Good Morning Mark,
Firstly thank you very much for producing such excellent software. I have been using it for many years to manage the accounts for my contracting limited company and it has proved excellent.
In addition to this, I also run a small property company. I own several rental properties on a personal basis and I currently maintain simple accounts using my own spreadsheet. Due to the recent budget changes to mortgage interest tax relief, I am now planning to incorporate this business. Although I am very familiar with your software I have a few questions about how to format the accounts for an asset based rather than a services based company. As such, I have laid these out below and I would be extremely grateful if you could help with these:
Hi Kristian,
I'm glad to hear you like our software! To answer your questions:
I assume you are the directors of the company - in that case record a General Transaction from the Directors Loan Account to an appropriate asset account (you can have a different account for each property if you prefer)
Record an interest payment in the same way as for a bank interest payment:
http://www.solaraccounts.co.uk/help/how-to-record-bank-fees-or-interest-charges.php
Create a new liability account called something like 'Mortgage from Finance Company' and create a General Transaction from this account to the Directors Loan Account. This should reduce the balance of the directors loan account to zero.
Yes those expense categories look fine. You may want to use account groups so that the total cost for each property can be calculated easily like this:
Property 1 Expenses
Property 1 - Mortgage Interest
Property 1 - Insurance
Property 2 Expenses
Property 2 - Mortgage Interest
Property 2 - Insurance
Regards,
Good Evening Mark,
Thank you very much for the clear answers. We are indeed directors so that will work perfectly. I have also used account groups to summarise the expenses per property.
Thanks again for all the help.
Kind Regards,
Kristian
