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.