We will acquire about 3 rentals this year and we plan to flip 2-3 SFHs also.
Is Quickbooks a 'requirement' to keep everything tidy for the CPA or can it be done in a spreadsheet just as well?
Any links to good Excel spreadsheets that we could use?
People have given their CPA's their stuff in a shoe box.
However, keep this in mind. Your CPA charges by the hour. The more organized your data, the less you have to pay your Accountant to do your taxes.
So no, QBS is not a requirement. QuickBooks helps you more so than your accountant.
Thanks Nancy. I was all set to go on QB Pro 2015 until I read all of the negative reviews on Amazon. Also, the built in obsolescence which creates a residual income stream for Intuit is a little bit off-putting for a small business person. Shoot, I have one old netbook still running Office 2003 and it all works fine :)
@Nancy Neville , I think any CPA will tell you that clean records from any source (Excel, Quickbooks, Quicken, etc.) are the best type. I recommend that you meet with a CPA prior to beginning the purchase process. Not only will you get advice on how to keep clean books, but you will also get business entity structuring advice(or if you even need a business entity) as well as tax planning advice that should pay dividends in the future.
Best of luck and happy new year!
You are an Honorable man Jake Hottenrott! :)
Thanks @Nancy Neville and @Nancy Neville.
My CPA did recommend it and he teaches a monthly training course on how to use Quickbooks for REI. I'm just being cheap, I suppose.
@Kelley B. It doesn't matter, as long as everything is totaled and separated, and you have the numbers for the basis. QuickBooks will help you to do the bookkeeping more quickly if you have several properties. In any case, being able to generate a P&L and Balance Sheet will make potential lenders happy as well.
@Kelley B. On one hand you may not need it all, but on the other hand, better to cut your teeth on it before your business gets too complicated. It really does help keep things in order and allow you to get an accurate view of how you are doing. I recommend you go for it.
I use Excel to do my books for my five rentals and parent's three. I can print off a nice summary sheet with exactly what their CPA needs for each property in addition to the three Excel files. I just copy and paste my stuff into TurboTax currently.
All good points. Thanks.
@Nancy Neville (or anybody that knows), do you know if Quickbooks allow you to load one copy on a desktop and then also run a copy on a laptop?
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