Record escrow in QuickBooks

escrow in QuickBooks

Are you wondering how to add an escrow in QuickBooks amount into QuickBooks properly? You are on the right track, as it does need to be entered separately from the principal and interest amounts. We can help!

Q: How do I add an escrow amount?

A: Escrow is a trust account held either by the loan company or a third party to pay for obligations of the borrower such as property tax or insurance premiums. It is important to remember that payments need to be kept separate from payments for the principal or interest of a loan because escrow payments are usually applied to something else, like the previously mentioned property tax.

Here is what to do to track escrow separately. Create another Asset Account and name it Escrow. Each time you make an escrow in QuickBooks payment, enter the amount into this account.

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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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