Clearing account is an account that you use to move money from one account to another account, when you cannot move the money directly. This account normally has balance of $0.00 as you always take out the same amount that you put in. This is also called as a barter or wash account.
To know the process to set up a clearing account in QuickBooks desktop, make sure to read this post carefully till the end. Or call us at 1-844-405-0906, and we will provide you with immediate support services.
Steps to set up clearing account in QuickBooks
For setting up clearing account, you can perform the steps below:
- The very first step is to select the chart of accounts from the lists menu
- And right click anywhere in the chart of accounts and choose new tab
- Now, in the add new account window, select the bank radio tab
- Also note that when you choose from several types of accounts, the best is a bank account because of the following reasons:
- You can pay into a bank account using receive payments or make deposits
- You can pay out of a bank account
- To allocate expenses to overhead or class using a zero check, you must use a bank account as your clearing account
- Choose continue tab
- In the account name field enter clearing account, barter account or wash account
- Enter an opening balance
- Choose save and close.
Steps to use clearing account
- Firstly, create a journal entry
- Add the AR or AP from which you are moving money
- Add the clearing account
- Save the journal entry
- Create a second journal entry
- Add the AR or ap account
- Link the journal entries together
By now you might be able to set up a clearing account in QuickBooks desktop successfully. However, if you still have any query or in case you are unable to set up the clearing account in QuickBooks desktop even after that, then make sure to reach out to us at our QuickBooks premier support number i.e.,+1-844-405-0906. And we will provide you with instant support services.
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