Jacksonville Beach, FL · Member since 2015 · 115 posts · 19 votes
As I am getting started in real estate investing, I want to make sure not to be trying to play "catch-up" starting on day one with keeping my books up-to-date. Quickbooks Pro is used in just about every industry; I am wondering if it is also recommended in REI, or if there are other programs that are recommended...
I am just looking for some quick feedback from individuals that are keeping their books updated that may have some wisdom in this area.
@Alex Sanfilippo - Assuming you are talking about rental, not flip...
If you are just starting out, I would say Excel is enough. In order to use QuickBooks, obviously you have to buy it (you have to buy Excel, too, but most people already have one.) Also, it'll be very difficult to use without buying a manual book specifically designed for the landlords. Those will usually cost $100 or more.
If you are interested, I'll be more than happy to share the Excel spreadsheet I've been using. It shows things that QuickBooks can't show, like vacancy rate graph.
If you are holding all your properties in your own name, then one "property" bank checking account should be sufficient for your rental income and operating expenses. A separate escrow account for security deposits is also required by law in most states.
I have multiple properties in multiple states, and I find Quicken Rental Property Manager adequate for my accounting needs, plus it exports directly to TurboTax. Income and expenses can be tagged to the appropriate property to provide property specific cash flow reports. Quicken Rental Property Manager is ready to go without tweaking and is available in a desktop version.
If you are considering holding your properties in one or more LLCs, then use a separate checking account for each LLC.
@Soh Tanaka Hi Soh, would you mind letting me take a look at your excel spreadsheet please? I'm trying to figure out the best way to track things as I am just closing on my first property this month. Thank you.
@Alex Sanfilippo - Assuming you are talking about rental, not flip...
If you are just starting out, I would say Excel is enough. In order to use QuickBooks, obviously you have to buy it (you have to buy Excel, too, but most people already have one.) Also, it'll be very difficult to use without buying a manual book specifically designed for the landlords. Those will usually cost $100 or more.
If you are interested, I'll be more than happy to share the Excel spreadsheet I've been using. It shows things that QuickBooks can't show, like vacancy rate graph.