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Since the cost of ability to use either Class or Location prohibits Plus version for then what you propose with 3x the accounts is the direction to go but I am going to suggest actually 4 sets of accounts. The income and expense accounts for each property should be z sub account of a master account for each category of income or expense.
You only need Rent for income unless you charge additional fees. And for expenses limit yourself to what is on Schedule E
Thanks John,
I'm kind of a novice bookkeeper so I'm not really sure what you mean by "z sub account of a master account" means.
I'm really on board with the simple "only what is on the Schedule E"!
Schedule E is what is filed for rental properties.
Sub accounts. Example
Rent
Rent:Rent A
Rent:Rent B
Rent:Rent C
You would never post in parent Rent but in each child account. Top parent account is summing account. Same with expense accounts.
Google "IRS rental properties"
It's been a long while since you first asked for advice here. Are you keeping Trust funds separated in the bank and in QBO from the Operating money? How is QBO working for you and how has the rental business grown?
I hope it's going well, is very profitable for you, and you've found simple and efficient ways to manage trust and operating funds.
Also the revenue that you revenue is a trust liability/not income until the reservation is completed. It needs to be held similarly to a Security Deposit. Once the reservation has been completed you can make a journal entry moving funds from the liability account (eg. Rents in Trust) to your Rental income account. That will pay down your liability and increase your income.
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