Chapter 5: Handling Client Money
Some businesses will need to handle money that is not theirs. This is usually referred to as Client Money. Lawyers, Realtors, Investment Brokers, and other businesses that act as agents might need to handle funds on behalf of others.
This chapter is all about how QuickBooks Online can be used effectively to monitor funds held by a business that belong to other parties – usually clients.
Understanding how to fully separate standard business activities from those where receipts and payments are being made on behalf of others is important. Handling client funds often requires the need to comply with strict regulations.
There should never be any confusion between funds owed to clients and funds that belong to the business. Setting up QuickBooks correctly will help to avoid making unnecessary mistakes.
Throughout this chapter, you will learn how to do the following:
- Set up QuickBooks to account for Client Funds
- Record entries...
