And, remember that the clearing account in your bookkeeping is different from the clearing account you may use for payroll. Keep in mind that a clearing account is different from a suspense account, though the two are similar temporary accounts. Do not add the clearing account amounts to your balance sheet. ![]() ![]() Use a clearing account in your general ledger to record the funds temporarily. Generally, you open a clearing account because you cannot classify the funds directly and must wait for more information. Clearing accounts are often called a wash account or cash clearing account.įunds sit in a clearing account for a temporary period until they can be moved where they belong. What is a clearing account?įirst and foremost, what in the world is a clearing account? The clearing account definition is that it’s a temporary account containing costs or amounts to be transferred to another account. What are clearing accounts? Do you need to use them? What do they do? Clear up your schedule for a few minutes to learn all about clearing accounts. But, buckle up because there’s another tool you need to understand: clearing accounts. ![]() If you’re not an accountant, the accounting information you need to know can feel daunting.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |