheet and checking net income
20:11	Introduction to Real Estate Accounting Boot Camp 3.0

Transcript

Loading transcript...

- / -