Bookkeeping software mgt
Hello, I'm looking for bookkeeping software that works with my real estate business and can work with my personal rental properties. Any recommendations?
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What do you need the software to do for you? For example, do you need the software to collect tenant payments or are you looking for something to track depreciation expenses?
#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
Work with your CPA on that. That way as you grown and if you need someone to take over that part of the business, maybe they can slot right in.
Quickbooks seems to be the #1 recommendation, but I'm sure there are others.
The QuickBooks Online Plus subscription could be a great option for you. You can use the Business field to separate between your real estate agent business and your investing business. Then use the Class field for each of your rental properties and a general real estate agent class.
That way you can run separate reports for each business and by rental property.
- Kristen Ambrose
- [email protected]
What do you need the software to do for you? For example, do you need the software to collect tenant payments or are you looking for something to track depreciation expenses?
#1 Medium-Term Rentals Contributor
- Lender
- Asheville, NC
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#1 Medium-Term Rentals Contributor
- Lender
- Asheville, NC
Yes, I highly recommend you check out Baselane! I love it because it's made by real estate investors FOR real estate investors so you get everything you need to manage your property finances and nothing you don't need. I wish it would have been around years ago when we started investing. I used to use Quickbooks but it's clunky and overkill IMO. Even our bookkeeper was impressed with Baselane and she's the one who used to maintain QB for us! I am using it to manage finances for my long term rentals, midterm and one short term rental so it's very compatible with most portfolios. It's very intuitive and has key functions that I really needed like the ability to quickly categorize transactions into categories that sync with your Schedule E for tax time, the ability to set up accounts for each property and sub accounts for specific things related to each property. I love the virtual credit card option as well, which makes tracking expenses so much easier. These are just some of the great features Baselane offers. I recommend you attend a free product demo webinar so you can see if it's right for you.
Quickbooks is the market share leader when it comes to accounting / bookkeeping.
The reason this can be considered important is that if you need an accountant to review, make corrections, transfer the accounting to a third-party, it would be easiest with quickbooks.
The desktop version will be more affordable than the online version.
Best of luck.
- Basit Siddiqi
- [email protected]
- 917-280-8544
@Brent Logsdon, we use QuickBooks Online exclusively for all of our agent/REI Clients. We've found it has superior reporting features, integration features, and is overall more efficient to work within than other REI-specific software.
The downside is QBO is not set up for REI so you'll need to do that or work with an expert to ensure it is set up for your business appropriately.
Something else to keep in mind is your entity structure and how your entities file tax returns. As a general rule, each entity that files a separate tax return (partnership, s-corp, c-corp, etc) will need its own QBO subscription. If entities are disregarded/passthrough, you can keep up with more than 1 in a single QBO account using the location/business feature to keep track of them separately.
If you want to discuss any of this further, I'm happy to answer questions and help walk you through it.
Best of luck!
#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Flipper/Rehabber
- San Diego, CA
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#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Flipper/Rehabber
- San Diego, CA
I use QuickBooks Online for most of my clients. For most real estate investors, a Plus subscription is needed in order to have separate by class(property). It is the most popular software in the industry and all CPAs know how to navigate it which is nice.
At the bare minimum, you should do the following to make your bookkeeping easier:
1 Dedicate one checking account and credit card exclusively to real estate. Keep personal and business finances separate. This alone will create less headache.
2 File all receipts in a dedicated Google Drive folder. Digitize physical receipts for easy storage. Use a consistent naming convention - ex. 2024.03.25 Home Depot
3 Maintain proper records - Contracts, Settlement Statements, Agreements, Promissory Notes etc.
- Jake Baker
- [email protected]
