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Join nowI run a short term rental property. We have direct booking I keep track of. When a person books (example: 8/10/2021) for a future reservation, not in the current year (example: 7/4/2022), how do you create a transaction that allows you to count the income at the time of the reservation? If I create and invoice and date it for the date of reservation, I cannot conveniently keep track of when partial payments are due (example: 1/2 due 15 days from BOOKING, 1/2 due 60 days prior to RESERVATION). Really struggling with this. Thank you in advance.
Hello there, @lmbart. I can share some information on how to record short term rental property transactions.
You can create an invoice and date it to this year (08/10/2021). It will count the reservation as an income when you're currently using an accrual accounting method.
But before you can invoice the persons who will rent the property and before you can accept upfront deposits or reservations, make sure to create a liability account since it doesn't belong to the business until it's used to pay for services. When you invoice the person and receive payment against it, this will turn the liability into an income.
Here's how to create a liability account:
Once done, you need to create an item to use when recording upfront deposits or retainers. You're linking this item to the liability account you just set up to record upfront deposits accurately.
Follow these steps to create an item:
Then follow the directions from steps 3 to 5 through this article: Manage upfront deposits or retainers. It will take you the step that will allow you to invoice and count the income at the time of the reservation.
For more detailed instructions on how to record rent income in QuickBooks, please click this article: Record transactions for a property management company. This includes how to create a separate company file for rental property and property management.
Should you need further assistance in managing your client's rental properties, please let me know here in the Community. I'm always here to help. Take care!
Is there a method for cash basis?
I’m glad to assist you on how to manage rental transactions on a cash basis, @lmbart.
Instead of creating an invoice transaction, you can enter a sales receipt or make a deposit in QuickBooks Desktop (QBDT). This way, the amounts will count as income at the time of the reservation.
Here’s how:
You can also reach out to your accountant. They can provide additional information to keep your records intact and accurate.
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We'll be right here if you need more assistance with this. Have a great day!
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