How do I set up the accounts for our property management company in QuickBooks

QuickBooks Help QuestionsHow do I set up the accounts for our property management company in QuickBooks
David R. asked 3 years ago

How do I set up the accounts for our property management company in QuickBooks? I like to manage the accounts for banking, trust security deposits and holding landlord rents and also run reports correctly.

admin Staff replied 3 years ago

In general, you will have three bank accounts to handle various types of accounting transactions.
1. Clients trust account to hold rents
2. Clients trust account to handle security deposits
3. Regular checking account to handle operating expenses

First, in QuickBooks, you would create two service items (products/services list) to handle tenant invoice transactions
1. Rent Service item for income field is linked to landlord liability account.
2. Tenant security-deposit service item for income field is linked to tenant liability account

In QuickBooks, to handle tenant invoicing:
Create an Invoice. Enter a tenant name on an Invoice to rent, use rent service item which is linked to landlord liability account. For security-deposits, use tenant security-deposit service item.

When you write a check to the landlord, list all the rent items from tenants.

Make sure to reconcile the tenant liability account balance. This account should always match the bank balance for the security deposits.



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