Accounting
A suspense account in QuickBooks Online is a temporary holding account that carries all those transactions that can’t be categorized or reconciled instantly. Moreover, this account is prepare to insert the transactions temporarily unless the proper account to which it can be categorized is identified. Usually, the users access these accounts when they don’t have a final account or you are holding on to get more details. Furthermore, read this guide thoroughly to gather the complete details regarding creating a suspense account in QBO.
What Exactly Does a Suspense Account in QuickBooks Mean?
A suspense account in QuickBooks is created to list the transactions which is unfamiliar due to certain purposes. In short, this account carries all those transactions that can’t be categorized immediately because of the missing data. Once you got the proper details regarding the unfamiliar transactions, you can move them from the suspense accounts to their respective accounts.
Here’s How to Locate the Suspense Account in QuickBooks
You must locate the suspense account in the general ledger accounts or the charts of accounts in QuickBooks. However, it totally depends upon the transaction, and thus, it can be classified as an asset or a liability account. For instance, if you pick the account type as expenses, then you will see that the suspense account will be a liability account.
How to Create and Set Up a Suspense Account in QuickBooks Online?
Below, we have provided the complete process to create and set up a suspense account in QuickBooks Online.
a. How to Create a Suspense Account in QuickBooks Online Using Simple Steps?
The QuickBooks Online application usually establishes two default accounts during the setup of VAT or other sales tax accounts: the payable account and the Suspense Account. However, if you feel the need, you can create a suspense account in QuickBooks Online through the Charts of Accounts.
b. Set up a Suspense Account in QuickBooks Online
You must thoroughly review the stepwise instructions outlined below to setup a suspense account in QBO.
- To begin with, launch the QB Online application, move to Accounting, and then opt for the Charts of Accounts tab.
- After that, you must pick the Account Type tab and include a new account with the proper details.
- Following this, head to the Account tab from the list of options and then hit the New button.
- Moving on, you must choose the Account Type Expense and tap on the Continue tab.
- Subsequently, mention the name of your account within the Account Name column.
- If you have, provide the Account Number in the Number column.
- Now ,after making the necessary changes, tap on the Save and then the Close tab.
- Doing so will eventually set up a suspense account in QBO without a hitch.
Instances When You Can Use the QuickBooks Suspense Account
You can use the QuickBooks suspense account when you don’t have any clue regarding the entry you have made or wish to create. Furthermore, there are numerous other instances when you need the suspense account, which are as follows.
- If you are dealing with a situation where you don’t have a clear vision regarding the person who sent you the payment, then you can simply put them into the suspense account.
- Consider another scenario when you identify the issues while matching the balance. At that point, you can create a suspense account in QB to fix the issue.
- If you have obtained half of the payment and wish to show it as one entry after making the complete payment, you can allot it to the suspense account.
- For instance, if you have purchased any fixed asset in installments but haven’t received any amount from it, you must pay the full amount. In that scenario, you can mention that expense in the suspense account.
Is there any Suspense Account List in QuickBooks?
As such there is no Suspense Account List in QuickBooks. But, you can generate a Suspense Account in QB to manage the temporary or unfamiliar entries.
What type of account is a suspense account?
The suspense account is a temporary holding account that carries unclassified or undetermined transactions. It is not a permanent account, and the entries within it will automatically be transfer to the appropriate ledger account.
Conclusion
So, here we conclude this post. We hope that this post will help you create and set up an account in QuickBooks. If you are still having any doubts, you can connect with our QB professionals for immediate help. You can reach out to our professionals by placing a call, and they will assist you in the best possible manner.
