Running a property management business is no easy task. Not only must you constantly monitor your properties to ensure they are safe and well kept, but you’ll also have to manage the account aspect of your business. With most tenants paying their rent on a monthly basis, you can expect to have a large amount of payments coming in.
The good news is that Quickbooks makes accounting for property management businesses fast and painless. To learn more about how you can use Quickbooks to account for all of your property management transactions, keep reading.
Adding a New Customer
First and foremost, you’ll need to add a new customer in your Quickbooks account. If you haven’t done so already, fire up your Quickbooks software and click on the “Customer Center” tab. This is where you’ll go to add, remove, and manage various customers and clients. There are a couple different ways to go about using the “Customer Center,” but I recommend adding a single customer for each property.Keeping all of your transactions managed this way will allow for a smoother accounting process.
After selecting the “Customer Center” tab, you should now click “New Customer” and enter in all of the relevant information. You’ll be asked for things like name, telephone number, preferred payment, address, etc. Double check all of these fields as you are entering them to ensure they are correct. While reconciliations can help you find typos and errors, it’s better to get things right the first time.
Invoicing Your Tenants
Once you’ve entered the tenant’s name into your Quickbooks account, you can then set up a monthly invoice for them. From the “Job” menu, select “New Job” followed by entering any additional information it asks for. Remember, the invoice will print out with the tenant’s physical address listed, so make sure you get this information correct; otherwise, it could be considered void since the address is wrong.
When you are finished, you should now be able to print out the monthly invoice for your tenant. One of the great things about Quickbooks is the fact that it will automatically create rent invoices for you. As long as you entered the due dates correctly, Quickbooks will handle the rest. Of course, you can always print them out ahead of time if you prefer doing it yourself.
In addition to creating monthly invoices for your tenants, Quickbooks can also print out receipts for payments received. Look at the top of your Quickbooks account for the “Customers” tab; hover over it and select “Payments Received” from the drop-down menu. Scroll through to find the paying tenant and enter in their rent amount. Select “OK” and it will save the rent receipt directly into your Quickbooks account.
Performing property management account is just one of the many ways Quickbooks is able to help businesses perform their accounting. No matter what industry or line of work your business is in, chances are Quickbooks can help.