Accounting, Taxes and Productivity

7 Replies

My wife and I just went under contract on property number 6 and we have put an offer for property number 7. I currently track all of our rental finances with spreadsheets. It’s was perfect when we were smaller but now it is becoming a little cumbersome. I am looking for something that can track all real estate finances and make tax time a breeze. Even better if it has an app so I or my wife can scan the receipt right away instead of waiting till we get home and run the chance of losing the receipt.

What are your favorites and why are they your favorites. How is it for growth long term? Thanks for your wisdom BP family. We wish you all continued success!

Originally posted by @Shawn Morrow :

My wife and I just went under contract on property number 6 and we have put an offer for property number 7. I currently track all of our rental finances with spreadsheets. It’s was perfect when we were smaller but now it is becoming a little cumbersome. I am looking for something that can track all real estate finances and make tax time a breeze. Even better if it has an app so I or my wife can scan the receipt right away instead of waiting till we get home and run the chance of losing the receipt.

What are your favorites and why are they your favorites. How is it for growth long term? Thanks for your wisdom BP family. We wish you all continued success!

I get requests from clients to recreate their financials for the last few years because they are trying to sell their portfolio, or bring in investors, or get portfolio loans. That would be costly. What every investor should do is this: 

- Get Quickbooks online and create financial every year. It also helps with receipt management. This can be automated. 

- This not only helps you with your bookkeeping, but your CPA is going to charge you less during tax time

- And, you don't have to pay the insane amounts when you need to recreate the financials. 

I have many more than 7 I track with Excel. If you create formulas and some intelligence it is not cumbersome to use at all. Very powerful and customizable.

Quicken Rental property Manager has worked well for me over the years for current year rental income/exp and tenant management. 

My version doesn't track cost basis but that is easy. it also doesn't let me scan receipts but newer versions probably have a lot more modern capabilities than mine.  QRM is simple, inexpensive and worth a look.

@Shawn Morrow

Rentalhero works good for me managing 10 properties

It's priced well.

During tax season it can produce a report per property or all of them as a summary report .

I like it so far, been using it for a year now.

100% agree with @Ashish Acharya . At that point, you should be able to afford Quickbooks Online. Further, you can attach all receipts for specific expenses. You can also set up bank feeds as well. If you own the properties with no partners, I'd recommend just setting up classes. 

@Shawn Morrow

Excel can be great to track your income & expenses when you are first starting out.

However, I find it that the accounting softwares are better when you have a handful of properties.

My top recommendations for accounting softwares are
1) Quickbooks(Desktop)
2) Quickbooks(Online)
3) Xero
4) Stessa

Best of luck