Rent Payments in QuickBooks
According to the most current figures from the Federal Reserve, total revenue from real estate and rental and leasing hit about $223 billion, an all-time high. Many landlords use accounting software to keep track of rental income since even a small investment portfolio can generate tens of thousands of dollars in annual rent.
What QuickBooks users need to know about recording rental income
Rent payments can be recorded in QuickBooks in two ways: either as a new transaction at the time of payment or as a reduction of an outstanding invoice. To review, in QuickBooks, a rental property is a Class, a renter is a Customer, and each rental payment is a Product.
Take in money when it comes in.
If the rent is consistent and due on the first of every month, some landlords may forego sending a monthly invoice to the Tenant. Payments for rent like these are recorded as soon as they are received. Follow these steps to log rental income in QuickBooks properly:
The Customer submenu can be accessed directly from the main menu.
Choose the option to be paid.
Pick the Receiving Account from the Accounts list.
Choose the appropriate Tenant from the provided Customer list.
Enter the amount of the payment.
Select Group With Other Undeposited Funds if you’re depositing more than one rent payment.
Continue by clicking Next and adding the remaining rent payments.
Then click Save and Close.
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