From the course: QuickBooks Online Tips and Tricks
Join today to access over 22,600 courses taught by industry experts or purchase this course individually.
Record retainers and deposits
From the course: QuickBooks Online Tips and Tricks
Record retainers and deposits
- [Instructor] Retainers and deposits represent prepayments that customers make. Because you haven't earned the money yet, you need to track it a little differently than income. We need a liability account because the company hasn't earned money from the customer yet, they've prepaid something. So we're going to head to the navigation bar, point at Accounting and then choose Chart of Accounts. Up at the top right of the chart of account screen, click New. The account type is going to be other current liabilities and that actually is also the detailed type. I'm going to call it retainers but you can call it whatever you want, like prepayments, then click Save and close. We also need a service for the retainer or prepayment. I'm going to head up to the top right, click the settings gear and choose Products and services. On that screen, at the top right click New and choose Service. I'm going to call the service retainer…
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.