Set Up A Clearing Account
QuickBooks is the fast-growing online software that makes your business accounting faster. It is very easy to set up a clearing and handle your all business accounting at any time anywhere.
A clearing account is basically used to transfer the money from one account to another account when you are not able to transfer the money directly. This clearing account is also-known-as a barter or washes account. These are some common ways which prefer for a clearing account when you have multiple users for the account and you want to make one for each:
Managing all Customers and AR
- It is easy to handle all accrual basis bad debts and move towards from credit memo one job to another under the same customer.
- Transfer money from one AR account to another and assign the above expenses to customers by using a zero check.
- Save one check as a recorded file that pays invoices to two customers.
Managing all vendors and AP
- When you move from one AP account to another, save a refund check from the vendor.
- Move a bill or bill credit from one vendor to another vendor.
- Without converting, you can transfer your current country currencies into home currency.
- Save all barter transactions who are a customer or vendor of a company.
To set up clearing accounts, you must follow these steps:
- Go to the lists menu, choose the chart of accountants.
- Then, click on the chart of accountants and click on New account.
- In the open window, go with the BANK radio icon.
- After that, click on continue and go through the open account name field window, enter the clearing account.
- After that, click on save & close, do not enter an opening balance.
How to use a clearing account?
- Make a journal entry.
- You need to add AR or AP when you transferring money from one account to another.
- After that, add the clearing accounts and make a second journal entry.
- Again, create a second journal entry and add clearing accounts.
- In addition to AR or AP accounts for moving money from one account to another.
- Link with journal entries together to pay bills or receive payments.
If you still face any issue or any query in your mind, you can directly with our QuickBooks Customer Support team via helpline number +1800-796-0471 or send an email at our official website email@example.com. For instant solutions, you can also chat with us via LIVE CHAT, the button is given at the right corner of our official website.