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jamesgesmetro
October 6, 2020
Question

How to Classify Rent Collected on Behalf of a Client

  • October 6, 2020
  • 1 reply
  • 0 views

Hi, we are a property management company that from time to time has to recieve rental payments for our clients from their tenants. 

 

The main reason for this is because the clients do not accept e-transfers, so we accept the transfer and then we write a check from our company to the owner. 

 

The issue at hand is that when we deposit the rent, it looks like an income on our end, however its just a passthrough. 

 

How should I classify these deposits ? And how should i classify the withdrawal from when I reimburse my client ? 

 

Thanks 

 

 

1 reply

N
Nick K
October 6, 2020

Hi jamesgesmetro,

 

Making sure you're able to properly track money coming into your company is the key to good bookkeeping. I can help point you in the right direction for this.

 

Making entries into your QuickBooks Online account is made easy and has a few possible ways to enter this information such as journal entries, expense or a deposit transaction. Before making any of these entries however I would recommend speaking with your accountant to see which is the best way. If you don't have an accountant no worries, we have your back. In your QuickBooks Online account you can go to: My Accountant>Find a pro to help. This will bring you to our find an accountant page to find one to help in your area.

 

Have a great one!

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