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R. Klein, EA
R. Klein, EA, Accountant
Category: Financial Software
Satisfied Customers: 3375
Experience:  A member of the Intuit Ask a Tax Expert team and 10 years as QuickBooks Certified Pro Advisor.
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Hi there: Im actually not an accountant, but I am the

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Hi there:

I'm actually not an accountant, but I am the treasurer for my condo assn.
We are only 3 units, self managed and we operate very close to the bone.

I am using Quick Books and am confused about how to classify a deposit to our checking account that came from our reserve account to pay for larger expenses like concrete or roofing.

Obviously, the wrong tax classification on the deposit will affect the retained earnings on the balance sheet.

Thanks for your help.
Gayle Weiss

R. Klein, EA :

Thank you for your accounting question,

R. Klein, EA :

Money deposited from your reserve account should simply use the category of the reserve account. You increase your bank deposit and decrease the reserve account. This is simply an asset moving from one account to another. It is not an expense and does not affect P&L


So, how do I link the two accts in QB so that a deposit to one, debits the other without changing the botXXXXX XXXXXne?

R. Klein, EA :

I am assuming you have at least 2 accounts in Quickbooks, 1- your main checking account, and 2-either a checking or savings account for the reserves. You simply make a deposit in the checking account and use the other account as the category.

R. Klein, EA :

Is there some part of the explanation that was not clear?

R. Klein, EA :

The expense of the purchase of materials or services is categorized when you write the check from the main checking account.

R. Klein, EA : the vendor.


Thanks, XXXXX XXXXX didn't appear when I checked before....the box was blank. This clears it up.

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