A Clearing Account is an account that you use to move money from one account to another account when you cannot move the money directly. This account normally has a balance of $0.00 because you always take out the same amount that you put in. It may also be called a Barter or Wash Account.
You need clearing accounts in QuickBooks because the program will not let you record transactions that contain:
The following are the common uses for a clearing account. If you have multiple uses for the account, you may want to create one for each.
To set up a clearing account:
When using a clearing account, you will typically follow this process: