Accounting for Personal expenses- payments for credit cards in Property Managment Sof

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Accounting for Personal expenses- payments for credit cards in Property Managment Sof

Timothy Heck
Member since 2023 · 19 posts · 4 votes

Hello,

I have been using Rentec Direct the last few months and am getting used to is, just a general question for PMS if you have personal expenses on a credit card, do you categorize those under "Owner Withdrawals" or create separate categories, ex for Medical expense or Personal Travel?

Also for when you pay a credit card, should you just delete that on your feed and account for it with the bank account feed you are using to pay it?  What do most folks with Property Management software do in this case?

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  • Simon W.Business Member
    Real Estate Consultant · Lehigh Valley PA & New York City · Member since 2013 · 1k+ posts · 691 votes
    3y
    Quote from @Timothy Heck:

    Hello,

    I have been using Rentec Direct the last few months and am getting used to is, just a general question for PMS if you have personal expenses on a credit card, do you categorize those under "Owner Withdrawals" or create separate categories, ex for Medical expense or Personal Travel?

    Also for when you pay a credit card, should you just delete that on your feed and account for it with the bank account feed you are using to pay it?  What do most folks with Property Management software do in this case?


    You can code it to Owner withdraws or due from Owner.

    You shouldn't delete it on your feed.

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  • Antonette El Baz
    Accountant · Member since 2023 · 48 posts · 30 votes
    3y

    I second the approach of coding personal expenses on a credit card to "Owner Withdrawals" or "Due from Owner". 

    It's important to never delete credit card transactions from your feed, even if they are personal expenses. This allows you to track and categorize expenses properly and also helps in reconciling your books accurately.

    I also recommend maintaining a strict separation between personal and business expenses to ensure that you can accurately track and manage your property's finances. 

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