Accounting for aggregated rent payments, management fees, and maintenance costs can be quite challenging for property managers. That's why I've created a video guide to help you streamline your accounting process using a 'Staging Bank Account' when dealing with these consolidated rent receipts.
This method allows you to efficiently record and manage your transactions without resorting to complex accounting manoeuvres like journals. Plus, it makes use of the matching features provided by your accounting tool. The video focuses on the accounting tool Konnexsion, but the concept can be applied to other software as well.
Key takeaways from the video:
- Set up a Staging Bank Account – Create a separate bank account within your accounting software to represent the agent, PayProp. This account will be used to import the breakdown of transactions from the Landlord Statement.
- Import transaction breakdowns – Import the breakdown of transactions, including rent payments, management fees, and maintenance costs, into the Staging Bank Account. This will help you easily match these transactions to your rent invoices and create any necessary maintenance bills or transactions.
- Match transactions to rent invoices – Use the accounting tool's matching features to efficiently match transactions from the Staging Bank Account to your rent invoices, ensuring accurate financial records.
- Create maintenance bills/transactions – If there are any maintenance costs included in the consolidated rent receipt, create corresponding maintenance bills or transactions in your accounting software.
- Match the single receipt in your real bank account – Once all transactions have been matched and recorded, match the single receipt from PayProp in your actual bank account to ensure accuracy and completeness.
- Reconcile and review – Regularly reconcile your transactions and review your financial records to ensure accuracy and maintain up-to-date records.
By following these steps and using a Staging Bank Account, you can efficiently manage your consolidated rent receipts and maintain accurate financial records for your property management business. Watch the attached video for a step-by-step guide on how to implement this method within Konnexsion, making your accounting process smoother and more organized.