My new client is using QB Desktop - Contractors Edition and does Residential Construction and WIP accounts.

I have the expense side of the bookkeeping process down, but am unsure of the income side.

 

the owner of the property being developed sends a check to my client which gets deposited into his bank account.  My client then writes a check for the same exact amount to the Title Company which then takes the funds and pays the subcontractors.

 

Do i need a liability account to track these payments from the owner to my client?

 

Thanks!