I have a rental property that I have a loan for a $ amount and I collect rent from a renter, I then pay down the loan. Can someone please tell me how to set this up so that the rental income is received, and then applied & paid to note?
use a service or other charge item to charge for the rent, receive the payment, make the deposit
then use write checks and pay the loan
I'm a new user. Why would you not want to use invoices to accomplish this instead?
@ DS
Yes you use an invoice if the customer is going to pay you later, a sales receipt if they walk in and pay
I didn't mention either one in my answer, where did this question come from?
From reading an adjacent post. Trying to put the pieces together of how to set-up my accounts. Thank you.
The help files and video tutorials are helpful. QuickBooks for Dummies, and Business Accounting for Dummies are great books.
QB is an accounting program and has a steep learning curve regardless of what the PR says. And a basic knowledge of accounting is necessary to use QB effectively.
Click solved (thumbs up) if you think it is
Rustler summed it up for you quite nicely.
Sometimes we have a tendency to over analyze things. I have that problem when I'm taking tests or exams.
Your rents received is your income, just as though you received a pay check from an 8 to 5 job.
You take that income and pay your bills with it.
You setup a loan in QuickBooks and then write a check from your checking account and apply it to the loan.
Since you are now a "Boss", owning your own company you have to think like one.
An Invoice is a bill that you send to your customers. In this case your company has Tenants and they are a customer, so you will Invoice them for rent that is due.
When the tenants pay their rent you have money to pay your bills. Write a check from that income to pay your loan.
If your tenant pays you in advance or before you send them an Invoice you type up a Receipt, just as though someone came into your store and purchased something. You hand them a receipt. But if someone pays you later you send them an invoice.
Sometimes it takes awhile to wrap your head around the concept of being a Boss verses being the Customer. You have to think like a business. Just think of how a business does business with you.
A mortgage company sends you a bill. When you go to a restaurant you get a receipt.
Nancy Neville
