I've started using Wave Accounting recently for our 2 rentals. We're looking for our third as we speak.
Curious if others have used Wave, and if so, is each rental set up as it's own business, or accounts for each expense and income per property? Trying to make things as easy as I can for our tax guy.
I do not use Wave, but typically to make things easier for your tax guy, you want to categorize expenses not only by type (repair, legal, taxes, mortgage interest, ect), but also by the property. So each property has it's own expenses categorized as things like repair, legal, taxes, mortgage, interest, etc. Some expenses might not fit into any certain property, though, such as paying for a PO Box/mail box. That might just be a miscellaneous overall expense.
Thank you Nicole
I use quickbooks and set up classes for each property per CPA instructions.
Originally posted by @Bruce C. :
Trying to make things as easy as I can for our tax guy
Good advice above to account for your transactions by property. Its actually making it easier on yourself to do so, not your tax guy.
The reason is because your tax guy would likely have no way of knowing which transaction is associated with a given property. So he would end up putting the ball back in your court. You don't want to go scrambling at tax time looking up every transaction and seeing which property it was for. Better to do so during the course of the year. It should make tax time go MUCH smoother.
I also recently switched to Wave. Lots of great features (like the price!), but I'm not 100% sold on it. I can't set up sub-accounts the way I want, which isn't a show-stopper, but it's annoying.
I am using it for a rental property and two businesses. I have set them up as individual businesses in Wave. I think I would do multiple rental properties the same way - each as its own business. That seems easier to me. The schedule of accounts would be more manageable, and the reports - which is what your tax pro wants to see - are based on the results of each business. It seems to me like it would just be easier to sort at tax time.
If someone has a better way I am following this thread, but for now that is how I am using Wave.
I have been using Wave Accounting for several years and I have 4 rental properties in it, each setup as its own business. It works well for me. You may want to review this thread where more about Wave has been discussed already.
My experience has been that Wave is great for single property (or business) ventures working on tight margins. However, as the business gets more complex, the reporting limitations and sluggish nature of Wave starts to balance out the free price tag.
Overall, I think it's a great app to start with, especially if you're new to double-entry bookkeeping, but plan on migrating to a more robust accounting system (I'd suggest Quickbooks Online) when the business begins to experience growth.
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