When a real estate agency provides a single rental statement for multiple properties, reporting income for each property can be challenging. Ideally, ask your property manager to split the monthly statements, allowing you to create rules for easier tracking.
Rental statements summarise the income and expenses associated with your investment properties. Properly managing these statements ensures accurate financial reconciliation and compliance with tax reporting requirements. TaxTank provides tools to simplify this process, including options for manual entry and integration with live bank feeds.
If this isn't possible, manually add rental income for each property by selecting the 'Add' button in the income tab. Then, from the bank feeds, use the 'Find & Match' feature to allocate the income to the respective properties. This method ensures accurate income reporting and simplifies financial management across your portfolio.
If live bank feeds are enabled, you can allocate rental statement details directly from the corresponding bank transactions, streamlining the process further.
Step 1 - Add Income for Each Property
Navigate to the income tab of each property.
Click the 'Add' button.
Step 2 - Complete Income Details
In the popup, fill in the fields to split the income amount and any adjustments (e.g. property management fees) for each property.
Ensure that the total in the 'Amount' field matches the bank transaction income amount received. For example Property A amount $1,000 + Property B amount $1,200 = Bank transaction amount $2,200.
Step 3 - Match Bank Feeds
In the bank feeds section, locate the rental income bank transaction.
Click the 'More' button and select 'Find and Match' from the dropdown menu.
Step 4 - Allocate Rental Income
Select the rental incomes that correspond to the bank transaction amount.
Click the 'Confirm' button to allocate the income correctly.
Handling Negative Balances
If one property shows a negative balance funded by another property, follow these steps:
Record the rental income and expenses separately for each property.
Use adjustment categories to transfer or hold amounts between properties. This ensures that each property’s gross rental income is correctly balanced.
Reflect the agent’s hold-over or transfer between properties while maintaining accurate income and expense records for each property.
Tips for Accurate Financial Reconciliation
Double-check all entries to ensure they match the rental statements provided by your managing agent.
Use adjustment categories judiciously to maintain accurate records.
Regularly reconcile your entries with bank transactions to identify and correct discrepancies.
