How to process Rent Income

Rental Income is something that many businesses have, where they sub-let part of their office space to freelancers or other entities. Each month they need to issue an invoice for the rent and record the receipt when it is received. This can be handled easily in JobBag by doing the following things:

1 Set up an account in your chart of accounts - typically this would go in the Other Income section of the Profit & Loss (P&L) statement (in the 6500 series if you are using the standard chart numbering sequence).

2 Create a Kind for Rental Income in the Kinds window.

3 If the database uses “Job Types - GL Mapping”, edit the Overhead job type, add the new kind for Rental Income as a default kind, and then map this kind within the job type to be mapped to the account you created in the P&L.

4 Create a Job for the tenant - this should be an Overhead job so that all transactions in relation to this are excluded from the Income Analysis reports as the rental income is not a normal part of your business. Set this job as a retainer job and create a retainer invoice

5 Each month, process raise an invoice for the rent, using the kind you created above, and give it to your tenant. They will need this for their tax purposes.

6 Enter the receipt when it is received.

Advanced tip You could set up the monthly rental invoice as a Retainer invoice, so that it is automatically created each month, or you could clone last month’s invoice each month.