I Need a Bookkeeping Solution!!!

[Erik Trefzger]

I've been trying to figure out a bookkeeping solution for years now, and I just can't seem to find one.  I own 5 properties (8 units), but would like a system that could easily scale up when we purchase more properties.  I have two property managers (one locally, one out of state), so I don't need an all-in-one system that tracks vacancies etc.  I just want a simple bookkeeping solution that is easy to use and can be real estate specific.

What I've tried in the past: Excel was fine for the first few properties, but then it got too cumbersome and I'd like a more elegant solution.  I then tried QuickBooks and just hated it.  I don't want to do double-entry accounting, and it was annoying setting it up with classes, jobs, etc to try to get it to fit real estate.  I then tried a local bookkeeper but she was quite expensive and it still required me to do a lot of work myself.  The following year I outsourced the bookkeeping to someone in New Jersey for only $100/month, but the results were very poor; he just lumped everything together and didn't even separate the properties income/expenses/etc.  It also seemed like I was still doing too much work.  

One thing I learned from trying to outsource my bookkeeping is that I have to understand how to do it before I try to hand it off to someone else.  I want to hand the books off after I find a solution and can do it myself (since bookkeeping is my least favorite part of this business), but there has to be a simple system for someone like me.  

So here's my wishlist, does anyone know if anything out there comes close?

- Cloud based (ideal but not necessary)

- Easy to use

- Separate expense/income tracking for individual properties

- Generate reports for all properties as well as individual properties 

- Import from bank accounts, although I would need to manually separate those transactions.  For example, I get paid a couple of lump sums from my property managers every month, and one $5000 payment might represent 4 rent payments and 9 different expenses

- Separate mortgage payments into principal/interest/escrow transactions

- Track escrow payments from mortgage companies and escrow balance (ideal but not necessary)

I'm looking at freshbooks, Xero, and Wave, but if anyone has experience with this let me know!  I don't need an all-in-one solution, just a way to track what my property manager sends me!

[Jonathan Key]

Great question, great thread! I can't wait to see how this one turns out.

I am wanting to know the same thing, but mine opinion is skewed as well. Intuit lost me this year as a customer at tax time, so I am wondering if I decide to use QB as my software if I will be stuck at tax time. I hope not....

@Erik Trefzger Thanks for posing the question!