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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