Bookkeeping on multiple propertys in quickbooks

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I have 2 rental properties. When using quickbooks do you normally set up separate accounts for each rental property, or use one file and have accounts for each (Such as insurance, the sub-accounts for each property?

Thanks in advance for your help!!

One QuickBooks file for each business entity.  If you have multiple properties within a business entity, they all go into the same QB file and you distinguish them by assigning each a different class.

So, my property at 123 Main Street might be assigned the class "Main Street" and my property 456 Smith Road might be assigned the class "Smith Road."  Then, when I want to see the P&L of a particular property (for example), I can go into Reports and then choose "P&L By Class."

Yup, we do the exact same thing.  Your accountant will thank you for it, plus if something goes wrong in your book keeping you automatically isolate the problem to just one property instead of your entire operation.

I agree. Good advice. This is what i do as well. When it comes time to do taxes you will be happy you kept good records.

Thank you for all the help, as usual :)

The online version of QB has "property" classification as well as class. 

@J Scott @John Blackman @Tim Schmitz and anyone else that can help. We're in the process of converting our accounting from Excel to Quickbooks (although I would consider a different mainstream accounting platform). 

Our businesses are: A) Fix-and-flip;  B) Buy-and-hold; and C) Management company (this company wholesales and manages only our properties). Each property and the management company has its own LLC/bank account.

  • Do you recommend using one or multiple Quickbooks accounts? 
  • If multiple QB accounts: Do you recommend one QB account for each LLC? Or one QB account for the different business models?
  • If multiple QB accounts: My understanding is that on the Quickbooks Desktop version you can have multiple accounts, but on the QB Online you can only have one account?
  • If one QB account would suffice for our business: Is there a limit to the number of "classes"/sub-accounts you can set-up on Quickbooks Online? 

Thanks so much in advance for all of your rec's and help. And for anyone wondering, yes I am a former CPA. :)

Medium 19013 george logoJonathan Makovsky, Jon George Home Buyers | http://jongeorgehomebuyers.com/ | Podcast Guest on Show #107

When you say "accounts," do you really mean "files?"  

I use one QB file for each LLC (I can't imagine putting more than one LLC into a single file). And within each QB file, I use classes to delineate between properties. So, I might have a class called "123 Main," another class called "456 Maple" and another class called "789 First" -- each class is associated with a property and I tag all transactions with the appropriate class.

For business expenses not associated with a particular property, I use the class, "Overhead."

I am currently using one QB file (not QB online) per project.  It keeps everything in isolation so I don't cross the accounts.  Every project has its own bank account.

Although I am using xero.com to do all of my unified entity accounting which collects pay outs from those individual entities.

Ultimately I would prefer to do everything online, but I have heard horror stories about businesses being used as beta testers for QB online and changes completely destroying their books.

Our businesses are: A) Fix-and-flip; B) Buy-and-hold; and C) Management company (this company wholesales and manages only our properties). Each property and the management company has its own LLC/bank account.

Create one QB file. In QB, create three classes: Fix and flip, Buy and Hold, Management

Under each class create a subclass for each property for example 23 Spring Valley, 910 Princess Anne, etc.

A Profit and loss by class would show totals for each property, totals for each major class (Fix and Flip, Buy and Hold, and Management) and the totals across all three.

You want to make sure you assign a class/subclass to each transaction you enter in QB.

We have been doing fix and flips for over a year now and only used one LLC for all of them. We are in the process of switching to a C Corp to oversee multiple LLCs, specifically one for each property. We will also be keeping some of the properties as rentals starting next year.

My strategy for bookkeeping currently is to have each property in a separate class to tract profit and loss.  The idea of having a separate QB file for each property sounds very complicated, at least for the fix and flip aspect of the business.  I am thinking of creating two QB files, one for fix and flip and one for holds, then separating each property into classes.  Does this seem logical or does anyone have a better suggestion?

Other side question: I am planning on having one credit card for the company. I'm thinking that when I charge it to a particular property, then I would just pay the credit card for the particular amount from each individual LLC's bank account, while paying for overhead credit card charges with the main business bank account. I guess this is part of where I think the confusion could come in if I have multiple QB files for each property, trying to keep that all organized sounds like a nightmare.

Any suggestions are appreciated :)

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