QuickBooks Online for Real Estate Investor

11 Replies

Hi BP,

I have just started using QuickBooks Online.  Does anybody have a site or youtube video that describes how a real estate investor uses Quickbooks online?

For example. We do a lot of Flips...  What section do you add each Property into? Is each property a "Customer", and then you can add expenses and profit to that "Customer", named as the property address."

Looking for some Guidance with QuickBooks before I get too far into it... and figure I am doing it wrong...   Any help would be appreciated.  In that past I was just using Spreadsheets for all properties and all expenses and it took forever.. 

Thanks,

Brett

Brett:  If you are using QuickBooks Online Plus (The one for $39.00) a month it will have a Class feature for you to setup your properties into and then link your income and expenses to.  Even though the Online version has improved a great deal and has a lot of nice features now, it doesn't keep track of your fixed assets as the Desktop version does. 

I just did a Free Trial on QuickBooks Online Plus (I believe it was Plus, the one that is the most expensive anyway.  The $39 a month one) a few weeks ago, because I hadn't used it in a few years, and as I was testing it out I thought "Cool".  However, when I calculated the cost of using it for just one year ($468.00 a year) compared to just buying QuickBooks Pro  Desktop right out, for a little over $200 and it's mine for life, I have to say that it wasn't so cool to me anymore.  

Nancy Neville

We track all our individual rehab properties by class...makes it very easy to get a quick look at any property costs, to date, at any point. 

We typically have 8-10 rehabs in the cycle at any point, I do a weekly class report, and gives me a snapshot of where we are with each property at the end of every week. If anything looks off, its easy to dig deeper real quick to see the individual transactions. 

I would highly recommend having a QuickBooks accountant/ set up your initial categories and give you basic training. Then I would have him/her review on a monthly basis to make sure things are being entered correctly. After that maybe once a quarter. 

Its easy to go awry, nothing worse thenentering hundreds of transactions to find the were not entered correctly. 

Tremendous asset if you set it up right in the beginning. 

@Brett Snodgrass

As an accountant I HATE using quickbooks online. It's made to be user friendly- but not easy to utilize to dig into stuff behind the scenes the way we do. 

Using a desktop version of QB is my recommendation. There are a ton of Quikcbooks - books. But i think your best bet is to talk to your CPA have them give you a tutorial. 

I spend  a lot of time correcting things in quickbooks. There's a lot the software lets you do- but it's not really the right way to do it per accounting. The more your accountant has to change the more it costs you. Easier to pay them up front to help set you up and teach you the info you need. Just my .02  

I am a QB pro owner - 2008 version :). Still works fine for me. 

I suggest you create an account number with a bunch of the digit 9 strung together, and name it "Ask My Accountant"  - then when you come across some item where you have uncertainty, it gets labeled with that account number. When your accountant is looking at your QB files, you have those items placed into their proper account number. This gives you an easy way to track the stuff for the accountant to review. 

Hello Everyone,

QuickBooks online is great for flips but not (yet) for rental. There are many other factors to consider besides the cost.

-- Who is going to do the data entry?

-- Are all the users at the same location?

-- How many people are going to have access to it?

-- Are you going to integrate any other software?

I am taking the QuickBooks Advanced Online certification course and have spend over 40 hours training and taking the exam. You really have to know the ins and out not only how to enter in QuickBooks but accounting as well. Thanks to Intuit they are at last for qualifying and identifying their top consultants. So sorry went on and on. What I meant to say, QuickBooks online really opened my eyes to the possibilities for the real estate industry. 

If you compare the desktop vs online for the FLIP industry - it is OK to use Online version. 

As you are looking for documentation and help, please contact me. We have QuickBooks books for the real estate and property management industry and consulting.

And guys, if you are running a business, to make money you have to spend it. And we are in the real estate industry - where (almost) every one makes money.

Gita Faust

Originally posted by @Zach Mitchell :

@Dell Schlabach, Do you use Quickbooks Online Plus or the desktop Quickbooks Pro version?

 We use the desktop version based on my accountants recommendation, he is local but does a lot of work for clients with online version who are not local to him. 

Originally posted by @Steve Babiak :

I am a QB pro owner - 2008 version :). Still works fine for me. 

I suggest you create an account number with a bunch of the digit 9 strung together, and name it "Ask My Accountant"  - then when you come across some item where you have uncertainty, it gets labeled with that account number. When your accountant is looking at your QB files, you have those items placed into their proper account number. This gives you an easy way to track the stuff for the accountant to review. 

 We used that category a lot in the early stages, still do on occasion with convoluted real estate financing transactions :-)

Originally posted by @Natalie Kolodij :

@Brett Snodgrass

I spend  a lot of time correcting things in quickbooks. There's a lot the software lets you do- but it's not really the right way to do it per accounting. The more your accountant has to change the more it costs you. Easier to pay them up front to help set you up and teach you the info you need. Just my .02  

Interesting, my accountant mentioned that he is encouraging most of his investors to let his staff do all the data entry into quickbooks. Said it would take less time then it does to keep fixing the incorrect entries. Many of his rehab and investor clients, drop all reciepts once a week and they do the quickbooks entries for them. 

I have a good admin person, who does all the entries and  we  email our accountant an "accountants copy" and review quarterly with our accountant and make any needed adjustments.