Sunday, July 17, 2016

Property Management Bookkeeping: How to Easily Set Up Property Owners in QuickBooks Online



How to Easily Set Up Property Owners in QuickBooks Online

As a property management company, your main customer is the property owner. Your company provides the property owner with management services so that they can relax knowing that their properties are safe.

The property owner is also your main vendor. Once you have accounted for the income and expenses for a property, you send the net income to the property owner (if there is net income and after taking out your management fees, of course).

Here, we will look at how to set up the property owner in QuickBooks Online as both a Customer and a Vendor. We will also look at how to categorize the property owner in QuickBooks Online as a Class to make recording of income and expenses easier.

Property Owner as a Customer in QuickBooks Online

In QuickBooks Online, click Customers on the left hand toolbar. Click the New Customer button in the top right corner of the Customers page and enter in the property owner information. Notice how you can select the Print Check As radio button to select the property owner’s name on any printed checks or you can change it as you see fit.  Save the new customer information.

Property Owner as a Vendor in QuickBooks Online

Click the Vendors tab on the left hand toolbar and then the New Vendor button in the top right corner of the new page. Enter the property owner’s contact information. Remember, QuickBooks Online will not let a Customer and a Vendor have the same name. Add something to distinguish the two, like “John Doe – Owner.” Click Save.

Property Owner as a Class in QuickBooks Online

To create a Class for the property owner, you first have to set QuickBooks Online to track classes. Click the Gear icon next to your company name in the top right corner of the page. Select Accounts and Settings under the Your Company heading. When the new page opens, select the Advanced tab on the left hand tool bar. Click on the Categories row and check the Track Classes box. You are now ready to create new classes.

Return to the Gear icon and select All Lists under the Lists heading. On the new page, select Classes (this will not appear if you did not set QuickBooks Online to track classes). Click New button and enter the property owner’s name. Click Save.

Conclusion

Now that you have set up the property owner as a Customer, Vendor, and Class, you are ready to do business. You will be able to set expenses to the owner’s property and charge the owner as a Customer. As a Vendor, you can issue payments to the property owner once you have covered the expenses with rental income. Finally, you can track the income and expenses of each property using the property owner’s Class designation. This will make reporting for each owner and property very easy to understand.

Want some help with your property management bookkeeping using QuickBooks, contact Equitable Bookkeeping today for a free quote.

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