Enter First and Last Month’s Rent Deposit in QuickBooks

September 29, 2023

Are you wondering how to properly enter deposits in QuickBooks? Here are step by step instructions for how to best enter first and last month’s rent deposits. You’ll get accurate reports every time if you follow this procedure.

Q: The tenant has given me a deposit check for the first and last month’s rent. How can I record the deposit without creating a false invoice, as I may have to return funds?

A: Here is what you do for accurate reporting:

Create two items and accounts: rent (service item) linked to a Income account and last month rent, linked it to an Liability account.
Create two Invoices for each item
Receive Payment
Create an invoice for last month’s rent

If you have any questions, do not hesitate to contact us by commenting below or sending an email.

Gita Faust

About the Author

Gita Faust has over 30 years of accounting experience in the real estate and property management industry, Gita Faust is more than just a real estate investor; she is also popular for her work as an accountant, consultant, mentor, speaker, QuickBooks Top ProAdvisor, QuickBooks Solution Provider, member of Intuit’s Trainer/Writer Network, and, of course, author. Gita is well-known for her exemplary leadership and advisory skills. In fact, she even helped pioneer the adaptation of QuickBooks to suit the needs of professionals in real estate and property management. To share her knowledge she has written a series of courses titled Simplified Accounting Solution, which provides step-by-step guidance for those working with QuickBooks.

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