Every transaction affecting your account balance is recorded and explained in detail. Accounting is done on double-entry cash basis with a income and expense ledger maintained for each property, just as if your property had its own checking account. If we manage more than one property for you, we open another income and expense ledger in your name (in addition to the property ledgers). This enables us to transfer funds among your properties without intermixing accounting transactions from different properties. Each property always has its own separate and complete accounting records.
Copies of all work orders and receipts are kept on file throughout the year. We will be happy to provide duplicate copies of this information at the end of the year to help you with your tax preparations.
In addition to the monthly statements described in the next section, we also provide a complete summary of account at the end of the year. This shows you each accounting transaction posted on your property during the year as well as a summary of all transactions by specific accounting code (total rent received, total mortgage payments made, total plumbing expenses and so on). These statements have been specifically designed to simplify the year-end tax preparation for you or your accountant. Our computer system enables us to get this vital information to you immediately at the end of the year.
As required by Internal Revenue Service regulations, we prepare and submit a 1099 MISC. form showing the total gross rent income that we collected on your behalf during the year. A copy of this form will be sent with your year-end statement.
ACCOUNTING STATEMENTS
Our computer system enables us to provide you with a concise, accurate, and understandable statement of account. Plus, it allows us to get your statement and any rent proceeds due you quickly. Statements are normally sent by the 10th of each month. Occasionally, a statement will be held up for a few extra days because of a late rent payment, in order to send your full monthly rent proceeds.
Your statement will include a check for any funds due you above your minimum balance, unless the amount is less than $5.00.
Your statement shows every transaction we have posted to your account. Please report any discrepancies you find within 15 days from the time your receive your statement.
In addtion, Nester Property Management offers all of your property statemenst online! Easy access for all of your monthly statements, bills, estimates and more! Click here for more information about this exciting service.