A Profitable Venture
Reserve fund accounting for small non-profit condo association I support a lot of NFP and governmental entities for Fund accounting in QB.
Let me try: "Currently have a regular checking account for internet earnings reserve account and one for reserve funds.
Do not know what other accounts to establish. Need help with the following:" "1.
I did that with Transfer funds from regular checking to the reserve savings account. If you are not Assessing them as Restricted, then this is fine. They were regular income for you but the Board has decided to Reserve them. Otherwise, if you Assessed them as Restricted, the Income should also show as Restricted.
Liability would be, for example, a Special Assessment used to repair a Pool that is not considered Income.
Debt Service Reserve Account (DSRA)
When a new condo unit is sold, the new owner pays 2 months of HOA fees to the reserve fund this amount is not refundable and is only paid by new owners This is a Customer Activity. It is Dues Income for you. Perhaps it helps to point out that the Destination Bank is not the same as the Why they are charged and paid.
You assessed them Dues Income but it is going to the Reserve Bank. It still is Income for you and from Dues. If we were to have a special assessment for a major internet earnings reserve account i.
It is generally a deposit which is equal to a given number of months projected debt service obligations. This tutorial explains how to code a transparent and efficient DSRA, and how it is linked to the financial statements without circular references. Key learnings: Modelling DSRA in a project finance model Position of DSRA in the financial statements Download instructions Shortly after you complete the form and click the "send me the workbook" button, you will receive an email containing the link to download the Excel workbook. Commonly the Debt Service Reserve Account target is defined as six or twelve months of debt service.
This would be an Item linked to an account used on the Invoices or sales receipts or as Statement Charges, for those Owners as Customer Names. This might be Restricted Income, or Liability.
2020 Reserve Account Management Session
If it is not refundable let's pretend the project falls through then it is Income. I have never worked with a reserve account and do not know the journal entries for it.
That is not how to correctly use QB at all. You hardly ever use JE for this operation. You need Names on transactions. Internet earnings reserve account you got funds from an entity for some specific purposes say, underground storage tank removal or carried forward funds that are Reserves, such as special assessments, then Maybe.
We don't know if it s a or H, for instance.