Sample Chart Of Accounts For Property Management Company
Introduction
A chart of accounts is a list of all the accounts used by a business to record financial transactions. It is used to organize and classify financial information in a systematic way. A property management company is responsible for managing properties on behalf of property owners. As such, it needs to have a well-organized chart of accounts to manage the finances of the properties it manages. In this article, we will look at a sample chart of accounts for a property management company.
Assets
The first section of the chart of accounts is the assets section. This section includes all the accounts that represent the resources owned by the property management company. The assets section of the chart of accounts includes the following accounts:
- Cash
- Accounts Receivable
- Prepaid Expenses
- Security Deposits
- Property
- Accumulated Depreciation
Liabilities
The second section of the chart of accounts is the liabilities section. This section includes all the accounts that represent the debts owed by the property management company. The liabilities section of the chart of accounts includes the following accounts:
- Accounts Payable
- Security Deposits Held
- Accrued Expenses
- Notes Payable
Equity
The third section of the chart of accounts is the equity section. This section includes all the accounts that represent the ownership interests in the property management company. The equity section of the chart of accounts includes the following accounts:
- Retained Earnings
- Owner's Equity
Income
The fourth section of the chart of accounts is the income section. This section includes all the accounts that represent the revenues earned by the property management company. The income section of the chart of accounts includes the following accounts:
- Rent Revenue
- Laundry Revenue
- Parking Revenue
- Late Fees
- Other Income
Expenses
The fifth section of the chart of accounts is the expenses section. This section includes all the accounts that represent the expenses incurred by the property management company. The expenses section of the chart of accounts includes the following accounts:
- Advertising
- Insurance
- Legal and Professional Fees
- Maintenance and Repairs
- Office Expenses
- Property Taxes
- Salaries and Wages
- Supplies
- Utilities
- Depreciation Expense
Conclusion
A well-organized chart of accounts is essential for any property management company. It provides a clear picture of the company's financial health and helps in making informed decisions. The sample chart of accounts provided in this article is just a starting point. Each property management company should customize its chart of accounts based on its specific needs and requirements.
