Setting up QuickBooks for Client Funds
It is highly recommended that if a business needs to monitor client funds, they use two separate QuickBooks Online files. One file would be used for the business, for office transactions. This is the file that is used to create invoices, pay employees, and record expenses – where the profit and loss for the business is reported.
A separate QuickBooks subscription should be used for the handling of client funds. Although, using options such as Classes and Locations, it is technically possible to use one QuickBooks Company file, it is not recommended.
These are the benefits of keeping the client funds area separate by using a separate QuickBooks Online company file:
- Users can be granted access to the Client QuickBooks only, restricting any visibility to the movements in the Office file.
- Reconciliation of the client funds will be made very much easier.
- Mistaking client funds for income or expenditure of the business is...
