They have a rental bank account which all the rents come into from the tenants, they pay the landlord from the same account and the balance left is their fee (inc VAT), how can I allocate the fee to the correct revenue account?
I have the rent going into a revenue account Rental income Gross.
I have the management fee going into a Sales account called Management fee from Rentals
The payment back out to the landlord in a Direct Costs account.
The problem Im having is that the Management fee income that I get by raising an invoice to the landlord keeps coming into the Rental Bank account and showing as a extra credit
So hows about an intro before we start. We always ask newbies!
Usual stuff - what prof body do you belong to, do you work for yourself or in a practice/ firm, are you a bookkeeper or accountant, what qualifications, how long in role, where up to in your studies-what exams passed/with what body/in midst of doing, where based, what you did before this role? That sort of thing. Helps get to know you but also how best to pitch answers.
Also please you add your first name so that it appears under the signature bar on your posts. Saves everyone looking it up each time!! (Edit profile --->signatures).
Edit - OP has been back on, but net responded.
I would add - best advice is to get a great bookkeeper as its all looking a bit wrong from the description given anyway (not just the last part being struggled over!) / What does your Accountant say?
-- Edited by Cheshire on Saturday 26th of May 2018 12:34:24 PM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
