Leasing Accounting is the process of recording payments made by tenants to landlords as they rent a property. It involves creating and maintaining an accurate ledger of all activities related to leasing, from signing the lease agreement to making payments. This system is necessary for business owners to keep track of their financial transactions, ensuring accuracy and transparency. As a result, real estate companies can properly account for their income and expenses, allowing them to make informed decisions when it comes to their leasing business. Furthermore, leasing accounting systems are also useful in assessing risks associated with leasing properties, such as vandalism and defaults. In short, Leasing Accounting is a vital part of managing a successful rental property business.