Accounting and Property Management

[Ryan H.]

Hello,

I recently closed on my first rental and am working with a property management company.  The company subtracts expenses for work (on the property) that I've already approved before disbursing rental income.  While this minimizes the number of transactions that need to take place between us, it seems like a bad idea from an accounting perspective on my side.  They provide detailed statements, but I won't be able to verify via bank statements income and expenses related to my business.  Would you agree? 

[Joseph Firmin]

It shouldn't be a problem @Ryan H.. Your CPA can look at the statements and use those to prepare your tax forms. If you are just wanting accounting - then you could enter the expenses in manually into an accounting software like Stessa. You're right, they won't come into the program automatically or match to bank statements, but you should have a good record from the PM statement and the "Cash Out" or disbursement to you from the PM should match your bank statement.