What type of journal must a property manager prepare and maintain?

A receipts journal is crucial for property managers because it serves as a detailed record of all incoming funds related to the property. This type of journal tracks rent payments, security deposits, and any other income generated by the property.

Maintaining a receipts journal helps ensure transparency and accuracy in accounting, as it allows property managers to monitor cash flow and promptly address any discrepancies. It also provides an important reference for financial reporting and tax preparation, making it an essential tool in effective property management.

Other types of journals, while useful in certain contexts, do not focus solely on recording the incoming funds, which is the primary purpose of a receipts journal. This specialization in documenting receipts helps property managers effectively manage their financial responsibilities.