Setting up chart of accounts in buildium

General Landlording & Rental Properties
3yFollow

Setting up chart of accounts in buildium

Ben Russell
Member since 2023 · 50 posts · 41 votes

Hi,

Expanding into PM from RE and will be using Buildium.  I am trying to set the chart of accounts up so I can run the books for both the RE and PM side of the business through Buildium.  For those that are doing this (or something similar), what is the best option:

1-Use general accounts as parent accounts, and then set up a subaccount for both the PM and RE side.  

Example:  

Advertising Expense (parent account)

-Advertising PM (sub account)

-Advertising RE (sub account)

2- Or, set up 2 parent accounts as PM and RE, and then build out the subaccounts under those two parent accounts.  I think this option would be the most logical, but what I don't like is that you can only use 1 subaccount.  For example, Advertising could not have additional subcategories of Print and Digital Advertising.

Thanks for the advise.

Ben 

0Reply
101 views

5 Replies

Jump to latestLatest
  • Simon W.Business Member
    Real Estate Consultant · Lehigh Valley PA & New York City · Member since 2013 · 1k+ posts · 668 votes
    3y

    Having double codes is an accountant's nightmare. I get why it is done, but just have it set as regular. Build out your Property Groups to differentiate what are properties are from the PM side.

    Accounting Properties LLC
    View Page
    CFO LLC
    View Page
    0Reply
  • Will Fraser
    Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
    3y

    Thanks for sharing this perspective, @Simon W.!

    0Reply
  • Simon W.Business Member
    Real Estate Consultant · Lehigh Valley PA & New York City · Member since 2013 · 1k+ posts · 668 votes
    3y
    Quote from @Will Fraser:

    Thanks for sharing this perspective, @Simon W.!


    You're very welcome.

    Accounting Properties LLC
    View Page
    CFO LLC
    View Page
    0Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    3y
    Quote from @Ben Russell:

    Hi,

    Expanding into PM from RE and will be using Buildium.  I am trying to set the chart of accounts up so I can run the books for both the RE and PM side of the business through Buildium.  For those that are doing this (or something similar), what is the best option:

    1-Use general accounts as parent accounts, and then set up a subaccount for both the PM and RE side.  

    Example:  

    Advertising Expense (parent account)

    -Advertising PM (sub account)

    -Advertising RE (sub account)

    2- Or, set up 2 parent accounts as PM and RE, and then build out the subaccounts under those two parent accounts.  I think this option would be the most logical, but what I don't like is that you can only use 1 subaccount.  For example, Advertising could not have additional subcategories of Print and Digital Advertising.

    Thanks for the advise.

    Ben 

     It depends on what you want to see on your budgets. 

    Are the items going in so many that splitting them into two groups makes sense.

    Is there only one vendor and you will split the cost 60/40 or something like that.

    Do you need that level of detail to make intelligent decisions when budgeting or (analyzing something after the fact).

    KISS, in other words keep it simple if you can. One vendor check to XYZ a year for Service Q, 50% to one and 50% to another, do you really need to see that broken out--maybe yes, maybe no.

    Just my 2 cents.

    0Reply
  • Timmi Ryerson
    Property Manager · Ketchum, ID · Member since 2016 · 277 posts · 132 votes
    3y

    Your chart of accounts should be set up to collect data.  Your properties should be set up in portfolios.  I do not use Buildium.  I use a different software but if there is a portfolio available set your re up in one portfolio and your PM in the other.  Then pull reports based on the query you are looking for.  I am not an accountant but I cannot imagine having 3 each of the same account name.  It may break the system.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free