Community Champion

Reports and accounting

Even though you may not receive 100% of the collected rent due to fact property manager is spending it on expenses for you you still must record 100% of the collected rentt as income. Since you are not depositing it all into your real bank account I suggest a clearing bank account. The clearing account is not real but can handle the transactions you need.

 

1. Record all rent through invoice or sales receipt. You can set up recurring invoices to even post early so you can give tenants a monthly statement prior to when rent is due.

2. Deposit all rent into clearing account. Move the actual net received from clearing to real bank account.

3. Record expenses paid by manager as coming from clearing account. The goal, unless pm keeps a reserve is to monthly get the clearing balance to zero.

 

In the world of rentals and tracking in QuickBooks you set up each property as a Customer. Each building is (in online) a customer of a customer (Jobs in desktop) and each unit and then tennat in turn a customer of a customer of a customer. You can nest 5 levels deep.  I also utilize Class Tracking since the reports of P&L by class give me more of what I need (in preparing columns on Schedule E) than P&L by Customer or Job

View solution in original post