In QuickBooks Online, the main purpose of creating a suspense account is to document unfamiliar transactions or entries. This is usually a temporary account that helps to store the transactions until the correct accounts are identified. The suspense account entries will be immediately moved to the designated accounts as soon as the account is identified. Consequently, it guarantees that your accounts are balanced and that you won’t encounter any problems with the books of accounts. In this write-up, we have covered the stepwise instructions to create a suspense account list in QuickBooks Online.
Where can you Locate the Suspense Account in QuickBooks?
To get the Suspense Account in QuickBooks, you must first get it within the general ledger accounts or the chart of accounts. However, it completely depends upon the transaction, and then it can be categorized as an asset or a liability account. For instance, if you select the account type as expenses, you will notice that the suspense account is classified as a liability account.
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Understanding How to Create & Setup Suspense Account List in QuickBooks
If you are searching for the complete instructions to create & set up a suspense account list in QuickBooks, then have a look at the procedure given below.
A. Here’s How to Create a Suspense Account in QuickBooks In a Right Way
The QBO application usually prepares two different default accounts at the time of VAT setup or other sales tax accounts. The first one is the payable account, and the other is the Suspense account. However, you can also create a suspense account in QuickBooks Online with the help of Charts of Accounts.
B. Set Up a Suspense Account in the QuickBooks Online application
With the help of the instructions below, you can easily set up a suspense account using the QuickBooks Online application.
- Commence the procedure by opening the QuickBooks Online application.
- After this, choose the Charts of Accounts and then hit the Account Type option.
- Now, all you require is to provide a new account using accurate information.
- Moving onwards, switch to the Account tab from the available list of options and then opt for the New tab.
- Following this, head to the Account Type Expense option and choose the Continue option.
- Now, you have to provide your account name in the Account Name column.
- If you have chosen the Suspense Account type, then add the Account Number into the Number column.
- Next, if you are done making the mandatory changes, choose Save and then Close.
- With this, you have set up a suspense account in QuickBooks Online without any further discrepancies.
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What type of account is a suspense account?
The Suspense account is basically a temporary holding account that is usually created to transfer transactions that are unfamiliar or not assigned to any other account. Moreover, it is not a permanent account, and once the account is identified, it will be transferred to its assigned ledger account.
Does QuickBooks have any Suspense Account List?
No, QuickBooks doesn’t have any Suspense Account List. However, you have the option to create a Suspense Account in the QuickBooks Online application to take care of unfamiliar transactions.
Taking Everything Into Consideration!!
Hopefully, you will find this post worth reading, as it will help you create a Suspense account in QuickBooks Online. If you are still having trouble creating or setting up the suspense account, you don’t have to worry anymore. Our QB professionals are just a Call Us : +1-866-500-0076 away, always ready to assist you with the best possible assistance.
Frequently Asked Questions
The following are the instances when you must create a suspense account in QuickBooks Online.
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If you receive half payment and want to show it as a single entry after making the complete payment, you can record it in the suspense account.
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For instance, if you have bought the fixed asset in installments but have not received any payments, you must pay the full amount. Afterwards, you can include that expense within the suspense account.
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Imagine a situation where you determine the issues at the time of tallying the account, and then you can use the suspense account.
Before preparing a suspense account in QuickBooks Online, it is essential to check the account on a daily basis. Otherwise, a large number of transactions are recorded in the suspense account, and it becomes difficult to sort them into a correct general ledger account.
Yes, you can edit a suspense account in QuickBooks from the charts of accounts. But, while clearing your suspense account, all you require is to transfer the transaction to the appropriate account.
The suspense account can either contain a debit or a credit balance depending on the trial balance, which is running short. For instance, if the credits in the trial balance exceed the debit, you have to mention the difference as a debit and vice versa.
The P& L Suspense account classifies items into the expense or income column. The item will be transferred to a temporary account as a suspense account if you have any difficulty identifying the accounts.