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Set up Chart of Accounts for Property Management in QuickBooks Online.

I have been online searching both in youtube and here looking for help with qbo for setting up CoA for property management. Its a two fold issue being I am accounting for Owners books & my own PM bus books which go hand in hand, any insight is appreciated

 

 

(Title has been edited by moderator for clarity)

Solved
Best answer 06-09-2018

Accepted Solutions
Established Community Backer ***

Re: QBO and Property Management

@OWood

 

You have two businesses, the owners and your prop management, therefore you should have two QBO subscriptions

 

The only hand in hand thing is that what happens in the prop management business feeds the owner account.

 

as property manager, you invoice the tenant for rent and receive the payment as a liability (you owe the owner)

then as property manager you send a check the owner
line one, the liability account, and the full amount of rent received
line two, your commission income account, and the amount of your fee as a negative number

(and keep in mind the requirement to 1099 the owner at year end for the full amount of the rent collected)

 

then in the owner books
create a sales receipt
line one, rental income service item, full amount of rent
line two, management fee expense item, fee expene amount as a negative number
save

then deposit the funds.

 

IRS Pub 583, Page 5 - must keep separate books per company

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Community Backer ***

Re: QBO and Property Management

I would like to gain a little clarity on what you are trying to do. 

 

You said that you are accounting for "owners" books and your own Property Management books. 

 

Is this for two completely different companies or are they different parts of the same company? 

 

You also said they go hand in hand. In what way do they go hand in hand? 

Established Community Backer ***

Re: QBO and Property Management

@OWood

 

You have two businesses, the owners and your prop management, therefore you should have two QBO subscriptions

 

The only hand in hand thing is that what happens in the prop management business feeds the owner account.

 

as property manager, you invoice the tenant for rent and receive the payment as a liability (you owe the owner)

then as property manager you send a check the owner
line one, the liability account, and the full amount of rent received
line two, your commission income account, and the amount of your fee as a negative number

(and keep in mind the requirement to 1099 the owner at year end for the full amount of the rent collected)

 

then in the owner books
create a sales receipt
line one, rental income service item, full amount of rent
line two, management fee expense item, fee expene amount as a negative number
save

then deposit the funds.

 

IRS Pub 583, Page 5 - must keep separate books per company

Frequent Explorer *

Re: QBO and Property Management

I suggest there is a way to do this in one QBO company.

 

First set up your chart of accounts with two different sections. One for property owners and one for your company. Then add classes for each property and when posting to there accounts use the class for the property. 

 

When posting for your own company use the accounts setup for your company. Don't use the individual property classes. 

 

Reporting will be a challenge, but the eClientLink Custom Report Writer could solve this problem. For more information on eClientLink see the QuickBooks Online App store here > https://appcenter.intuit.com/eclientlink?locale=en-us 

 

Thanks

eClientLink.com

 

 

 

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