Hi,
I am doing my first bookkeeping for Letting agent. The agent receive eg £500 rent in client bank account, on behalf of the Landlord, transfers £50 management fees to Letting Agent bank account, then pays £450 to the Landlord
I am using sage instant account
I am ok with recording rent received from tenant into client account, payment to landlord and bank transfer to letting agent bank account.
Here is the problem, the management fee is the income for the Letting Agent, as this money is transferred from Client bank account to the Letting agent bank account, Sage do not recognise it as income, and so it will not show in profit and loss account.
What do I do, as I need to show the management fee as income for the Letting Agent, and I also need to show the money in both bank account, in other to reconcile the two bank statements.
Urgent response will be highly appreciated please, please.
Regards
Angel
Replies (10)
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missing last journal
The account you are using to record all the transactions on the client bank account should have the remaining £50 on it. Just journal that to the management fee income account.
If Double Entry Helpful
DR Client Bank £500
CR Landlords Control A/c £500
CR Client Bank £450
DR Landlords Control A/c £450
DR Landlords Control A/c £50
CR Fees PNL A/c £50
CR Client Bank £50
DR Agent Bank £50
Correct, but is it not too time consuming?
Will it not take very long to do this journal for all landlords etc? Is there a quicker way of doing this?
Also when you are taking rent in client account, how you can take it as a receipt but not a sale using Sage or a similar software?
Also can you recommend a cost effective accounting software to specifically deal with letting/estate agents bookkeeping requirements.
VAT
If letting agent is VAT registered there will be VAT on their fees - surely the answer is just to raise a sales invoice and receive the money from the client ac into the main bank
RentPro
Why are you trying to use sage for something it cannot handle,
You should try out www.RentPro.co.uk
I used to work for three different letting agents - they all used software designed for letting agents - cannot remember names of the products but they worked well for them ( and me).