If you're a TurboTenant user and received cash, a check, or a direct bank transfer from your tenant, you've likely marked it as manually paid in TurboTenant. This article discusses how payments you manually marked as paid in TurboTenant flow into your REI Hub portfolio and how to best book these transactions.
Some important things to know:
Payments you manually mark as paid in TurboTenant are automatically imported to REI Hub and recognized as revenue as soon as you mark the invoice as paid.
Deposits corresponding to those manual payments into your linked bank account should be booked using the 'TurboTenant Deposit' transaction type.
These deposits should NOT be booked as revenue to avoid overstating revenue.
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Payments Manually Marked as Paid in TurboTenant are Automatically Imported
Payments that you manually mark as paid in TurboTenant are automatically imported into your linked REI Hub account via the integration. You can see these transactions on the TurboTenant page (under Accounts on the left side menu) or the Booked Transactions page (under Transactions on the left menu).
Use the filter to toggle between viewing all payments, only electronically collected payments, and only manually marked as paid payments. You can also filter by property, date range, and transaction type.
Payments are imported already associated with the appropriate property and unit, as well as any included fees or other line items. With this information, everything needed to accurately report on the payment and any associated expenses for taxes is present in your REI Hub account. You will immediately be able to see rent payments reflected in REI Hub's reports, including the Net Income by Property and Schedule E.
When manually marked as paid payments are imported to REI Hub, they are booked to the 'TurboTenant Manual Payments' asset account. This is essentially an 'undeposited funds' account. When you receive a cash or check payment, the system doesn't automatically know if, when, or what bank account you will deposit those funds to, so they are not automatically booked directly to your bank account.
Book the Deposits from Your Import Feed as TurboTenant Deposits
If you have linked your operating bank account(s) into REI Hub, you will have deposits in your import feed corresponding to the payments you manually marked as paid in TurboTenant. Since the integration has already imported all the invoice level details for tax time and reporting, we do not want to book those deposits as revenue (as that would double record your revenues). Instead, book these deposits using the 'TurboTenant Deposit' transaction type.
When you select the 'TurboTenant Deposit' transaction type, we are transferring funds from the undeposited funds account (TurboTenant Manual Payments) to your bank account. Absent this step, manually marked as paid payments will fund the TurboTenant Manual Payments account (visible on the Balance Sheet). This doesn't affect your tax liability but doesn't reflect the fact that you deposited those funds into your bank account.
The integration automatically recorded all the important property-by-property information in the property management account, so you don't need to manually split bank deposits into individual property amounts and details.
Do Not Book Deposits as Revenue Transactions
If you marked the invoice as paid in TurboTenant, DO NOT record the corresponding deposit as revenue. The revenue has already been recognized, and we don't want to inflate it, so use the TurboTenant Deposit transaction type.
If you try to book a revenue over $100 from a TurboTenant-connected account, the system will display the following flag to help ensure that you do not accidentally double-book your revenues.
Still have questions? Reach out to our Support Team via email at [email protected] or call us at (888)939-6865.