How to Open and Manage Zero-Balance Accounts for Effective Financial Management of your Short-Term Rental Business
Manage zero-balance accounts for Short-Term Rentals. Simplify budgeting and enhance bookkeeping. Optimize rental property finances with Clearing today!
May 16, 2023
Michelle
Efficiently managing your rental finances is crucial for saving money and achieving your business goals. One powerful tool for achieving financial discipline and account organization is by using zero-balance accounts to manage your flow of funds. These accounts allow you to allocate funds for specific purposes, ensuring that you avoid overspending and stay on track with your financial objectives. In this article, we will guide you through the process of creating and managing zero-balance accounts in Clearing, specifically tailored for Short-Term Rental property owners.
Before we dive into the implementation steps in Clearing, let's explore the benefits of opening zero-balance accounts for your Short-Term Rental property:
- Efficient Financial Organization: Zero-balance accounts allow you to create separate accounts for different expense categories or assets, streamlining your financial management.
- Simplified Budgeting: Allocate funds to specific categories and easily track expenses, ensuring that you stay within your budget.
- Streamlined Bookkeeping: With dedicated accounts, your financial records are well-organized, saving you time and reducing human errors.
- Effective Tax Management: Separate your personal and rental property finances, making tax reporting and compliance easier.
- Enhanced Financial Analysis: Gain valuable insights into your rental property performance, identify profitability, and make data-driven decisions.
By utilizing zero-balance accounts, property rental businesses can simplify and automate their bookkeeping and save valuable time on their accounting. Now, let's proceed with the step-by-step process of how to create and manage zero-balance accounts for your Short-Term Rental business within Clearing.
Managing Zero-Balance Accounts in Clearing
Step 1: Login to Clearing and navigate to accounts
After you’ve logged into Clearing, click on “Accounts” from the menu options - you will find this brings you into the “Main” account section which shows you your main balance. You can have multiple “Main” balances, which means you can create one for each business (if you have multiple businesses) or any other entity class you desire.
Step 2: Click “Account details” to view your “Main Balance” information
If you’d like to see the details pertaining to your main balance, you can do so by clicking “Account details”. This will show you the unique account number, routing number, and other details pertaining to your account for this main balance. Feel free to give it a nickname, or tie it to an asset, if desired. You will also be able to view your statements through this window if necessary.
Step 3: See existing zero-balance accounts by clicking “View sub-bank accounts”
This will show you your existing zero-balance accounts that are attached to the main balance (if you have any) within Clearing.
Step 4: Access your zero-balance accounts
Once you have opened your list of zero-balance accounts, you can click on each sub-account, and see their account details individually. These account details are unique to that sub-account and appear in a similar form to the one we saw in Step 2.
Step 5: Create a new zero-balance account
In the main balance, you can click the “+” sign next to “View Sub-Bank Accounts”
Next, you should see a form for creating the new zero-balance account. Within this form, you can fill in the entity/business you’d like to link the sub-account to, give it a name, and link it to an asset (if desired).
Once completed, you can select “Open account”.
Step 5: Open multiple zero-balance accounts at scale
If you know that you will need to open multiple sub-accounts for the same entity/business, you can do so by clicking “Open multiple accounts”.
Once opened, add as many sub-accounts as you desire in the same window.
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When you are finished, click “Submit” to create these accounts.
Step 6: That’s it!
Congrats!You now know how to leverage the power of zero-balance accounts to streamline the financial management of your rental business. Further, you can now create new zero-balance accounts, at scale, simplifying your categorization processes for bookkeeping.
It’s that simple… within seconds, you can create a full book of zero-balance accounts that will be sure to streamline your rental property bookkeeping efforts.
Be sure to reach out to our dedicated Clearing support team for any additional guidance or support needed as you navigate the world of zero-balance bank accounts.
We hope this will start you on the right track towards financial efficiencies, and get you closer to taking permanent vacation from managing your property finances!
Stay tuned for future knowledge articles and exciting product announcements that will further enhance your financial management processes for your Short-Term Rental (or Long-Term Rental) business.
Onwards and upwards!
Clearing is a Financial Technology Company, not a bank. Deposit Accounts are issued by Evolve Bank & Trust, Member FDIC.
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