You can set up or create a company file that allows you to efficiently manage your finances by organizing Customers, Vendors, Classes, Items, Services, and Expenses @ImpactProperties. This setup ensures that all financial activities are tracked precisely, giving you a clear view of your business operations. I can guide you on how.
Step 1: Set up your tenants and Vendors:
- Properties You Manage: Add each property you manage under the Customers section. This allows you to organize income by property.
- Tenants: Set up tenants as Customers under each respective property. This helps in tracking rental income and payments from each tenant.
- Owners of the properties: Since you remit the net income of properties back to the owners, set them up as Vendors.
- Your own property management company: When managing company transactions or service fees, include your company as a Vendor.
Step 2: Set up accounts and items:
Before you start recording transactions, it's essential to establish the necessary accounts and service items in your financial system. Here's how you can set them up:
- Accounts:
- Checking Account (Asset): This account is used to manage the cash flow, including incoming rent payments and outgoing expenses.
- Security Deposits (Liability): Record tenant security deposits here, as these funds are liabilities you hold until the end of a lease.
- Rent Income (Income): This account is for tracking income from rent payments, providing a clear view of your revenue from properties.
- Property Management Expense (Expenses): Use this account to track expenses related to managing properties, such as service fees or administrative costs.
- Property Owner Payment (Expenses): Record the payments made to property owners here, ensuring all outgoing funds are accurately tracked.
- Service Items:
- Tenant Security Deposits: Link this item to the Liability: Security Deposits account to manage each tenant's deposit accurately.
- Rent: Link this item to the Income: Rent Income account to streamline rent payment tracking.
- Property Management Fee: Connect this service item to the Expense: Property Management Expense account to record fees associated with managing properties.
For complete, detailed, and organized steps on how you can set up a company file for a rental property company, click this article on how to record transactions for rental properties you manage and for your own management company in QuickBooks Desktop: Record transactions for a property management company.
Also, I suggest consulting an accountant who knows the ins and outs of short-term rental businesses for more personalized advice.
In the future, consider exploring this article to discover how you can track account balances by department, business office, location, separate properties, or any other meaningful division of your business: Set up and use class tracking in QuickBooks Desktop.
Don't hesitate to drop by our Community anytime you have more inquiries about setting up your company! We're here with solutions.
