How to Enter Deposits from Property Managers using Quickbooks Online

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  • เผยแพร่เมื่อ 18 ธ.ค. 2024

ความคิดเห็น • 62

  • @Nattodayy
    @Nattodayy 9 หลายเดือนก่อน +1

    This is exactly what I needed to know, can't thank you enough.

    • @Incomedigs
      @Incomedigs  8 หลายเดือนก่อน

      That's awesome! I'm so glad you found the video useful! I definitely recommend checking out our end to end course: bit.ly/reabcourse We dive deep into this and other concepts!

  • @page.amanda
    @page.amanda 4 หลายเดือนก่อน +1

    Great video - thanks for explaining things clearly! One question, with regards to the property manager fee and year-end 1099, I am not sure why QB does not prepare a 1099 for the PM. Am I missing something here???

    • @Incomedigs
      @Incomedigs  4 หลายเดือนก่อน

      Hi! QB certainly can prepare a 1099 for the PM! You just need to make sure 2 things are complete: 1. You indicate that the vendor is a 1099 vendor (checkbox on the vendor admin page) and 2. Ensure that the account: "Property Mgmt Fee" is listed as a 1099 account (done during the 1099 setup)
      We discuss this in great detail in our end to end course...Real Estate Accounting Bootcamp. Definitely check it out! bit.ly/3xaBohM

  • @suekramohr
    @suekramohr 10 หลายเดือนก่อน +1

    Thank you! Just the help I was looking for.

    • @Incomedigs
      @Incomedigs  10 หลายเดือนก่อน

      Thanks for watching! Definitely check out our end to end training! www.incomedigs.com/reab

  • @loriatkin5517
    @loriatkin5517 ปีที่แล้ว +1

    Thank you for your insight and help!

  • @STRATAFOLIO
    @STRATAFOLIO 4 ปีที่แล้ว +1

    Great video for anyone using 3rd party property managers! Completely agree you still need the complete record of each asset within your portfolio. Love the suggestion on making this a recurring transaction as well.

  • @AmyNovak-ry5je
    @AmyNovak-ry5je 7 หลายเดือนก่อน +1

    Thank you!! Exactly what I was searching TH-cam for!

    • @Incomedigs
      @Incomedigs  7 หลายเดือนก่อน

      Awesome! What else can I help you with? I'm always looking for new video ideas. Also! Definitely check out our end to end course and community...we'd love to have you! www.incomedigs.com/reab3

  • @lesliesmith112
    @lesliesmith112 3 ปีที่แล้ว +1

    Hi Nick, You definitely have the knowledge as well as a talent for clearly sharing information. Thanks so much! Please keep them coming!

    • @Incomedigs
      @Incomedigs  3 ปีที่แล้ว

      Thank You Leslie!!! Much appreciated!

  • @Bella-dq7qd
    @Bella-dq7qd 11 หลายเดือนก่อน

    Hi Nick. I love your videos! Always so clear and helpful. Do you have any videos or information on how to set up and run the accounting AS the property management company?

    • @Incomedigs
      @Incomedigs  11 หลายเดือนก่อน

      Hi! Thanks for watching! I don't have anything on that specifically...but we are queueing up some videos to start exploring the topic in more detail! Stay tuned!

  • @RobertoCardenasIsla
    @RobertoCardenasIsla ปีที่แล้ว

    Hello Nick, why do you use the cost of goods sold as Expenses? Thank you for the video

    • @Incomedigs
      @Incomedigs  ปีที่แล้ว

      Hi! I use COGS so that QBO calculates Gross Profit. To me, this is a huge help in tracking my KPIs. I put any/ all property-specific expenses against COGS. I can then easily track my gross profit over time.

  • @DevelopmentLLC-mn8rf
    @DevelopmentLLC-mn8rf 2 ปีที่แล้ว

    Thanks for sharing. Watched a few similar topic videos from different folks and yours was the clearest and simplest.
    Q: My management statements are available for download as Excel/CSV files. Is there a way to save some time by importing these into Quickbooks Online? Wondering if the data can be pulled in then go back and select Received from, Class, etc.

    • @Incomedigs
      @Incomedigs  2 ปีที่แล้ว

      Hi There....data import into QBO is not really available "natively". However, you could use a third party app. Something like www.saasant.com/ can do that.

  • @PLazzar
    @PLazzar 2 ปีที่แล้ว

    Hi Nick - Thanks for this tutorial. Very interesting.
    My situation is that I have about 20 rentals and I manage 16 of them and I have a PM managing the other 4. I receive monthly and annual statements for each individual rental under management.
    However, I don’t see a need to enter monthly data into my QBO. For management decisions, I would just use her reports and have a conversation with her. And the truth is, that there are very few management decisions that need to be made and even fewer where we’d need to look at the books.
    I’m going to receive a 1099 from her at the EOY along with an annual statement. At this point I can do a JE to enter the annual total for each category. Fewer entries means fewer mistakes.
    All I really need to do each month is record the deposits into my checking account. I can enter them as Rental Income and then they’ll get adjusted in that annual JE I mentioned above.
    Although using Recurring Transactions can make the process of doing monthly entries for all the details, it is just very easy to make data entry mistakes. I make them, my bookkeeper makes them, and I even saw you make (and correct) several of them too.
    Please tell me if you think I’m missing something.

    • @Incomedigs
      @Incomedigs  2 ปีที่แล้ว

      Hey Phil…thanks for watching! You are correct…you could certainly simplify by just adding the deposits as income. The technique demonstrated is helpful if you want the full picture of your rental properties at any given point throughout the year. I agree….adding the details certainly opens things up to data entry errors. Your thoughts/ idea is just fine. As long as you are good with the level of detail your QBO reports are giving you….no reason to over complicate it.

  • @kristindonnerlayeux3079
    @kristindonnerlayeux3079 ปีที่แล้ว

    Hi Nick, this is so much more helpful than other videos, so thank you! Question: Do you set up the management company as a customer or a vendor? As you can see, I'm jumping into your instruction in the middle but I need to finish these books for the investor group. Thanks again!

    • @Incomedigs
      @Incomedigs  ปีที่แล้ว

      Hi Kristin...thanks for watching! I would set up the management company as a vendor!

  • @BookerKidd360
    @BookerKidd360 3 ปีที่แล้ว

    Great video! Question: If the PM is holding funds as 'working capital' each month, how would you post that in QBO COA? I am thinking I should create either a Bank Account with the PM's name or an Other Current Asset? What are your thoughts?

    • @Incomedigs
      @Incomedigs  3 ปีที่แล้ว +1

      Hi Karen...great question!!! The answer: Yes! You can setup a Bank Account and treat it like any other Account trough which you log expenses/ deposits. This adds an additional layer of detail as you can literally mirror every single transaction (and date) that appears on your prop mgmt statement. The balance of this bank account over time will be the same as the balance of your Prop Mgmt account. If/ when the prop mgr sends you a check...simply record a transfer from your Prop Mgmt account to your business bank account.
      We teach this exact example/ process in our course, Real Estate Accounting Bootcamp: www.incomedigs.com/reab

  • @CruisePropertyManagement
    @CruisePropertyManagement 4 ปีที่แล้ว +1

    The challenge with doing this way is that if there's an expense or a deposit at the end of the year AFTER the owner draw, they will be reported in January within QuickBooks, not in December like it should. You will ended up reporting the wrong numbers to the IRS.
    Also, we all know that reconciliation is so much easier when the actual bank account transactions and the transactions within QuickBooks matches. Same can be said with the transactions (rent received, PM fee paid, repairs paid, etc.) going on within a property management company and the QuickBooks transactions. When all the transactions is done in one transactions, reconciliation gets harder.
    The better way to do this is by creating an "Other Asset Account," maybe called "Funds Held by PM" or something along that line. Record all the transactions within your PM company there. When the PM deposit the owner draw to your bank account, simply make a deposit from the "Funds Held by PM" account to your bank account.
    This way, the actual date you "received" the rent will be properly reported (as far as I know, the IRS will consider the date that the PM company received/paid money is the day you received/paid, not necessary the actual date that the money got deposited to your bank account.) Also, if the numbers are not matching up, you can easily compare the PM statement (by date) and your QuickBooks transactions. Finally, if you owe money or PM owes you money after the owner draw, you can see the amount within the "Funds Held by PM" asset account.
    I hope you don't mind me posting a blog that I made here about entering the owner draw to QuickBooks. I just made this before the video got published.
    www.propertymanagementil.com/blog/how-to-enter-the-payment-owner-draw-received-from-your-pm

    • @Incomedigs
      @Incomedigs  4 ปีที่แล้ว

      Thanks Soh.....you should record this transaction on the date it hits your account. The recurring transactions are intended to save you time. You should still go back and adjust the date to match exactly the date that the check hits your account. IF you do that...you're all set. Figures will all match.
      Thanks for watching!

    • @CruisePropertyManagement
      @CruisePropertyManagement 4 ปีที่แล้ว +1

      @@Incomedigs I agree that the figures will match, but the date won't. As far as I know, the date that is reported by the PM company is the date that you need to report to the IRS, NOT the date that the owner draw hit your bank account. If someone pays the January rent on 12/31/19 (and it is recorded as such in the owner statement,) and the PM company pays you that (minus management fee, etc.) in January, you still have to report the rent received in December to your 2019 Tax return.
      I just had someone deposited rent at the very end of the year after the owner draw. Had I not recorded the transaction date within the PM company to my QB and just did what you are describing, then I would have misreported the income to the IRS.
      One of the major reasons why we do bookkeeping is to report the profit, loss, etc to the IRS. We want to enter the record in a way that the accountant doesn't have to look line by line to see if whatever recorded to QB is indeed what needs to be reported to the IRS.

  • @Amethyst114
    @Amethyst114 2 ปีที่แล้ว

    Thank you for your video! If the property manager keeps an operating account (where they keep a certain amount of the rent income). How do I take that into account in Quickbooks?

    • @Incomedigs
      @Incomedigs  2 ปีที่แล้ว

      HI Emma! Great question...we actually get this a lot and discuss it in great detail in our REAB community.
      The strategy here is to create a "Bank Account" in you COA to track your PM account. Something like: "PM Account".
      You treat this kind of like a bank. When you get a statement from your PM, you would enter the expenses/ deposits to/ from this account as if you have control of a bank account. When the PM sends you money from this account to your business, you would simply Credit your PM Account and Debit your actual business bank accoujt.
      We discuss this strategy in great detail in our end to end course: Real Estate Accounting Bootcamp: bit.ly/reabcourse

  • @buffiedennis6548
    @buffiedennis6548 4 ปีที่แล้ว

    Very helpful. How do we keep track of who the repair/maintenance costs went to? We need to track that also in case we need to send them a 1099 form.

    • @Incomedigs
      @Incomedigs  4 ปีที่แล้ว

      Hi Buffie....great question!
      That gets a bit tricky b/c, as you notice, this single transaction only has 1 line for Vendor.
      In theory (although don't quote me on this...please review with your CPA), it would be your property mgr...the one who is actually exchanging funds with the Repair contractor who would be responsible for tracking expenses by vendor and issuing 1099s if applicable.
      That being said, you could use a journal entry in which every line allows you to indicate the vendor...that would allow you to differentiate a vendor for each aspect of the transaction.
      Thanks for watching!

  • @dylanvillanueva445
    @dylanvillanueva445 2 ปีที่แล้ว

    Do you have a video showing how to record a deposit from property managers that included money carried over from previous month? The property has been managed since 2021 but the accounting in QB is starting 1/1/22. We had a net of $45,819.51 for January but we received $64,000 from property manager because there were funds from December that carried over. I need to know how to record the difference. The property manager also left $2504 of the funds on file that will carry over to February.

    • @Incomedigs
      @Incomedigs  2 ปีที่แล้ว

      Hi Dylan..thanks for reaching out.
      In your situation, I would recommend keeping a "Bank Account" labelled as "Prop Mgmt Account". You will use this account to store any extra cash that the prop mgr carries over. This money is yours...you just don't have full control over it.
      Create a new Bank Account in your COA. Any excess will go into this account from month to month.

  • @kayolsen9701
    @kayolsen9701 2 ปีที่แล้ว

    Thank you for the video! I am having trouble and it could be user error...When the deposit comes into the account, I can put it to rental income, but when I try to add the layers (prop management fees, repairs exp) it only will let me select cash or my checking account. It doesn't let me select an account like professional fees or anything else. Have you seen/heard that before?

    • @Incomedigs
      @Incomedigs  2 ปีที่แล้ว

      Hi Kay...not sure what is going on here.
      Within the deposit, the first account you select in the top left corner indicates the account to which funds will be deposited. This will only be a checking account, cash, etc.
      From here, in the section labelled "Categories"...you should be able to select any account(s) from your COA. Each line can be indicated separately.

    • @kayolsen9701
      @kayolsen9701 2 ปีที่แล้ว

      @@Incomedigs I don't have the 'categories' option, my options in deposits are 'received from,' 'account,' 'description,' and then into the payment information. I have the basic quick books- is that maybe my issue?

    • @Incomedigs
      @Incomedigs  2 ปีที่แล้ว

      @@kayolsen9701 Yes...that is likely the issue. Could you please send me a screenshot via email and I can take a look? nick@incomedigs.com

    • @somuchcloser4806
      @somuchcloser4806 2 ปีที่แล้ว

      @@Incomedigs I have the same issue. Upgraded all the way to top tier and there is still no option to track a bank deposit to an Expense category like COGS or income category like Rent.

    • @Incomedigs
      @Incomedigs  2 ปีที่แล้ว

      @@somuchcloser4806 Hey there...there must be a setting we are not aware of. On the "Deposit" screen, you would have a few different fields: "Received From"....this would be a customer/ vendor....the next should be "Account". This is the field that would allow you to select a category. Can you confirm that this field does not exist? I'll offer the same as I did for Kay...feel free to email me a screenshot and we can try to dig in: nick@incomedigs.com

  • @bporange832
    @bporange832 3 ปีที่แล้ว

    Hi Nick. Thank you for your video! Which QuickBook version are you using?

    • @Incomedigs
      @Incomedigs  3 ปีที่แล้ว

      Hi There...thanks for watching! All demos are recorded using Quickbooks Online Plus

  • @AaronCooper-n5i
    @AaronCooper-n5i 11 หลายเดือนก่อน

    How do you handle a transfer or payment from me to my property manager for future repairs?

    • @Incomedigs
      @Incomedigs  11 หลายเดือนก่อน +1

      Hi! Thanks for watching! I would set up an "Other Current Asset" Account...something like: "Holding Account for Future Repairs". Your expense can be attributed to that account. Then, as your PM utilizes the funds, you would journal entry to indicate the repairs/ capex expenses.

  • @Incomedigs
    @Incomedigs  ปีที่แล้ว

    Check out my End-to-End Quickbooks Training. www.incomedigs.com/reab ($50 off w/ code TH-cam50)

  • @jefflawrence5835
    @jefflawrence5835 3 ปีที่แล้ว

    Are these funds coming from the property managers escrow account? Do we have to indicate that somehow on qbo?

    • @Incomedigs
      @Incomedigs  3 ปีที่แล้ว

      Hi Jeff...thanks for reaching out!
      Generally, yes. Your Property Mgr is likely maintaining a ledger. I like to think of this ledger as a "bank account" that you don't have direct access to. The funds are technically yours...but you don't have full control.
      When you receive a deposit from your PM, you can use line items within the deposit to indicate how the final deposit value came to be.

  • @rachellelefever8761
    @rachellelefever8761 3 ปีที่แล้ว

    So, if you enter the expenses into qbo this way-and auto feed deposits-how does this work with making invoices? Because if you receive payment on the invoice, you’ll have an invoice, a payment, and then a deposit. How do you show the invoice is paid.

    • @Incomedigs
      @Incomedigs  3 ปีที่แล้ว

      Hi Rachelle....I would not recommend invoicing if your Property Manager is managing the receipt of payments in QBO. I would only use Invoicing if you are the one responsible for collecting funds from your tenants.

  • @samirpaquil9868
    @samirpaquil9868 2 ปีที่แล้ว

    How do we account for property manager's deposit report with negative beginning balances? These are for recently acquired rental properties and the property manager's first deposit statement shows a negative opening balance.

    • @Incomedigs
      @Incomedigs  2 ปีที่แล้ว

      Hi Samir...thanks for watching! You could setup a "Bank Account" to represent the balance of your property Management account. This would allow you to hold positive and negative balances.
      We discuss this strategy in detail in our end to end course: www.incomedigs.com/reab2

    • @samirpaquil9868
      @samirpaquil9868 2 ปีที่แล้ว

      @@Incomedigs Could i use an other current account named as "Escrow - Property Managers"?

    • @samirpaquil9868
      @samirpaquil9868 2 ปีที่แล้ว

      @@Incomedigs Can you help me understand how to record the beginning balances for the "Bank Account"? Supposing the property manager sent the first statement with a beggining balance. Do i make an entry for the beginning balance? Debit PM Account, Credit Opening balance equity?
      thanks

    • @Incomedigs
      @Incomedigs  2 ปีที่แล้ว +1

      @@samirpaquil9868 That is correct! Debit PM account...credit open balance equity

    • @samirpaquil9868
      @samirpaquil9868 2 ปีที่แล้ว +1

      @@Incomedigs Thank you for your help!

  • @lenavergara9116
    @lenavergara9116 ปีที่แล้ว

    Quickbooks give me a message that amount recorded does not match the downloaded transaction - and will cause differences between bank and QB balance. Have you encountered this?

    • @Incomedigs
      @Incomedigs  ปีที่แล้ว

      Hi! You have to make sure that the net value of the deposit is exactly equal to the amount that actually got deposited in your bank. There seems to be a difference in these two numbers.

  • @ameliaclaire2776
    @ameliaclaire2776 4 ปีที่แล้ว

    HOW TO PREPARE AND RUN A RENT ROLL IN QUICKBOOK ONLINE

    • @Incomedigs
      @Incomedigs  4 ปีที่แล้ว

      Hi Amelia. Thanks for watching and for the question!
      Unfortunately, I don't think QBO is the best tool for OPERATING your Property Mgmt Business. I do think it is a great tool for managing the finances of your PM business. There isn't a great way to display a Rent Roll within QBO. To do this, you would want to use a product like Stratafolio. Not only does Stratafolio fill the Operations gaps left by Quickbooks...but it also integrates directly with QBO so there is no data lost! Highly recommended! stratafolio.com/

  • @managementkruthllc4060
    @managementkruthllc4060 3 ปีที่แล้ว

    Very helpful~

    • @Incomedigs
      @Incomedigs  3 ปีที่แล้ว

      Thanks for watching!

  • @mariehaydockrealestate4833
    @mariehaydockrealestate4833 4 ปีที่แล้ว

    Hi Nick. Thanks so much for these videos! Definitely filling a void, and I hope you keep 'em coming! Curious to know your perspective on a slightly different variation of entering deposits from property managers recently posted in this video here: th-cam.com/video/bylZN7Yn-nI/w-d-xo.html