I have 22 units, 3 multi-units and 8 condos that I own personally (no other investors). I have so far been managing accounting wise with a combination of mint.com, excel, and turbotax. I would say my biggest weakness is definitely on the bookkeeping side. Given that I don't have these big buildings I don't have separate bank accounts for all the entities, I just have the one.
I've seen a lot of recommendations about using quickbooks desktop for landlord activities, but knowing myself I know do better with online platforms.
Can anyone offer any insight into which quickbooks online program would be best?
We use QuickBooks Premier. I have thought about online but for us with 4 different companies, it is too expensive. One thing is that you need automatic invoicing and billing. Eliminates a lot of entries. All rent posted at once.
We use QB Online essentials. I like it, but am not in love with it. I prefer Quicken Rental Property Manager which I use for my self managed properties. We use QB online for my out of state properties as my PM and I both need access and the ability to update in real time and we can't do that with the software version.
I like that QB Online updates direct from my bank and then I just tag and categorize the transactions. I am not a big fan of the reports as I can only pull P&L reports for the entire portfolio, not individual buildings. For that I need to pull a expense report by building and then an income report by building and merge the files. But I can easily pull an income report by tenant and see who has paid rent.
Yes I am very attracted to the online syncing with bank accounts. How does essentials handle the depreciation of new improvements, remodel, appliances, etc?
When I spoke to quickbooks sale staff via chat they were pushing me towards the plus.
I really dont have any employees, all work I do is through contractors.
From what I know QB online does nothing with depreciation. I added a separate category for "improvements" so at the end of the year I can see what can be depreciated.
I wouldn't use QB online unless I had to have two people access it in real time. I prefer Quicken RPM hands down
I have my clients using QB Online Plus as it provides more functionality. I like QBO vs. the desktop version as it makes sharing data and requests much easier. QBO is also seeing improvements to the system all the time.
Do you have a CPA? If so, you will want to see if he/she is using QBO and can wholesale you the version you need. Intuit allows me to wholesale QBO Plus for about $15 per month to my clients.
*Edit: for the record, you can book depreciation in QBO. It's an accounting platform after all.
Brandon, from your experience can the plus version handle depreciation?
Brandon it seems like you are familiar with both the RPM and QBO Plus, do you have a recommendation between the two?
My goal is more bookkeeping/organizing/sorting improvements and tracking depreciation vs keeping track of income. All my tenants pay their rent electronically and my recurring expenses are automated.
I more need a bookkeeping tool for example the 55k YTD in purchases I've made at Lowe's/Home depot/amazon and like the other 45k I will make before yr end.
Let me know what you think?
Do not use Quick Books. There are many online programs such as Buildium that provide much better reporting functions than QB when it comes to property management. Nothing wrong with QB just that it is not as good as programs specifically design for Property Management. What QB does is provide you financial reporting but very poor property management functions such as lease maintenance, work orders, ect.. For the same cost, go with a program designed just for property management and get both the financial controls and the property level reporting. makes life a whole lot easier.
Originally posted by @Brie Schmidt :
Brie, QuickBooks Online is a challenge in reporting only if you do not know the ins and outs of the software.
Try this - Pull a Profit & Loss by Class and then Customize the Class with the property report you want. Change the Header and Footer and Save it for future.
Do the same with Balance Sheet.
Depreciation - There are two way to handle them.
- You calculate them and record the transaction OR
- Have your accounting software calculate and enter it automatically
If you are using QuickBooks and want it to calculate for you - you will have to purchase Accountant version. Which has an Asset Management module included.