Escrow Accounts

How do I use Escrow accounts?

An Escrow account works the same as a Checking account, but it's not included on the balance sheet.

Use escrow accounts for money that you manage for someone else. For example, you might use an escrow account for any of the following items:

• Rental deposits
• Pension funds
• Withholding or sales taxes
• Project funds that you aren't allowed to use until work has been completed
• Bank accounts that you manage for a third party

You can still enter transactions in an escrow account and reconcile it, just the same as a regular checking account. But Goldenseal accounting software will not consider it to be your money.

NOTE-- If you want to track expenses for someone else, then set up a separate company file for that person or business. In that case, you probably don't need Escrow accounts in your own company file.

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