Which tool do you use to calculate net income yoy

Question

Do you use any fancy tool that you plug in your numbers to calculate your net per year ? Or Just use excel ?

I use excel , but many times I forget to add any expenses and then it messes up the calculations.

How do experienced people do it ?

Simon W. · Answer

Simple answer is Investors have people like me and many others in BP to keep the books clean as possible, usually running some form of accounting tool/platform. You can use Quickbooks, Xero, Stessa, and many other options.

Even if you aren't a property management company, you can still use platforms like AppFolio, Yardi, Buildium, and so on.

Excel makes it too easy to forget something.

Max Emory · Answer

Hey @Saurabh Kukreja, we use QuickBooks Online for all of our Clients (REIs) and I use it for my personal businesses/rentals as well.

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. That's the key component that is usually missing when I hear other entrepreneurs/investors say they don't like QBO.

Alexis Sadler · Answer

Agree with @Simon W. - using Excel makes it too easy to forget things & there's not a check & balance to ensure you did capture everything at YE.

All of our clients are utilizing QuickBooks, sometimes in tandem with Buildium or AppFolio -- but any of these platforms, when used correctly & depending on how you have your rental bank accounts/ expenses setup will be able to give you this type of reporting + the check & balance to ensure everything is recorded!

Nicole Heasley Beitenman · Answer

I'm an accountant and bookkeeper specializing in real estate. For my own portfolio, I use Wave. My clients are on Quickbooks or Stessa.

Do you have a separate bank account for your rentals?

Drew Sygit · Answer

@Saurabh Kukreja you can find a sheet someone's created & shared using this thing called, "Google".

Which tool do you use to calculate net income yoy

Which tool do you use to calculate net income yoy

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