Experienced Member

Setting up for Success With QuickBooks Online

I currently rent space for my business and pay a landlord for this space.  I am now going to sublease some of the space to another business.  How do I account for this in QB?  I will still pay the landlord the full amount and the subleaser will pay my business for his portion of the rent. How do I set this up and account for the total rent in Quickbooks?

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Re: Setting up for Success With QuickBooks Online

Just like anything else, the rent you pay is an expense, the rent you collect is income, I would create an income account called rental income and post it to that

 

on the P&L income is reduced by expense to get net profit

Experienced Member

Re: Setting up for Success With QuickBooks Online

thank you for your reply. So would it be best to create an invoice in QuickBooks for this additional income even though it will offset my rent?  

 

QuickBooks Team

Re: Setting up for Success With QuickBooks Online

Hi there, @blc.


Thanks for reaching out. Allow me to add to this discussion and help you track the additional income.


Yes, create an invoice to record the transaction. Before doing so, you must first set up a service item using Rental income as the account. Here’s how:

  1. Go to Lists menu and select Item List.
  2. Click the Item drop-down and select New.
  3. Choose Service as the Type.
  4. Fill out other necessary fields.
  5. On the Account drop-down, select the income account you created.
  6. Hit OK.

 

 

 

Once done, track the income in QuickBooks by following the steps below:

  1. Go to the Customers menu and select Create Invoices.
  2. Select a customer for the invoice. 
  3. Fill out other necessary fields.
  4. On the first line item, select the service item you created.
  5. Hit Save & Close.

 

 

If the other business pays you the amount of the rent, apply the payment to the open invoice. Let me show you how:

  1. Go to the Customers menu and select Receive Payment.
  2. Choose the customer’s name on the Received From drop-down.
  3. Enter the Amount.
  4. Make sure the date is correct, then choose the Payment method.
  5. Select the invoice.
  6. Hit Save & Close.

 

 

Here are articles for reference: 

That should answer your concern for today. Let me know if you have any questions, I’m always here to help. Have a good one!

Experienced Member

Re: Setting up for Success With QuickBooks Online

awesome thank you!!!

 

Experienced Member

Re: Setting up for Success With QuickBooks Online

This was so helpful - thanks to both of you!

QuickBooks Team

Re: Setting up for Success With QuickBooks Online

You’re always welcome, @BLC1.


I'm glad I was able to help. Please visit our help website for any concern in the future: QBDT Self-help.


Please know I’m always here to help should you need anything else. Have a great day!