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NEWS YOU CAN USE |
n November & December 2010 n Volume 4, Issue 6
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Holiday Greetings & Hours Setting Up Bank Accounts Run DIY on your Mac Legal Entities Explained
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Holiday Greetings & Hours
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Integrating your bank transactions with your DIY system is a smart way to speed up operations. However, before you can enter any bank transaction into the system, you need to quickly establish your bank accounts. Simply start at the Company Setup page. From there, access the link for Bank and Credit Card Accounts (highlighted below) to establish all of the accounts that are owned by your management company.
Now add a row for each bank and credit card account (see screen below). Be sure to check the Allow Resident Payments and Refunds checkbox if this account is used for tenant transactions. If an account has not already been entered into the system, simply use the Add Bank button at the bottom of the Bank Account drop-down list.
From the Property Setup page (shown below), you can use the Primary Bank field (highlighted in below) to designate the primary bank account used for each property.
If this account belongs to the management company and has already been designated following the steps shown above, select the Management Co/Agency Bank Account option. If you need to assign more than one bank account to a property, use the More Bank or Credit Card Accounts link. These simple steps will integrate your information and ensure complete processing and reporting. |
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When you are defining your business in DIY, you have several options; each will affect how DIY keeps your financial books. It all starts at the Company Profile section of the Company Setup page (shown below). Read on to understand the difference among the options you can choose.
Select the Fee Manager option if all properties that you manage are owned by someone else. This means that you pass the rent collected, less any expenses, to the owner each month and issue a 1099 to the owner at year’s end. Opt for Sole Owner if all properties are either owned personally or by a single legal entity such as an LLC. Select the Multiple Legal Entities option when all properties are owned by more than one legal entity. Finally, pick Manage and Own when you both manage some properties (i.e. collect a management fee and send payments to the owner) and own other properties. Also select this option if you need the ability to produce trial balances and balance sheets for the properties you manage. Finally this option allows you to export transactions to a separate company in QuickBooks since the QuickBooks Export feature will group financial transactions by legal entity. More tips about Legal Entities: - If you have selected either of the last two options above, you will need to define which legal entity owns each of your properties on the Property Setup page. - When there are multiple legal entities, you have the option to generate all financial reports by entity. However, any bank accounts assigned to properties in a legal entity will be restricted to just those properties. - If a transaction is entered against a bank account in one legal entity for a property in another legal entity, DIY will generate the appropriate journal entries (called inter-company entries) to keep the entity’s Trial Balance report in balance. The entries are made to the Due To/From category and are used to keep track of money owed from one legal entity to another. Reminders will be displayed on your Home page until the funds are transferred. We are happy to provide you with flexibility in your financial reporting and company set up, and hope this Feature Focus helps you understand your options. |
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