Allocating unknown deposits

Hi Mathilda 

Thanks for your post. Suspense accounts are generally set up as liability accounts but can also be set up as asset accounts. When it comes to choosing credit card as the Account Type, this is only so that you can select that account as a Paid from/Deposit to account and so that it can be reconciled back to zero. Selecting credit card won't affect your financial reports in any way.

The important thing to remember is that the suspense is a temporary account, amounts are only posted there until you find the correct transaction or account to allocate to. So if you only use the suspense account a couple of times a year it's perfectly fine to set it up as a liability account. Ideally you would have moved the payment to the correct customer before lodging your next BAS so that the income is included in that quarter.

If you're not sure or have concerns I would recommend checking with your accountant to ensure it is set up correctly for your business.

Please let me know if you need further help.

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