- In most accounting journals there is a debit or credit of two different accounts.
- This requires two rows to be shown to users for transactions, (1) debit row and (1) credit row.
- Sometimes the bank is one of theses accounts, and sometimes the bank is not one of the two accounts.
Take note: If you want to use the "opening balance" feature stop before you use the property journal and Read This
A tutorial on the how to - accrual accounting can be found here
With the Leaseze Property Journal we always show the user the bank column - named "balance" (whether used or not). Keep in mind when the correct accounting is posted, "that transaction may not affect the bank".
Examples are: When a rent charge is recognized in accrual accounting, the two accounts are "Rental Income" and "Rent Receivable" (accounts receivable) . In this example there is no effect to the bank. As there was not a increase or decrease in the bank account.
With Leaseze the user will see only one row per transaction
In normal journals there are two rows. We hide one row.
Most users are not trained in accounting and could not understand when to apply a "debit" or when to apply a "credit", or which general ledger account to use.
Note: This is a DIY (do it yourself) system and our company cannot train users in accounting 101, like a user would be trained for Quickbooks. Help can be found here.
Therefore we create these transactions by "Use-Case" with a do-it-yourself ease in mind. (Info on use case)
We provide the following accounting use-cases:
- Create rent revenue
- Post rent as an accounts receivable
- Post rent as a cash transaction as paid rent
- Post rent as an accrual transaction from accounts receivable to the bank
- Create property expenses
- Post an expense as accounts payable
- Post an invoice as a cash transaction as a paid expense
- Post an expense as an accrual transaction from accounts payable to the bank
- Post rent late fees as an accounts receivable
- Post rent late fees as an accrual transaction from accounts receivable to the bank
- Post deposits as a liability
- Post deposit refund to tenant
- Post year end expense as mortgage interest
- Post year end expense as depreciation
- Post year end expense as property taxes
- Increase bank balance as owner contribution
- Adjust bank balance as adjustment to income
- Adjust bank balance as adjustment to expense
- Reverse a transaction
- Income statement by date parameter
- Income statement by single property
Please note: Expenses will not appear on the tenant journal, only in the property journal.
Please note: Year end (Schedule-E) features are disabled until you have used this accounting system for one complete tax calendar year. We do this so you cannot post data that would be inaccurate.
Rent accounting example:
Leaseze accounting - Tenant Journal
What data does the tenant see?
The Landlord will see the Tenant Journal. This is the very same view a tenant will see as a tenant statement (in the tenant portal).
In the tenant journal we look at the data examples above the far right column is no longer "bank". The far right column is "rent receivable" (called "Balance due").
Honesty the tenant only wants to see how much they owe the landlord. And the posting in the Property Journal becomes the data we display in the tenant journal , only modified in a different form, more like a tenant statement display.
We understand 95% of the application users will not have formal accounting education. We automate the correct accounting for them so the GAAP standards will be enforced in the Leaseze accounting system.