Hello,
Does anyone know how best to set up a Client Account (Bank Account) in QF that does not get included in the Balance Sheet as the money is not owned by the company but in a separate Client bank account for client monies?
Unless there is a completely different way that this should be done?
Thanks,
Sachin
Hello Sachin
The data relates to your accounts, clients bank accounts should not be included in your accounts.
Any accounts you create will be included in one of the following category’s
Thanks Steve.
Following the instructions on Bookkeeping for Letting Agents it says at step three “Now tag the tenant income on your bank account as a transfer to the new Property Holding Account created in the previous step”.
When following letting regulations, the money from a tenant would have to come into a Client Account and not the business’ “Current Account”. Therefore, if there is a Client Account - then how should this Client Account be set up within Bank Management?
Could this step please be added to the Knowledge Base?
Hello @Sachin
You can set up a client account in the banking screen but as I said all accounts set up will be reflected on your balance sheet.
Thanks Steve.
Would it be suggested to have this as another Current Account or a Loan Account? I’m wondering what would be best that will still work with the Bookkeeping instructions?
Any Accountants here that may suggest the appropriate approach to take?
Hello @Sachin
Would it be suggested to have this as another Current Account or a Loan Account?
It wouldn’t matter to much as they would all sow under Current assets / Liabilities.
Thanks again Steve.
I now don’t mind the account showing on the Balance Sheet. But I am really frustrated now as I am following the instruction and process but because of this additional account, I am getting into quite the pickle as to what I am tagging and where. I am ending up with amounts in Suspense Account and all sorts with the end not matching the reality 
Hello @Sachin
I am getting into quite the pickle as to what I am tagging and where. I am ending up with amounts in Suspense Account and all sorts
As QuickFile is based on double entry bookkeeping there will always be at least 2 entries, when a transaction is untagged:
This is normal, once you tag it (tell the software where it should go) the value is moved from suspense and allocated to your where you tag.
Please see account 6131607800.
The Knowledge base says “The balance on the Property Holding Account created in step 2, should also now NET to zero with 3 entries for the tenant monies received, the management fee and the NET amount transferred to the landlord. This schedule of transactions can also form the basis of a statement that can be issued to the landlord.”
I agree that the above is the case, though I am not sure what is seen below is meaningful to a landlord? If I have done the transactions correctly?
Hello @Sachin
I think adding the extra client account has overcomplicated it the property holding account and the client account you have used seem to be the same thing.
The below would make more sense to the landlord (with the management fee added to this account)
Hi Steve,
Where I am struggling is that the account you have snipped will be the pooled (Client) account for numerous tenants and numerous landlords - an actual Bank Account. So they can’t see that view.
So the loan accounts by property are still needed but I just need direction on the correct way to do all the transactions.
So far it would work, but like I said just that it doesn’t make much sense looking at the Property Holding Account that’s been created.
If what I am asking is even possible?!
I’m guessing the Knowledge Base has not been created with the way in which Letting Agent transactions have to occur i.e. with a Client Account involved as well as the Business’ own Current Account - as that is not where the rent would come in if following legislation.
Nonetheless, I think we would have the same issue if following the Knowledge Base as the useful information would actually be on the Current Account and still not on the Property Holding Account.
It sounds to me like you’re over complicating your mental model - the client account is just another bank account as far as QuickFile is concerned, no different from if you had two separate current accounts with different banks or a current account and a savings account.
If you have a bank feed for the client account then great, if not you can manually create untagged transactions using the button at the top of the bank statement view, and then tag them in exactly the same way you would with current account transactions.
