Hi Mark
I run a property rental business so I have
4 Tenants; Customers
4 Mortgage Companies; Suppliers
4 Properties; Expense accounts
Property1
Property2 etc..
to which I assign all expenses (maintenance, mortgage, insurance etc..)
So a mortgage payment is recorded as Money Paid Out-:
Paid to = MortgageCompany1
Paid From = Cheque Account
Allocated to Account = Property1
Payment Type = General Payment
This seems to work fine as I can see how much each property is costing and how much is being paid to each mortgage company but I feel I should have each property as an Asset and each mortgage as a Liability but I'm not sure if this is correct or how to properly set it up
What do you think
Many thanks for your excellent service
Kevin
Cheers
Hi Kevin,
If you want to get an accurate Balance Sheet report (which shows the 'net worth' of the business) then you would need to create asset accounts to represent your properties and liability accounts to represent your bank mortgages. To create a new account click menu File > New > Account.
Also, you may want to break down the expenses by type - in that case you could create expenses named like this:
"Property 1 - Mortgage Interest"
"Property 1 - Insurance"
"Property 2 - Mortgage Interest"
"Property 2 - Insurance"
...etc
Regards,
