Real Estate Accounting in Knoxville
Investors arrive in Tennessee expecting a simple tax picture because there is no state tax on wages, and then meet the franchise and excise tax at the entity level. The surprise is not the rate, it is that the obligation attaches to the structure most of them were advised to use.
Proud AppFolio Stack™ Partners, working directly inside your AppFolio instance.
Tennessee rules that apply here
- Deposit return deadline
- 30 calendar days
- Statute
- Tenn. Code Ann. Title 66, Chapter 28
Why Tennessee Real Estate Professionals Choose REA
AppFolio Expertise, Applied to Knoxville
Experts in AppFolio Bookkeeping
Tennessee levies franchise and excise tax on entities, which means the LLC an investor formed for liability protection can carry a state filing obligation the investor did not anticipate. The excise portion is measured on net earnings and the franchise portion on a net worth or property measure, so both a profit figure and a balance sheet are required. A portfolio kept on a cash-basis spreadsheet with no real balance sheet cannot produce the second one, and that is the common failure here rather than anything to do with rent.
Assigned, Responsive Team
The practical consequence is that entity-level books matter more in Tennessee than in states with no comparable entity tax. Each LLC needs its own closed books with a genuine balance sheet, not a memo allocation from a combined ledger, and intercompany balances between an owner's entities have to be reconciled rather than left as plugs.
Accurate Monthly Bookkeeping
On the operating side Tennessee's deposit rules require a separate account at a regulated institution with written notice to the tenant of where the funds are held, and failing the inspection or itemisation process forfeits the right to retain any of the deposit. Neither obligation scales with portfolio size.
Deposit Compliance for Knoxville Portfolios
Tenn. Code Ann. Title 66, Chapter 28
Tennessee requires written notice of any refund due within 30 days of the rental agreement terminating and the premises being surrendered, with an itemised list of damages and supporting documentation where deductions are made. Failing the inspection, itemisation or return steps can forfeit the right to retain ANY portion of the deposit, not merely the disputed part.
Tennessee is prescriptive about custody and disclosure. The deposit must be held in a SEPARATE account at a financial institution subject to federal or state regulation, and the tenant must be given written notice of where it is held. The disclosure is part of compliance rather than a courtesy, which makes it a process obligation as much as an accounting one.
All Tennessee requirementsHow we keep you inside it
- Deposit liabilities tracked per tenant in AppFolio, so a 30 calendar days deadline is answerable from the ledger
- Trust accounts reconciled three ways every month
- Deduction documentation recorded against the correct ledger
- Aging deposits flagged before the statutory window closes
Appfolio Bookkeeping Services from REA
Available to Knoxville Operators
Trust Bookkeeping
Leverage Appfolio's powerful bookkeeping capabilities with REA's tailored service.
See how it worksCorporate Bookkeeping
REA's skilled team, in combination with Appfolio's comprehensive toolset, addresses the complexity of your corporate financial activities.
See how it worksBank Reconciliations
Employing Appfolio's state-of-the-art system, REA offers bank reconciliation services that brings meticulous accuracy to your finances.
See how it worksFinancial Diagnostic Cleanup
REA utilizes Appfolio's advanced diagnostic tools to swiftly and effectively troubleshoot financial anomalies.
See how it worksTrust Compliance
REA pairs its accounting prowess with Appfolio's detailed reporting to deliver comprehensive Trust Compliance Verification services.
See how it worksAppFolio Accounting & Bookkeeping Services
For Knoxville Portfolios
- Process Review & Set Up
- Bank Reconciliations
- AP / AR
- Accurate NOI, Balance Sheets
- Recording HUD's & Accruals
- Owner Distributions
- Monthly Statements & Reports
- Management Fees
- Corporate Bookkeeping
- Tenant Chargebacks
Take the Whole Close, or One Function
Knoxville operators use REA for the full monthly close or for the single function that has become a bottleneck. Each one is performed inside your AppFolio instance.
Trust Accounting
Compliant, audit-ready trust funds
Learn moreBank Reconciliation Services
Three-way reconciliation, every account
Learn moreAccounts Payable & Receivable
Bills paid, rent collected, owners paid
Learn moreBookkeeping Cleanup & Catch-Up
Back books fixed and current
Learn moreCAM Reconciliation
Annual commercial true-ups
Learn moreExperts In All Property Types
- Single-Family
- Multifamily
- Student Housing
- Affordable Housing
- Community Associations
- Commercial
Experts In All Property Types
Residential, commercial and everything in between. The asset class changes what the books have to prove, and our teams are staffed accordingly.
- Single-Family
- Multifamily
- Student Housing
- Affordable Housing
- Community AssociationsSee the page
- CommercialSee the page
Check Out What Our Clients Have To Say About Us
Property Managers, Investors & Owner Operators
I highly recommend Real Estate Accounting (REA) services from this group. They truly are great and have helped us tremendously at a time we needed it the most. I felt very comfortable giving up all my accounting responsibilities to this team and I'm still glad I made the decision to work with this group. Nothing less than an amazing experience!
REA and team have been nothing but excellent helping our firm with its day to day financial needs. Their expertise, professionalism, and timeliness have made our lives so much easier. We foresee a long relationship with REA and team.
Real Estate Accounting truly is a special company. They helped as if they were a part of our company, with the concern and caution as an employee would have, but even more. They quickly ascertained our needs and developed an effective team to help with our accounting needs. They were extremely responsive and always accurate. I would recommend their services to anyone who needs help with their property management accounting.
Frequently Asked Questions
Tennessee has no income tax, so why do we have a state filing?
Because franchise and excise tax attaches at the entity level, and most investors hold property in an LLC. The excise portion is measured on net earnings and the franchise portion on a net worth or property measure, so you need both a profit figure and a real balance sheet.
Do we need separate books for each LLC?
In Tennessee, effectively yes. The franchise measure needs a genuine entity-level balance sheet, which a combined ledger with memo allocations cannot produce. We close each entity and reconcile intercompany balances monthly.
What are the Tennessee deposit requirements?
The deposit goes in a separate account at a regulated financial institution, the tenant must be told in writing where it is held, and the itemisation and inspection steps must be followed within 30 days or you can lose the right to retain any of it.
More in Tennessee
Other Tennessee markets, the platforms we work in, and the functions available on their own.
AppFolio Bookkeeping for Knoxville
Schedule a call and we will review your AppFolio setup, your Tennessee deposit handling, and what it takes to close clean every month.