I apologize if this has been asked and answered before. I am helping a friend set up her books. She is a sole proprietor who owns three rental properties. She has a dedicated business checking account and credit cards. So far so good.
Scenario:
Three rental properties are owned by Ms. Jones. (I have designated each rental property as a *class* for ease of tracking.) The properties are managed by a property management firm. The property management firm collects rent, provides and pays for maintenance and other services, and also takes a commission. The property management firm then provides the owner with a detailed monthly statement of the above items along with a check for the *net* proceeds.
Obviously maintenance and commissions referenced above are expenses ultimately borne by the owner. However the owner receives a check only for the net amount. The physical check received does not represent gross income.
How do I structure this scenario to track gross income with attendant expenses? Are some dummy/phantom accounts necessary?
Thank you, Stu