Question asked by Alex Rooney 10 years ago
Hi,
We run a letting agency. As such we received rents on behalf of clients. These funds are not ours although we do deduct invoices from the collected monies for commission. How can i collect these rents without the system adding this as business income?
Hi Alex - how about setting up a dummy bank account called "Client funds". Every time you collect rent and pay it into your main bank account, treat it as a transfer from the dummy account. This will generate an overdraft in the dummy account representing the fact you owe the money to the landlords.
Assuming you raise invoices for your commission pay them off using the dummy account then, when you pay the net to the landlords, treat the payment from your main bank account as a transfer to the dummy account.
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