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Bookkeeping for Letting Agent using sage instant account

Bookkeeping for Letting Agent using sage...

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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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By iavago1
10th Sep 2013 17:58

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.

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By icomb
10th Sep 2013 18:40

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

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Replying to paulwakefield1:
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By zahidparvez
31st Oct 2013 00:59

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. 

 

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By Angel13
10th Sep 2013 18:43

Thank you for your reply, 

Thank you for your reply, 

I am not sure how to do this, see

1) DR £500 bank

 Cr  £500 Tenant account(money received for rent, paid direct into client bank account)

2) From client bank account, payment to Landlord account(DR £450) and transfer to Agent bank account(DR £50).

If I journal £50 from Agent bank account to say 4001(Management income), then I will have the income showing in P&L account, but Agent bank account will be CR, therefore the bank reconciliation will not balance.

Is there any other way, or am I wrong? please any suggestion will be highly appreciated.

 

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By Angel13
10th Sep 2013 18:53

I just saw your post, after posting mine, thank you so much, that solves the problem I think, I will go and try it and see. 

Thank you so much.

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By fiona_howells
11th Sep 2013 12:18

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

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By Angel13
13th Sep 2013 13:37

Thanks all.

Have a nice weekend.

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By firtrees
13th Sep 2013 20:52

RentPro

Why are you trying to use sage for something it cannot handle,

You should try out www.RentPro.co.uk 

 

 

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By Yvonnel_b
13th Sep 2013 21:24

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).

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By Angel13
17th Sep 2013 15:52

Sorted now, thanks all

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