Bookkeeping Q&A for a New Real Estate Investor - Software

4 Replies

This is probably the #1 question I’m asked by real estate investors and I’m honestly still testing a few different software. But, as of right now, QuickBooks Online is what I recommend to most people.

Yes, you are only allotted up to 40 classes within one subscription which some use to track each individual property. So, that is something to keep in mind. But, overall I’ve found QBO to be a great option!

What software have you small business owners and investors had great experiences with for bookkeeping?

__________________________

@Max Emory, same here. I started using QBO a couple years ago and hired a bookkeeper through a gig website to set it up and kept them on to do my monthly bookkeeping as well.

Its worked out really well. It has made getting at the information I need to do income taxes, provide lenders when getting loans, and evaluating performance of each property SOOOOO much easier!

The other sort of related move I made was implementing a "profit first" cash management strategy. It has helped me be able to see my cash position and be able to see that I am positioned to not only pay the bills but able to pay myself!

https://www.amazon.com/Profit-...

Promotion
BiggerPockets
The one-stop-shop for REI
Find Local Home Improvement Pros!
Check out our network of trusted, local contractors for all of your home improvement projects.
Find a Contractor

@Max Emory, I do BRRRR. So, in addition to my rentals I also rehab distressed properties and refi them out. So, I developed a separate set of percentages etc to also include the BRRRR side of things into profit first as well.

It has made things so much simpler to manage and especially to see how I can pay myself. 

@Kevin Sobilo, wow! That's amazing. I have not done that so that's definitely something I'll work on for my own BRRRRs and maybe introduce that system to my real estate investing bookkeeping clients. The simpler and more systematized the better!