[GNC] GnuCash for a Letting Agency (holding client money)

[zcacogp]

Hi, 

First message here. Be gentle - thanks! 

First time user of GnuCash as well. AND, making things worse, I don't know
much about accountancy either. Hence this post. 

I run a small letting agency, and have always done my accounts on a series
of spreadsheets. It's worked for a number of years but my accountant if
getting fed up with what is effectively a very disparate bespoke system and
asked me to start using a proper accounting package. GnuCash looks good and
I'd like to make it work for my business. 

I'm not an accountant and hence am not /au fait/ with accountancy
terminology, but am learning fast. I think I've understood some of the
basics of GnuCash (I've been playing with it all afternoon) but can see that
setting things up correctly will be a major part of success or failure. My
agency handles client money; a tenant will pay me their rent (£1000/month),
I raise an invoice for my agency fees (£100) and pay the rest on to the
landlord (£900). Am I best advised to set up each property as a separate
account file or as a separate Account under "Current assets"? Bear in mind
that of the rent payment above then only £100 of it is company money; £900
belongs to the landlord from the moment the payment is made to me. 

For what it's worth, my business has two bank accounts; one Clients Money
Account (where the rent is paid into) and one Company Account (from which I
pay bills from suppliers and so on). 

Other posts on here suggest that I should treat the payment as being £100 of
income for my company and £900 of loan, and I pay off the loan to the
landlord who exists as a creditor of mine. I understand this concept but am
not sure how to set this up on GnuCash. I am sure I can learn, but helpful
tips would be welcomed. 

Thanks in advance for any help. 


Oli. 



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