Record a loan escrow expense
Record bills paid from lender escrow separately from principal and escrow funding.
On this page
Have the lender statement showing the amount and date paid to the tax authority or insurer.
Check the mortgage payment
Review its principal, interest and escrow components. Principal reduces debt; funding escrow is money held for future bills.
Start the disbursement entry
In Add transaction choose Escrow expense. Use the actual disbursement date, property and a description tied to the lender statement.
Review the balanced lines
With your bookkeeper, select the expense account and corresponding lender escrow account. Check the amounts before Submit for review.
Approve and compare
Inspect the saved journal before approving. Compare the escrow balance and expense report for the same period.
Check the result
- The posted expense matches the lender disbursement and the intended escrow account.
FAQs
Why are principal and escrow funding absent from net income?
They change debt or an asset balance. The later lender disbursement and the interest component are separate from those balance movements.
Is this for tenant security deposits?
No. Tenant funds use the dedicated lease and deposit workflows. This guide concerns property bills paid by a lender.