QuickBooks has some great features that make it the most suitable accounting software for small and mid-sized businesses. Clearing account set up in QuickBooks is one of such features.
The Clearing Account helps you transfer money from one account to another when you cannot move the money. This account is also called as Barter or Wash Account. You can take the entire balance out of the account and this can maintain the 0$ balance. If you are looking for instructions to set up a Clearing Account in QuickBooks, you are on the right page. We will help you with all the steps to do so. You also have an option to get in touch with the Intuit certified QuickBooks ProAdvisors +1800-366-1468 of proaccountingadvisors.
How To Setup Cleating Account In QB?
Please follow the given steps to create a Clearing Account. If you have to use Clearing Account for multiple purposes, ensure to create multiple Clearing Accounts for every purpose.
Control Customers And AR
- Control Accrual Basis Bad Debt.
- Go to Credit Memo from a job to another job in the same Customer tab.
- Transfer the amount from A/R Account to another.
- Use Zero Check to dispense overhead expenses to the customers or classes.
- Track one check that pays invoices to two customers.
Control Vendors And AP
- Transfer the money from one AP account to another AP account.
- You have an option for a refund check from a vendor of another’s behalf.
- You also have an option to dispense a bill or bill credit from a vendor to another.
- Move foreign currencies without the necessity to convert in home currency.
- Move to the Charts Accounts Windows and tap On.
- Select the Bank tab and go to Add New Account.
- You can pay directly to the bank account using Receive Payments or Make Deposits.
- You can pay directly pay to the bank account through Write Checks or Pay Bills.
- The bank account is displayed on the balance sheet and cash flow statements to balances and modifications through balances.
- To dispense amounts to customers or class using Zero Check, ensure to use the bank account as Clearing Account.
- Tap Continue tab.
- Insert the Clearing Account, Barter Account or Wash Account under the Account Name.
- Never insert the opening balance.
- Hit Save & Close.
How To Use A Clearing Account?
- Make a journal entry and add AR or AP account you wish to transfer the money to.
- Add Clearing Account and Save journal entry.
- Make one more journal entry and add the clearing account.
- Add AR or AP account where you wish to transfer the money.
- Connect the journal entries in Pay Bills and Receive Payments.
Get In Touch With QuickBooks Experts
This article will guide you to set up a new Clearing Account in QuickBooks. Even though this is not a complex process, some newbies might find it difficult to set up a Clearing Account. For this, you can get in touch with the certified QuickBooks Experts. Scroll to the right side of this window and click on the Contact Us button and enter your details in the respective fields. We will get back to you as soon as possible.