Advanced Accounting - Best Practices

  • Chart of accounts and account types

    A chart of accounts is a tool that categorizes financial transactions. Account types include income, expenses, liabilities, equity, and assets. For example: By default, Buildium's chart of account...
  • How do I add to my chart of accounts?

    Every financial transaction that you record in Buildium will be coded to one or more accounts. By choosing an account, you'll tell the software what the transaction is for and how it should be used...
  • How do I edit the chart of accounts?

    Buildium comes with a standard chart of accounts, but some customers choose to customize the list further by adding new accounts, or editing current accounts to contain an ordered number system. To...
  • How do I delete an item from the chart of accounts?

    If you need to remove an item from your chart of accounts, you have two options. If the account has no transactions tied to it, you can delete the account right away. If the account has been used ...
  • Moving transactions on your chart of accounts

    If your goal is to change only one or two transactions, it's better to adjust the individual transactions. Use this feature to make a sweeping change in your account: Navigate to Accounting > C...
  • Prepaid rent - Recognizing income in a different month from which the money was received

    Tenants and association owners are usually good at paying on time. Sometimes, they pay in advance or you require them to pay last month's rent up front, which can cause unwanted fluctuations in you...
  • $0 checks - Transferring money between properties

    In Buildium, a $0 check is a transaction that transfers funds within a single bank account between properties. The transaction is just to show money moving from one property to another in the same ...
  • Budgets

    A budget is a tool to plan upcoming income and expenses. Synonyms include financial estimates, financial planning, and fiscal estimation. For example: My rental owners are appreciative of the fisc...
  • Add a loan

    At present, Buildium does not have a formal feature for tracking loans. Our accounting system can track a loan for you through other functions.  A loan is an amount of money that is borrowed with a...
  • Add a mortgage (including amortization and escrow)

    If you want to track a mortgage for a property in Buildium, there are a few different steps to ensure it is entered properly so you can record any financial transactions associated with it. Use thi...
  • Add an opening balance from a trial balance report

    Use this topic if you're entering an opening balance using a trial balance report from another accounting program. This is an advanced option that allows you to enter opening balances for multiple ...
  • General audit compliance

    This article serves as general advice regarding audit compliance. Each state varies in their requirements, therefore, it is always recommended to speak with your state's licensing committee.  For i...
  • General audit compliance for North Carolina

    This article serves as general advice regarding audit compliance for the state of North Carolina. For specific questions or concerns, it is always recommended to speak with your state's licensing c...
  • Asset depreciation

    To track the depreciation of a property, create an asset account to track the property's accumulated depreciation. On your chart of accounts, create a fixed asset account called "Accumulated D...
  • Closing the books for a period

    Closing the books is an accounting term that means that all activity has finished for a period and no further changes are expected. In effect, you're locking things "as is" so that your r...
  • Closing out a rental property

    This topic lists general steps that you should consider if you need to close a property because it is sold or if you no longer plan to work with the rental owner. Come to an agreement about what's...
  • General journal entries

    A general journal entry is the core accounting transaction behind every financial transaction you create in Buildium. Using this feature is an advanced use of Buildium. Synonyms include GJE, journa...
  • Recording capital expenses

    Capital expenses such as property, fixtures, or equipment are treated as investments in your business; therefore they must be deducted (i.e. depreciated) over a number of years as specified in the ...
  • Recurring general journal entries

    Buildium does not currently offer a way to automatically repeat a general journal entry. This topic is offered as a work-around using our current functionality. Add a recurring check for the follow...
  • Common Area Maintenance (CAM) charges

    Common Area Maintenance charges are shared charges that are paid for by the tenants at the property. Common examples include trash pickup, snow removal fees, landscaping, and water/sewer. CAM charg...
  • Common expense allocations

    Common expense allocations allow you to easily apply property expenses to tenants for reimbursement. Common uses include non-metered utilities reimbursement, RUBS, and CAM charges. For example, 101...
  • Managing delinquencies

    Buildium offers a variety of ways to tell when a tenant or association owner is late. This topic offers an overview of how to answer the question, "how do I know who is late?" Buildium of...
  • Meter readings

    A meter reading is a record of the amount on a utility meter as of a date. For example A natural gas company records "therms." Electric company usually records kWh (kilowatt hour). An oi...
  • Payment instructions

    Payment instructions is a block of text that is displayed on the tenant site and association owner site, informing your residents where to send their money and other instructions. These instruction...
  • Ratio Utility Billing System

    The ratio utility billing system is a method of allocating utility costs among the residents of a property. The allocation is usually based on the size of the unit or occupancy. A common acronym fo...
  • Recording a tenant payment made directly to a rental owner

    From time to time, a tenant may pay a rental owner directly. In this case, it's important to record this money on the tenant's ledger for a few reasons: To ensure the ledger's accuracy. If the man...
  • Remove late fees in bulk

    Late fees are often a convenient way to reduce delinquencies and encourage residents to pay promptly. From time to time, it is necessary to clean up a ledger and remove late fees. Reasons can vary ...
  • Sharing late fees with clients

    Buildium supports the ability to charge a single late fee that is split among multiple income accounts. This feature is especially helpful when a property management company splits the late fee wit...
  • My tenant has no balance, why did a late fee post?

    Sometimes you may notice that a late fee has posted for a resident, but according to their ledger, the resident has a $0 balance. If the software adds a late fee when the ledger "by date"...
  • Tracking affordable housing payments

    Section 8 refers to a government program that provides affordable housing. You can use the following guidance for any sort of subsidized rental housing program. Setting up a lease ledger for Secti...