Rental income for Reckon Account hosted

TrevorEIT
TrevorEIT Member Posts: 1 Novice Member Novice Member

Hi,

I'm having trouble for put my investment property rental income into my Reckon account hosted system.

we having 4 properties for rental ATM, and the income including the agent management fees.

how could I put it in rightly please? like below, the $26.39 expenses is the agent fee


also, with the rental income, do we need to make invoice for it and receive the payment for it? or what is the correct way to do it please?


thanks a lot

Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,754 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert
    edited April 2023

    Hi Treveor

    For this, you need to use a Clearing account (called "Rent Disb Acct" or similar) This is a dummy bank-type account that you create to receive funds into & pay funds out of & enables correct tracking of income & expenses.

    If you have multiple properties, you may want to create one for each, particularly if there's more than one real estate.

    If you've not already done so, create relevant Income & Expense-type accounts (or Other Income/Other Expense-type, if the property is personally held/not owned by the business) in your Chart of Accounts for the various components eg

    Inv Prop 1

    Income

    • Rent
    • Reimb Outgoings

    Expenses

    • Management Fees
    • Postage & Petties
    • Strata Fees
    • Rep & Maint etc

    Create specific Item(s) as applicable for the specific income components & link these to the relevant accounts.

    Create the Real Estate as a Customer with "(c)" at the end to identify this

    Create the Real Estate as a Supplier with "(s)" at the end to differentiate

    Create an Other-type Name for "Net Rent Dep" (or similar)

    You would then create a Sales Receipt - under the real estate customer - for the income entries using the applicable Items & selecting your clearing account to Deposit to at the bottom.

    Next, you create Write Chq entries - to the real estate supplier - OUT of this same clearing bank account for the various expenditures.

    When you have a look at your clearing bank account now, you should see the balance now matches the net deposit you received so you simply transfer this from the clearing account to your main bank account as per your bank transactions. (Some use Transfer Funds but I prefer to use Write Chq as it allows for more detail):


    IMPORTANT POINTS TO REMEMBER:

    1. The clearing account should always come back to $ 0.00 (or however much the real estate is holding)
    2. Residential income & expenses do NOT attract GST. Instead, they are input-taxed. Use the real estate monthly statements to record the breakdowns correctly:
    • If the property is personal, your Sales Receipt income & Chq expense lines should have NO tax code (eg leave this blank)
    • If the property is residential, but business-related, use INP on income & NCF on expenses
    • If the property is commercial & business-related, use GST on income & NCF/NCG (as applicable) on expenses

    TIP: Once you've entered the above, create a Memorised Report Group (or one for each property) & Memorise the Sales Rcpt income entry, Chq expense entry & net deposit Chq. You can then enter them easily each month & just edit accordingly 😊

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)