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quickbook for rental property

Posted by Donna 
quickbook for rental property
March 22, 2015 07:40PM
My husband started using quickbooks for our renall property approx 4 years ago. He did them on his own. Our accountant worked with him. I am now taking over the books as he has a new job lots of hours. I am finding that since he didn't know how to use that we have iinvoices and tenants still showing. Old invoices that did not clear off. I was wondering if I should start a new set of books for this year? I also have found that he did not carry over rents due. He kept it on writng paper and receipts but not in quickboooks. Should I just enter an invoice for the begiinning of year with the full balance due not the monthly payment due? Thanks for your help
Re: quickbook for rental property
April 01, 2015 10:37PM
Sounds like you have a mess on your hands. If you start a new file you will not have the historical transactions. If you haven't been reconciling the bank accounts a new file might be the best thing to do. You can transfer the lists and customers (tenants) from the old file to a new one.

You could keep the same file if you have factual information on what is due. If you know the old invoices were paid you could void them putting a note on the invoice. As for entering an invoice from the beginning of the year is not the best option. I would run an Accounts Receivable report and make an invoice for each tenant that would bring their account up to the correct total but date it the last day of last year.
IMPORTANT: the correct way to handle tenants is to make an invoice for their monthly rent, click the "Memorize " button at the top (or go to Edit, Memorize Invoice) and set it to automatically enter monthly. This will keep their past due totals correct in the Accounts Payable (or Open Invoice ) Report.

You MUST go to receive payments and check off the invoice for the invoice to show paid. If you just enter a deposit with the tenants name it won't clear ANY invoices. That's probably what happened to the open invoices in your file now.

Make sure any adjustments you make to bring the file up to date for this year are made dated last year so this year's reports will be accurate, for at least this year.
You can do a bank reconciliation bringing last year's ending balance up to date. I'm sure it will be way off if they didn't do it for a long time. You can make that correction to the Reconciliation Discrepancies account. Monthly bank reconciliations are a must for correct accounting. That's where you catch errors.
Good luck!

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