Rental Accounting Overview Tutorial
Rental Sheets includes Accounting Tools & Trackers that can help you track your rental income, your operating expenses, capital expenses & loan payments, so you can track your actual net income & cash flow for the property.
The Rental Accounting flow is broken down into 4 trackers. Rental Income Tracker, Operating Expense Tracker, Capital Expense Tracker & the Loan Tracker.
With your Rental Income Tracker will be used to track your rental income, application fees, interest income, & other income. You can track your income by unit and by tenant.
The Operating Expense Tracker is used to track your Operating Expenses for your property such as property taxes, insurance and utilities.
You can track your operating expenses by expense type, by Schedule E expense categories or by each individual vendor.
The Capital Expense tracker is used to track your Capital Expenses for your property. Capital expenses are expenses that are used to purchase the property or improve the property.
It’s important to track your operating expenses separate from your capital expenses, because they are treated differently for tax purposes. Operating Expenses are ongoing costs paid to run and manage the rental property and are fully tax-deductible in the year they are made.
While Capital Expenses used to purchase of the property or used to improve the property are recorded as an asset on the balance sheet and are expensed using depreciation over the useful life of the property or the improvement.
The final tracker the Loan Tracker which is used to track your Loan Payments. You can track the amount of principal paid, and interest paid for each month, and the Loan Tracker will calculate your ending loan balance for the loan.
All of your income and expense information then feeds into an Account Summary dashboard which gives you an overall view of your Project Income, Operating Expenses, Net Operating Income and Debet Service so you can calculate your monthly & annual cash flows for the property.
Overall our accounting tools provide a great way to organize all of you costs so you can track your rental property financials and be prepared for tax season.
If you have any questions about the accounting tools or trackers pleas shoot us an email or give us a call.
The Rental Accounting flow is broken down into 4 trackers. Rental Income Tracker, Operating Expense Tracker, Capital Expense Tracker & the Loan Tracker.
With your Rental Income Tracker will be used to track your rental income, application fees, interest income, & other income. You can track your income by unit and by tenant.
The Operating Expense Tracker is used to track your Operating Expenses for your property such as property taxes, insurance and utilities.
You can track your operating expenses by expense type, by Schedule E expense categories or by each individual vendor.
The Capital Expense tracker is used to track your Capital Expenses for your property. Capital expenses are expenses that are used to purchase the property or improve the property.
It’s important to track your operating expenses separate from your capital expenses, because they are treated differently for tax purposes. Operating Expenses are ongoing costs paid to run and manage the rental property and are fully tax-deductible in the year they are made.
While Capital Expenses used to purchase of the property or used to improve the property are recorded as an asset on the balance sheet and are expensed using depreciation over the useful life of the property or the improvement.
The final tracker the Loan Tracker which is used to track your Loan Payments. You can track the amount of principal paid, and interest paid for each month, and the Loan Tracker will calculate your ending loan balance for the loan.
All of your income and expense information then feeds into an Account Summary dashboard which gives you an overall view of your Project Income, Operating Expenses, Net Operating Income and Debet Service so you can calculate your monthly & annual cash flows for the property.
Overall our accounting tools provide a great way to organize all of you costs so you can track your rental property financials and be prepared for tax season.
If you have any questions about the accounting tools or trackers pleas shoot us an email or give us a call.
