What kind of account would this be?
I am new to Wave and, having outgrown the spreadsheet approach to managing two small businesses, I'm giving Wave a go.
One of my businesses is a cottage rental, which involves an "account" with what is essentially a property and rental management company. I receive monthly statements, which (to simplify) include:
- Any expenses incurred, that my business must pay
- Rental income collected that is owed to my business
- Net difference that is owed to my business, or that my business must pay
The monthly income/expense total is then paid directly to/from the bank account (already linked to Wave) for my business. I'd like to add this "Rental Management Account" to my Chart of Accounts in order to track and properly categorize the transactions occurring on those monthly statements, but I'm not certain what Account Type to assign to it.
To me, while this is not a traditional bank account, it does exhibit the behavior of one. So, it seems like I would add it as a "Cash and Bank" account - thereby allowing me to manually enter the transactions from each monthly statement, and when the net statement amount would be a transfer between that and the business' actual bank account.
This is simply what I've puzzled-out by thinking about it a bit, and simply want to validate my thinking with the community.
Is this a valid/correct approach? Is there another, and possibly better approach to consider?
Thanks in advance to anyone who providing advice!