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Best way to handle: Collecting fees on behalf of a sports association and then pay that association the collected fees later in the year.
I'm looking for an easy way to handle the collection and payment of Association fees. Would it be better for me to run all these amounts through one category recording the collection and then payment...
Hi Ferraloro ,
Thanks for your post. In this scenario, we recommend consulting an accountant for an accurate solution. Generally, bill payments and invoice collections should be separated. To give you an idea, you can create a Clearing Account by setting up a liability account called "Association Fees Clearing Account." When collecting fees from members, record the transaction by crediting the "Association Fees Clearing Account" and debiting your bank account.
Feel free to post again, we're happy to help!
Regards,
Earl
