Summary
Throughout this chapter, we have looked at how we can use QuickBooks Online to monitor funds received and paid on behalf of clients. Essentially, it is advised to use a separate QuickBooks subscription for this.
This results in having two QuickBooks subscriptions: one for the business, and another dedicated to handling client funds. The client QuickBooks file is used to do the following:
- Receive money on behalf of clients.
- Make payments on behalf of clients.
- Create adjustments for fees and client disbursements.
A very basic setup is required for the client file.
The office QuickBooks file is used for everything else, such as this:
- Accounting for all income and expenditure of the business
- Accounting for VAT and other taxes
This keeps a clear division between transactions that have an impact on the business and those that relate to clients.
If specialist third-party software is in use, you may only need one QuickBooks file...
