Occasionally I have to sent funds to my rental property manager, in preparation for an expensive item in the coming income statement. For example Rental income minus expenses could be 2,000 but the item will cost 3,000. So it can’t be resolved in the next statement without extra funds. I do this so as to keep ALL outgoings being reported in the rental statements.
See below, 3rd pic, what I did in myob. The account is an asset and not often used. I’m still a beginner at Manager.io so I can’t get this system to work here yet.
I don’t think there’s enough information in the original post to provide a reliable answer.
Could you clarify the nature of the funds you sent to the business? For example, were they:
a loan to the business,
an owner’s capital contribution, or
something else?
The accounting treatment depends on the relationship and purpose of the payment. Without that context, it’s difficult to advise on the appropriate debit and credit entries or explain how to record the transaction in Manager.
It would also help to know whether you’re primarily looking for accounting guidance or instructions on how to enter the transaction in Manager.
G’day Abeiku,
The funds are simply to allow me to pay for everything via the property manager monthly statement. The funds would usually sit with the manager for a few days, a week maximum. The account I use is therefor an asset and will be zero for 98% of the time. As an example, as per the screenshots, it’s to help pay for hot water services, ducted heating anything that’s over $2,000.
Definitely not after accounting advice, my accountant has been happy with the myob screenshots for many years now. Just need to get manager.io to do it.
Actually I just asked chat GPT, it suggested simply making a regular “asset” account, I may not need to worry about control accounts, or even use a “bank or cash” account. Think I’ll name it “Funds parked with prop mgr”.
The payment to the property manager may be allocated to an asset account named - Property Management - Trust Account.
Lets say you paid the property manager an additional $1,000 and the landlord statement for the month showed the following: Receipts
Rent received 4,000
Landlord receipt 1,000 Total receipts 5,000 Payments
Management fees 200
Strata levies 1300
Council rates 250
Painting repairs 3000 Total payments 4750 Payment to landlord $250
The receipt of $250 would then be recorded as follows:
Thanks for your help. Much appreciated. Tony your example is exactly what I did. It’s much simpler than what I was initially trying, with control and cash accounts.
Once again, thanks.
