Brandon explains the following:
✅ Creating a new Revenue Account
✅ Raising the rental income (including deferred and waived rent)
✅ Manual journal to account for the deferred rental and rent receivable
✅ How to invoice for deferred rent in a post Covid-19 environment
✅ Providing deferred rent statements to tenants and accounting for deferred rent once invoiced.
Whilst retention payments are very common in the building and construction industry we continually see them being incorrectly accounted for, or not accounted for, and therefore often overlooked, resulting in advance payment of taxes and/or lost income.
We are heading into a period of opening up the economy after COVID, with the need to repair the budget, an election looming by May 2022, the threat of inflation and a withdrawal of central bank stimulus.
While commercial property is a little more difficult to understand than residential, it offers several significant advantages for investors.