Setting Up Categories | Chart of Accounts

Rentec Direct makes it easy to manage a real estate portfolio with full accounting options. 

The most common account types used in property management are available by default, with the option to add more as needed. Check with your CPA or accountant to verify which accounts may be most beneficial.

Pro Tip: Use the Balance Sheet and Balance Discrepancy Reports to quickly balance your account.

Create a New Category

In your Rentec Direct account: 

1. Click on Settings 
2. Under Financial click on Chart of Accounts
3. Click on +Add Account
4. Enter a Description 
5. Choose a transaction type from: 
   1. Income (Rental Income, HOA Dues, and Application Fees etc.)
   2. Expense (Repairs, Landscaping, Management Fees etc.)
   3. Asset (Properties, Vehicles, Equipment etc.)
   4. Liability (Obligations owed; Mortgages, Loans, Credit Cards etc.)
   5. Equity (Shareholders' stake in the company; Opening Balances, Owner Contributions, Retained Earnings)
   6. Other (Transactions that do not affect income/expense reports; balance transfers)
      
6. Select a Class for further clarification of a type. On balance sheets and other reports transactions will be broken down by class.
   1. Income
      1. Standard
      2. Management Fees
   2. Expense
      1. Standard
      2. Management Fees (expense): Any categories related to the flow of management fees, placement fees, or commissions to your firm.
      3. Owner Distributions
   3. Asset
      1. Current Assets
      2. Fixed Assets
      3. Real Estate
   4. Liability
      1. Current Liability
      2. Long Term Liability
      3. Security Deposits
      4. Prepaid Rents
7. Set a Reference Number or allow the system to AutoNumber them for you (you can edit these numbers at any time).
8. Check the box if this category should influence your Schedule E.
   
   Important Note: We recommend you speak to your accountant to discuss your specific tax requirements. 
9. Click on Save Account 

Tip:  More information about financial reports can be found here:  Financial Reports

Editing Categories

You can edit categories for your unique business needs quickly and easily. 

In your Rentec Direct account:

1. Click on Settings
2. Under Financial, click on Chart of Accounts 
3. Click on the paper/pencil icon to edit
4. Click on Save Changes when finished 

Organizing Categories (creating sub-categories)

There are many reasons you may wish to reorganize your categories. For instance, you may get a request from your accountant to use specific categories to meet your business needs. To accomplish this, simply use the instruction above to edit.  

Tips: 

• The system doesn't use sub-categories per se. Instead, categories are organized by a reference number which can be edited in a subcategory fashion. 
• To help with this process, the system will allow you to use decimal points. This can be very handy when pulling category ledger reports which allow you to pull by one single category or multiple categories at once.