At the end of the financial year, it’s common for June rental income to be included in your annual rental statement even though the actual bank deposit isn’t received until July.
To ensure your records in TaxTank align with your annual rental statement, follow these simple steps using adjustment categories:
Step 1: Record the income in the previous financial year
Enter the June rental income transaction in TaxTank as usual, with two changes:
Set the Net Amount field to $0.00
Add an Adjustment for the expected net income using the category "Rent not paid out by Agent"
Step 2: Match the transaction in the current financial year
Locate the actual payment in your bank feed
Allocate it to "Rental Income"
In the Rental Income popup, add an Adjustment to "Funds held by Agent"
This reduces the Gross rental income to $0.00, since the income was already accounted for in the previous financial year.
This method ensures your income reporting is accurate and consistent across both financial years.