In this episode, Nick Baldo explores the complexities of handling security deposits in real estate accounting. He discusses recording purchases, tracking changes, handling non-returnable deposits, and managing interest. He also gives insights on QuickBooks use for these transactions and promotes the QBO mini camp course.

End-to-End Accounting Course: https://www.incomedigs.com/reab (Enter Code YOUTUBE50 for $50 off!)

Free QBO MiniCamp: https://bit.ly/3uNlesQ

Free Download: https://www.incomedigs.com/chart-of-accounts

Official Website: http://www.incomedigs.com

(0:00) Introduction to the episode: Demystifying security deposits in real estate accounting

(1:45) Recording security deposits when purchasing a property

(4:11) Setting up a new tenant for tracking security deposits and allocating them

(6:12) Recording additional security deposits for pets and setting up products and services in QuickBooks

(10:34) Tracking changes to security deposits and handling them in separate interest bearing accounts

(13:58) Accounting for interest gained on security deposits and transferring them between accounts

(16:15) Returning the security deposit and reviewing the transaction in QuickBooks

(17:41) Handling damages, non-returnable deposits, and interest owed on security deposits

(18:49) Recording retained deposits as income and final thoughts on tracking and returning security deposits

(20:40) Promotion for QBO mini camp course