INTRODUCTION
A client dealing in the rental and real estate sector approached our organization, Mercurius for some bookkeeping services. They faced various challenges, but their main concern related to the recordings of rental incomes and expenses. Regarding this, our team of specialists took a measured and careful approach to each issue.
DISCUSSION
The client was running a real estate business and dealt with the rental and real estate sector. The company purchases properties, renovates them, and utilizes them for rental purposes. Along with this, they also trained students on how to deal with the real estate industry.
REQUIREMENTS
The client required an accountant who could help them through bookkeeping services for the rental transactions. The main challenge that the client faced was in recording rental incomes and expenses individually for every property in QBO properly. The other problems they faced were
- The company wanted to maintain a system where it could easily track the record of the tenant’s rent, utility expenses, and tenant moving in and moving out so that the company could pay bills such as utilities, and insurance properly at the end of the month.
- They wanted to check the inflow and outflow of money in the payment system of Stripe and Chase and record payroll in QBO.
- Also, the old bookkeepers could not maintain their rental expenses and tenant records properly, thus it needed to be managed.
SOLUTION
Mercurius is a professional accounting firm that has extensive experience in providing clients from various backgrounds with accounting services. We have a team of experts in real estate accounting. Thus, we were able to provide satisfactory service to this client.
Firstly, we carefully studied the problems that the client was facing and then we moved forward with the management of the accounts. We made use of the class feature to record income and expenses property-wise in QBO. There we assigned a name of the property as a class to each property and recorded concerned income and expenses to the respective property by using these classes. With this feature, the company was able to produce the report of P&L for each property.
To keep track of tenants moving in and moving out and to keep track of all the concerned expenses like utilities, and insurance, we recommended our client to use Buildium software. With this software, the company can keep a record of all the tenants in the same manner as the company desires. Also, to keep track of tenants’ move-in and move-out, we maintained G-sheets every month to cross-reconcile their records with Buildium software.
The client also wants us to work on bookkeeping and monthly reconciliation in QBO software and so, we have been working on the books for four years now.
CONCLUSIONS
After getting in contact with this client, Mercurius utilized its competent personnel to the best of its capabilities. Using the attractive features of QBO, we met the requirements of our client’s company. The company was able to make assessments of each property by checking various reports, we provided them property-wise and accordingly took appropriate decisions.
Our client was appreciative of the services we provided them for bookkeeping as well as maintaining the rental activity data and other services.
