I file everything alphabetically. I use an accordion file. That way everything is in one place.
I have everything set up in Quickbooks for records. As an example: Under fixed assets I have an account for properties. Under properties, I have a sub acct for each one. Under each property, I have sub accounts for various depreciation purchases such as roof, refrigerator, etc. When I make a major purchase for any one property, I simply add a sub account under that property.
For expenses, I have an account called rentals. Under that, I have a sub acct for each one. When I write a check for expenses for a certain property, I attach it to that property. I can print a report that shows all expenses for that year for each property.
I like QB. It is inexpensive and easy to use. There is more to it than just tracking expenses. Got a mortgage on your rental? QB makes it easy. I have accounts set up for mortgage loans as liabilities...all set up under one master mortgage account, and on the expenses I have a master account called mortgage interest, and under that each payee. When I write checks, I credit the liability account so I know EXACTLY how much I owe any month, and debit the interest account when I write a check to each lender. This makes it super easy to 1099 them at the end of the year. I also have a manilla folder for each mortgage with an amortization schedule so I can easily look up how much of the payment goes to principal each month. This is how I know the breakdown on P&I to put into QB.
This may not be the best system...I am no bookkeeper...just what I started with and have used for years.
Investor · Bradenton, FL · Member since 2013 · 30 posts · 10 votes
8y
Checkout 123Landlord, which is what I am currently using. Definitely beats the excel spreadsheet I was using for the first 5 years - and I love my excel spreadsheets. Due to an increased number of units, I am going to switch to Buildium in the near future.