How to record Rent Received in a transfer account for proper recording for Tax purposes.

Question

I am trying to figure out how to get a rent payment to record properly in my business account.  The problem is making sure I can reconcile to the bank records.  because the bank will not allow Zell payment into my business account money is deposited into a personal account and then transferred.  However when I make the transfer from the personal to the business it logs the account as the category and not my expected rent received, and if I change that it changes the category in the transfer account.  How can I correct this to show a proper transfer and category without having to make multiple correction entries.

Here is the situation

* Tenants make electronic payments and the are deposited into Account #1.
* Money is then transferred to business account for tax reporting purposes Account #2.
* Unable to change the category for reporting to rent received without it creating confusion on the transfer.
* How can I get a proper rent received category logged without having to create multiple entries and transfers?

Thanks,

Frederick

F_S · Answer

NotACPA,

I understand what your saying and yes I am entering my rent payments in via rental center in "Q".  The problem I have having is that my bank will not deposit it directly into my business account, but I know see how this will work so I think it will be good.

Thanks,

NotACPA · Answer

Are you recording the rent as being received in Q's "rent center"?

Direct that payment to an intermediate account, I used to call mine "Undeposited Checks".

When the payment comes into the Zelle account, show it as a transfer from the Undeposited Checks account … which will zero out that account and the money should show as Business because of the transaction in the Rent center.

BTW, in Q, it's categories and their tax status, NOT accounts, that determines business vs personal.