now we will learn all about security deposits in quickbooks online if you have any questions about
this topic you can leave them in the comments section below and i'll do my best to help you and
of course if you feel the video helped you i hope you will click like and don't forget to subscribe
to get updates on new videos that come out all the time there are two choices for managing
attendance security deposits in quickbooks online you could just make it part of the normal balance
and honestly most people do it this way okay you don't need to separate the security deposit if you
don't have to but just be aware that the balance of the tenant includes the security deposit and
you would see that amount on the tenant related reports that we have already worked with
however some people are required to track the deposits separately in that case we have
to make an account in the chart of accounts specifically to track tenant security deposit
this will not affect the tenant's balance on the tenant specific reports so you have to keep that
in mind if you're tracking the deposits separately we could modify the account report to see the
tenant specific deposits or more clearly which tenant gave what money towards the deposit account
and of course when we go to record an actual deposit we would use the deposits window not the
payments window first we have to put an account in the chart of accounts called security deposits
payable that's because the security deposit is a liability so let's go ahead and do that accounting
chart of accounts here we are then we click new and the type of account is other
current liability other current liability it's a current liability because at any given moment
you may have to give back some of it to a tenant who's moving out
now what's the detail type as i mentioned before it doesn't really matter but just choose
other current liability and the name and capital should be security
deposits
payable security deposits payable save and close and that's the account where is it here it is
that's the account that we will use when we physically receive money that is supposed
to be set aside for security deposit if you track security deposits separately
you have to ask your tenant to give you two separate checks or two separate credit card
swipes one for the first month's rent and the other one specifically for the security deposit
the rent check you record normally and the check for the deposit you would record
in the deposits window so for example april 1 gary greenstein who's already on the tenant list moves
into apartment 7g his monthly rent is 800 dollars so he gave you two checks on april 1. check
1983 for 800 was specifically for the deposit and then the other check was for april's rent
so let's go ahead and enter the deposit check first in the deposits window
you click the plus sign and you come where it says other which is the column all the way to
the right and you click bank deposit now the date that he's putting the money or the date that
he's giving you the check is april one and you received it from gary greenstein gary greenstein
and the account is the security deposits payable the account that you put for the depart
we know the bank account is where the money's going into and this is where the money's coming
from it's coming from security deposit payable and the reference number is the check number 1983
so he gave us check number 1983 for 800 dollars specifically for the security deposit
now when we click save and close you can click reports trial balance and you can see security
deposits payable shows up for the first time as eight hundred dollars what you will not see is
this 800 and gary's balance report tenant balance detail gary greenstein still not even on the list
because we did not yet record normal rent now we'll record check 1984 for april's rent so
we have gary greenstein we're going to click here and click receive payment still april 1
still gary greenstein uh okay now he doesn't even don't worry about this warning
okay reference number the check number is 1984 and the payment method of course was a check and this
was a separate check for the uh april rent so we click we put the payment amount amount received is
up here in the right you see it you put 800 and you push tab so for check 1984
for this 800 this will change his rent balance save and close and now when we come here
we see that uh well we'll have to refresh we have to click reports and we'll have to click
tenant balance detail and you can see that gary greenstein is down here now in apartment 7g and
it only shows 800 in his balance because the other 800 is in the security deposits payable
now this example has an additional step for people who are in this situation let's imagine on april
1 harry houdini who is already on the tenant list moves into apartment 8 h his monthly rent is 900
but in this case he gave you one check on april 1. check number six six one one for eighteen
hundred dollars and this was supposed to cover the security deposit and the april rent well
if he gives you one check but you have to track the deposit separately here's what you have to
do you have to enter the same check twice and again that's only if the tenant won't cooperate
and give you two separate checks in a situation where you have to track the security deposit
separate so first we have to enter the deposit click the plus sign and on the right where it says
other the top choice is bank deposit and of course this is received from this was from harry houdini
and of course the date was april 1 and the account is security deposits payable
and the payment method was check and the reference number was 6611. now even though the amount of the
check was 1800 we're only going to put 900 here watch it'll all work out and then of course you
could type in the description that this is only part of a check that was entered twice where both
of them add up to the total save and close and now the very same way you previously recorded payments
you choose harry houdini and you're still go up don't worry about this you're still going to say
payment method is check and the same check number and that's how we know it's the same transaction
when we get the bank statement the amount is just the amount of the rent so we're receiving from
harry houdini 900 in normal rent with this check number and that check number also got another 900
for the deposit and then when we click save and close take a look harry houdini is now on the rent
report for a rent balance of 900 not the entire 1800 just the amount that's owed in rent but if
you click reports and you click trial balance you can see that security deposits payable has
increased to seventeen hundred dollars and if you want to know whose security deposits are those
you would click the seventeen hundred dollars and you would see even if especially if you could make
this column wider you could see that this 800 was from gary greenstein and we still owe that back
to him on the day that he moves out and this 900 is harry houdini's deposit and we owe that back
to him on the day that he moves out and of course if you click uh if you click reports trial balance
cash and bank and you click the cash and bank number you can scroll to the bottom and see
that these both this payment of 611 as well as
this uh here even though the deposit it doesn't show
you can see they're both from harry houdini and they're both 900 so when you get your
bank statement you'll match both of these up with the one check that clears the bank you