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Olga2020
January 20, 2021
Question

account receivable; rent to buy

  • January 20, 2021
  • 1 reply
  • 0 views

Hi community,

 

We are setting up QB online and I need information on rent-to-own bookkeeping. Part of our sales are based on the rent-to-own principle, on average 36 or 48 installments. How does one book this many installments in advance for coming years? How do you go about sending invoices & reminders to clients via Quickbooks?

 

As we are based in Aruba, we have to comply with local legislation which is in Dutch, our company's native language I find it a bit challenging to work with QB. Quick Books is used by 95% of all companies and large accounting firms, hence our choice. 

1 reply

JoesemM
JoesemM
January 20, 2021

Hello there, @Olga2020.

 

I want to officially welcome you to the QuickBooks Community. I have here the information you need for the rent-to-own bookkeeping and how it works with QuickBooks.

 

For your first question, QuickBooks has a class tracking feature that helps you track your income, expenses, or profitability by business segment. Just turn on this feature, so you track the property and assign transactions to a specific class per installment.

 

Before doing so, I'd still suggest consulting your accountant. They can provide further guidance to make sure this arrangement would work in your business set up especially for the 36 or 48 installments.

 

To turn on this feature follow these steps:

  1. Click the Gear icon.
  2. Select Account and Settings.
  3. Go to the Advanced tab.
  4. Click on the Edit button for Categories. 
  5. Check the Track classes box.
  6. Click on Save.

To add new classes:

  1. Click the Gear icon then All Lists.
  2. Click on Classes then New.
  3. Enter the class Name.
  4. Hit Save.

 

For more details, you can check out this article: Get started with class tracking in QuickBooks Online.

 

Then, for the second question, you can turn on the Auto Payment reminders. This way you can set that goes out a few days before or after the due date. Here's how:e

 

  1. Click the Gear icon on the top menu.
  2. Choose Account and Settings.
  3. Click the Sales tab.
  4. Go to the Reminders section and click the Pencil icon.
  5. Customize your greeting, the subject, and the email message.
  6. Click Save then Done. 

 

You might want to use recurring invoices. It saves your time and proposes a series of transactions according to the schedule you set. 

 

Also, as long as QuickBooks is compatible with your legislation it should be work. Though it's a bit challenging, rest assured that the QuickBooks support team will always help in case you need it in the future.

 

I'm adding these articles that will help you manage your QuickBooks account:

 

 

Please let me know if there’s anything else you need. I’ll be around to help. Wishing you the best!

 

 

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