Sunday bookkeeping

Goals, Business Plans & Entities
11yFollow

Sunday bookkeeping

Shayla Fletcher
Residential Real Estate Broker · Pineville, LA · Member since 2014 · 44 posts · 23 votes
I must admit that I struggle with bookkeeping . I always say that I'll do better on the next project or next year. This drives my husband nuts. One of my 2015 goals is to improve in this area. My strategy is to tackle this on Sunday's while watching hgtv. What is your bookkeeping strategy? Besides hiring someone lol...btw I use a wonderful spreadsheet that I downloaded on BP. Works great as long as you keep it updated ????.
0Reply
112 views

Most Popular Reply

Brandon Hicks
Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
11y

I actually enjoy this side of my business. I normally do it all on either Saturday or Sunday while my kids proceed to destroy my house unsupervised......

Maybe I should rethink the timing of this activity! :)

9Reply
See this reply in the discussion

39 Replies

Jump to latestLatest
  • Derek T.
    Real Estate Investor · Prince Geroge's County, MD · Member since 2012 · 392 posts · 104 votes
    11y

    I definitely understand your problem. I think the best way to do it is to set aside a day each week like you stated, get in a habit to do it right away when you have expenses,  or hire someone to do it.   

    I hired a person to do this among other things and the reward outweighs the cost.  Someone told me once to put a value on my time and if you can hire a competent person to do the same thing for less than go that route.  For instance if I value my time at $50/hr and it takes me 2 hours to go check in on a property, then why not hire someone who will do it for you for $8/hr?  For me it made the day to day a lot easier. 

    1Reply
  • Arlan Potter
    Investor/Accountant/Builder · Meno, OK · Member since 2014 · 1k+ posts · 918 votes
    11y

    if you use quickbooks, and never pay for anything without using the system along with assigning a job/house to the check, and the rent is posted automatically. Then 99% of your accounting is done. 

    1Reply
  • Brandon Hicks
    Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
    11y

    I actually enjoy this side of my business. I normally do it all on either Saturday or Sunday while my kids proceed to destroy my house unsupervised......

    Maybe I should rethink the timing of this activity! :)

    9Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    11y

    I just started using Quicken Rental Property Manager which works a lot like Mint.com and updates your transactions since your last log in.  Then you just categorize and allocate everything.  It takes time to set up if you have a bunch of properties but now I log in on Mondays and allocate everything for 33 units in about 30 minutes. 

    I also like is cause it uploads to TurboTax which is what we use for our taxes

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    5Reply
  • Jason D.
    Investor · Rockford, MI · Member since 2013 · 116 posts · 54 votes
    11y
    I struggle with the same thing and have made it a priority for 2015. What file from BP are you using? I've looked but haven't found/settled on one.
    1Reply
  • Gita FaustBusiness Member
    Accountant · Richboro - Philadelphia, PA · Member since 2008 · 901 posts · 246 votes
    11y

    Just wrapping my next book - and while taking a coffee break -could not resist responding to this post. We have saved Linda stress, sleepless nights and with few of this tips she reduced 3 lbs the first week. We are in our 5 month she has saved over $5000.00. You can image what shape she must be in. I just shiver with that thought. So let me share some MUST HAVE's:

    -- On the road Must Have - pen, cell phone (take pictures of receipts), credit card for business use only and a bottle of water (optional small stapler). And a app - where you can upload all the receipts. NOT TO FORGET 12 envelopes stamped Receipts - with month and year in your car/truck glove compartment.

    -- While opening the mail Must Have - always have a letter opener, pen, trash can, one fast scanner and folders. When you open the mail, write down the property name or circle it and clearly state if the charge is an expense or to be capitalized. Folders should be labeled, filing, enter in QB, Accounts payable and more as needed.

    -- When shopping Must Have - carry a pen or ask the cashier for one - write down the property name and if it is an expense or to be capitalized.

    -- When hand writing a check - Purchase three part you guessed it right- write down the property name and details or stapler

    SOFTWARE - Either Excel, QuickBooks, Quicken, or any other software. You should be able to click and view reports as soon as you enter the money received and spend.

    Now you are ready to Tackle Your Next Step - TIME MANAGEMENT

    If you have it organized as mentioned above - it is a piece of cake.

    First task of your day is to record all your money. Why the first task of the day - because you do not like to do it and it does not make you money. 

    Well tracking money coming in and going out and tracking it MAKES YOU MONEY!

    You will see in black and white - how much someone owes you, you owe someone, your assets and loans. Not to forget your Equity in your business.

    YOU will be able to make the next deal with just looking at your Profit & Loss and Balance Sheet. 

    Got to go - my timer just went off. Break time is over. Happy Sunday!

    Gita Faust

    4Reply
  • Shayla Fletcher
    OP
    Residential Real Estate Broker · Pineville, LA · Member since 2014 · 44 posts · 23 votes
    11y
    I will give software another try but right now I am enjoying the ease of excel and some well placed filters. I know that will change when I get more properties but right now excel works pretty well for the 6 we have now. On another note, has anyone else noticed that the receipts fade away pretty quickly? I think lowes is the worst offender.
    1Reply
  • Bryan N.
    Investor · Hampton Roads, VA · Member since 2014 · 1k+ posts · 418 votes
    11y

    @Shayla Fletcher 

    They do fade quickly.  I scan them and save them by property to an external hard drive.  I back that up to Google drive and the laptop hard drive.  Then toss the originals.  HD and Lowes don't need a receipt for returns anyway.  They just need the credit card that was used and they can find it.  

    2Reply
  • Shayla Fletcher
    OP
    Residential Real Estate Broker · Pineville, LA · Member since 2014 · 44 posts · 23 votes
    11y
    Great tips Gita Faust
    0Reply
  • Richelle T.
    Rental Property Investor · Columbus, OH · Member since 2014 · 340 posts · 111 votes
    11y

    @Shayla Fletcher I don't have enough properties to justify paying for software so I use vertical rent. It's a cloud based property management and accounting program for landlord. I love it. It's better than an excel file because it generates the annual reports for you. No affiliation with the company, I'm just a happy user.

    3Reply
  • Shayla Fletcher
    OP
    Residential Real Estate Broker · Pineville, LA · Member since 2014 · 44 posts · 23 votes
    11y

    @bryanneal 

    I didn't think about scanning them. Do you use one of those devices that sorts them? 

    @richellet. 

    I am about to google that service. Thanks for the tip

    0Reply
  • Ricky A.Pro Member
    Rental Property Investor · Chapel Hill, NC · Member since 2014 · 135 posts · 112 votes
    11y

    I assume the "struggle" that you're referring to is simply the time and effort to do the BORING tasks needed to keep your books up-to-date.

    If that's correct and if there is value in having up-to-date books, there should be some value in minimizing the time and effort required to keep them updated.  Therefore, I'd really consider the suggestions @Arlan Potter and @Brie Schmidt made.  

    Although Excel is great, using a software like QuickBooks or Quicken could provide a lot of value.  The ability to link to your credit cards and bank account to automatically download new transactions is a huge time saver.  You can simply import new transactions and then quickly categorize each by account (e.g., type of expense) and class (e.g., property).

    Personally, I prefer QuickBooks to Quicken because it enforces some accounting principals that can actually help catch mistakes before you hit save.  Also, you may be able to save some money come tax time.  I have my Chart of Accounts set up to mirror the Schedule E, so come tax time, I'm handing my CPA a report with all the info in a ready-to-use format that saves him some work which saves me some money.

    My other suggestion would be to not allow yourself to watch HTGV until your books are updated. :)

    1Reply
  • Dawn BrenengenBusiness Member
    Moderator
    Real Estate Broker · Raleigh, NC · Member since 2014 · 2k+ posts · 1k+ votes
    11y

    I just wanted to chime in and agree with @Ricky A. .  Turn off the TV!  Time block, and do nothing else but focus on this task until you finish.  It will go a lot faster, and you will have way more time to enjoy the TV later.

    @Brandon Hicks I do the same thing.  I often work in my home office while my kids draw on the walls in their playroom!  Argh!

    Podcast Guest on Show #101
    3Reply
  • Bob E.
    Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes
    11y

    I enter in everything I can in Quickbooks and about every other month or so have a book keeper come in and go over any questions I have.

    0Reply
  • John Blackman
    Developer · Austin, TX · Member since 2010 · 371 posts · 284 votes
    11y

    I've gone through about 8 book keepers to find one that works, and then she left to start her own business which prevented her from taking me as a client due to a non compete clause.  Ultimately we hired someone locally to take this on.  Its hugely critical to our business.  After all if you're not watching the numbers you can easily waste a year of work by over spending or not knowing where your income is going.  Doing it yourself takes you away from your actual business.  So in my experience I would find a way to outsource it to a competent local book keeper.  The remote book keeper has not worked out for me. 

    It may work well for some folks, but it hasn't for us.  We have about 6000 - 7000 total bank entries that we manage per year in our business, so scale certainly matters.

    1Reply
  • Simon W.Business Member
    Real Estate Consultant · Lehigh Valley PA & New York City · Member since 2013 · 1k+ posts · 662 votes
    11y

    I am a Property Accountant and just started my firm accounting firm for real estate.

    The amount of transactions matter. When you focus so much on working on the accounting side you tend to sacrifice your investment side.

    I want to have a better understanding how investors like you and I, how much volume of invoices, cutting checks, balancing the books, reconcile the bank accounts, credit card, applying receipts, and the likes do you ask yourself that you need to hire someone?

    I see so many BP members focus on figuring out how to do accounting to look at Balance Sheet, Income Statement, Cash Flow, and other reports. Isn't delegating these tasks to focus on what you are actually good at part of the RE Investing Strategy?

    Excel is great, but to be using that as a main software for accounting? I think it's good when you have 1 or 2 properties.

    I agree with @John Blackman scale certainly matters.

    John, any reason why remote doesn't work for you?

    Accounting Properties LLC
    View Page
    CFO LLC
    View Page
    0Reply
  • Frank Jiang
    Investor · San Diego, CA · Member since 2014 · 592 posts · 765 votes
    11y

    Shameless self promotion:

    http://www.biggerpockets.com/files/user/SpiralLoxodrome/file/rental-property-accounting-spreadsheet

    0Reply
  • Simon W.Business Member
    Real Estate Consultant · Lehigh Valley PA & New York City · Member since 2013 · 1k+ posts · 662 votes
    11y

    @Frank Jiang  - i saw your post. i think it's good you're sharing it :) no shame in it at all!

    I haven't checked out the sheet itself, but if I recall correctly, it's more of an analyzing tool than actual day-to-day accounting report right?

    Accounting Properties LLC
    View Page
    CFO LLC
    View Page
    0Reply
  • Frank Jiang
    Investor · San Diego, CA · Member since 2014 · 592 posts · 765 votes
    11y
    Originally posted by @Simon W.:

    @Frank Jiang  - i saw your post. i think it's good you're sharing it :) no shame in it at all!

    I haven't checked out the sheet itself, but if I recall correctly, it's more of an analyzing tool than actual day-to-day accounting report right?

    I have two spreadsheets loaded into the file share.  One is a deal analysis / proforma type workbook.  The other is for recording debits and credits.  It functions similarly to quicken, where you can record debits/credits and it will build a balance sheet / income statement for you.

    0Reply
  • Simon W.Business Member
    Real Estate Consultant · Lehigh Valley PA & New York City · Member since 2013 · 1k+ posts · 662 votes
    11y

    @Frank Jiang - I'll have to check it out, but I think overall of using excel for report schedule is a bit of a hassle. 

    Accounting Properties LLC
    View Page
    CFO LLC
    View Page
    0Reply
  • Frank Jiang
    Investor · San Diego, CA · Member since 2014 · 592 posts · 765 votes
    11y
    Originally posted by @Simon W.:

    @Frank Jiang - I'll have to check it out, but I think overall of using excel for report schedule is a bit of a hassle. 

     Totally agree.  I'm just too cheap to pay for software :)

    1Reply
  • Gita FaustBusiness Member
    Accountant · Richboro - Philadelphia, PA · Member since 2008 · 901 posts · 246 votes
    11y

    Avoid fraud - self audit your books. Fraud, I have seen this happening frequently in our industry. One way is to have multiple people working on your checks, deposits, statements and file:

    - you as the owner should open the bank statements and verify the transaction

    - deposit - are they really being deposited in your account?

    - if you have someone else writing checks, use a system, that you have the ability to approve payments 

    --- one who does the data entry - bookkeeper or someone at your office

    --- one who reconciles and analyze your data for profitability and accuracy - a fractional CFO or an accountant

    BTW - if you hire an qualified person for eg an accountant and if they send their employee - how qualified are they, what experience do they have in your industry, are they certified? 

    So in the end, you should be reviewing the reports weekly if not on a daily basis. All reports should in black and white. Remember not to go in RED. 

    Do you enter the interest and principal amount as a lump sum and then at the end of the year, you may enter an adjusting entry. And do you leave it for your accountant or till tax time? 

    Do you own a car or truck in your business name, with a loan? So do you split the interest payment? 

    Think about it. 

    Gita Faust

    1Reply
  • Simon W.Business Member
    Real Estate Consultant · Lehigh Valley PA & New York City · Member since 2013 · 1k+ posts · 662 votes
    11y

    @Gita Faust  - i just read an article yesterday showing a bookkeeper stole $650K for like 10 years or something for a company. This is why you some kind of audit

    Accounting Properties LLC
    View Page
    CFO LLC
    View Page
    0Reply
  • John Blackman
    Developer · Austin, TX · Member since 2010 · 371 posts · 284 votes
    11y

    @Simon W. 

    A local book keeper can manage all of the paper from a local address.  They can run forms or last minute uh-ohs to someone who needs something that day.  Arguably you can hire a runner to do these tasks too, but there's just something about being able to sit next to your book keeper and look over the files together that is very productive.

    Like I said, I did manage to fine one out of town book keeper that worked pretty well, but I didn't want to have all of my bills sent to someone out of state.

    With a local one, I can send everything to a local PO box.  Builders and vendors can get invoices to them on a daily basis, or stop by with an invoice for a check.

    2Reply
  • Simon W.Business Member
    Real Estate Consultant · Lehigh Valley PA & New York City · Member since 2013 · 1k+ posts · 662 votes
    11y

    @John Blackman  - thanks for the response. This helps out a lot. I can use your feedback to make my company tackle these issues. I think that a cloud-storage is key.

    I used to work for a management firm and we have invoices scanned so that there is a digital copy of each invoice. Just food for thought :)

    Accounting Properties LLC
    View Page
    CFO LLC
    View Page
    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free