5 Properties, 3 LLCs, Quickbooks or stay with a spread sheet?

Question

We are still small, when will I know if it is time to invest in a better accounting system?  Should it be based on gross income or number of units? Thanks all.

Carl Fischer · Answer

@Daulton H.

Get QBs -easier for accountants to do your taxes, better if you get audited, better if bank wants financials, etc. I love spread sheets but switched to QBs in 2005.  QBs down loads spread sheets fairly easy but I am finally getting used to QBs reports and liking it more. I hired a part time bookkeeper to keep the books up to date.

Andy Mirza · Answer

@Daulton H. I join the others in suggesting Quickbooks. The earlier the better. Accountants use it and it's easier to provide P&L's and Balance Sheets to the few that don't. Also, it'll be easier to get through the growing pains of switching over while you're still small.

I don't recommend Quickbooks Online. You have to pay the monthly subscription service per Company you set up. Quickbooks desktop version allows as many companies as you want (or if there is a limit, it's more than enough). QBO isn't as robust as the desktop version. I went from desktop to online and back to desktop because I hated it that much. My two cents....

Account Closed · Answer

@Daulton H. Good question! QuickBooks is great. Enable classes (each property is it own class).

Also, bank feeds allow you reconcile and categorize faster and more accurately.

Dan V. · Answer

If you are planning to use remote bookkeeper or CPA, I highly recommend, QBO. It's more costly but it's very convenient for every user and more efficient if set up properly.

Andy Mirza · Answer

@Daulton H. QB allows you to create an "Accountant's Copy," which is what you send to your accountant via e-mail. They can download it, make any changes, and send you a revised copy back. Once you receive the revised copy, you upload it into your QB. It's not too difficult.

QBO (Quickbooks Online) is easier and this initially attracted me more. You give your accountant a login and they can log in directly to your account and make the changes without the whole e-mailing back and forth thing. To me, however, that convenience was outweighed by the negatives I described in my earlier post.

Daulton H. · Answer

@Andreas Mirza Thank you for the insights on QB. I do like locally held data over the cloud.   I keep seeing people mention that QB ties in with their CPA.  Is this a function or do I export the data to my CPA?

Steve Bogue · Answer

No problem. Should be plenty of videos & tutorials on youtube to show you how to use these functions.

Daulton H. · Answer

@Steve Bogue Thank you, that's the kinds of functionality I hope to have.

Steve Bogue · Answer

QBO or I would even suggest looking into Xero. Also completely web-based, I find it to be a much easier platform for someone with little/no bookkeeping or accounting knowledge.

They also have many if not all of the features that QBO has to offer including bank feeds (will automatically import transactions that hit the bank), Rules (you set a rule and when it recognizes an expense from lets say "Home Depot" it will automatically code it to "Repairs & Maintenance", and also has Classes to code transactions to the proper building.

5 Properties, 3 LLCs, Quickbooks or stay with a spread sheet?

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