Year End Statements: Understanding the Accounting and Using it to make Decisions
The Year-End Statement can be intimidating and hard to understand. Did you make money on your property? Did you lose money? The purpose of this article is to explain how to read and understand the year-end statement and more about the rental property income statements . Also, tips to use rental reporting to see if you may need to make some changes. As discussed in a similar article, these reports were sent out to our clients in January, along with 1099’s . What is a Year-End Statement? A year-end statement is a summary of all the accounting for the entire year. It’s important because you will use it to provide to your accountant for your 2020 taxes. It shows all the income and expenses, as well as money held by our company for your property or properties. It beats having to go back to every statement for the year, and add all those items up individually. What I’ll be discussing in this article is the summary by property and ...