Quickbooks - 1 Rental-Owned in own name vs LLC - Does it matter

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Quickbooks - 1 Rental-Owned in own name vs LLC - Does it matter

Pat L.
Real Estate Investor · Bergen County, NJ · Member since 2014 · 56 posts · 5 votes

I'm both a Quicken user (need to upgrade soon) and a Quickbooks user.

We recently purchased our first cash flowing property. If I were putting in an LLC, no question, I would use Quickbooks. But since we currently own it in own name, would you opt for Quicken or something else? Or would you use Quickbooks anyway? I only use Quickbooks for my tiny businesses - not our personal finances.

Thanks!

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Gita FaustBusiness Member
Accountant · Richboro - Philadelphia, PA · Member since 2008 · 901 posts · 246 votes
7y

Are you using QuickBooks Desktop or Online version? If you are using Pro, Premier or Accountant, use it for your rentals. 

Even though you have one property start using Class feature from the getgo.

You can do more with QuickBooks than with Quicken.

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  • Brian G.
    Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    7y

    @Pat L. it’s not necessary however if you are already use to it, it might make sense. Not sure what format your CPA wants your stuff in for tax purposes. I’ve done my own taxes for years and literally have used pen/paper to track my income/expenses. Most important thing is to open a separate checking/savings account for the rental to isolate the activity and make it easier come tax time, etc.

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  • Gita FaustBusiness Member
    Accountant · Richboro - Philadelphia, PA · Member since 2008 · 901 posts · 246 votes
    7y

    Are you using QuickBooks Desktop or Online version? If you are using Pro, Premier or Accountant, use it for your rentals. 

    Even though you have one property start using Class feature from the getgo.

    You can do more with QuickBooks than with Quicken.

    1Reply
  • Hideyuki Gojima
    Rental Property Investor · Long Island City, NY · Member since 2018 · 82 posts · 18 votes
    7y

    When it comes to bookkeeping your properties, I think it depends on how much you can spend your time on managing your property.  As @Brian G. said, you can totally manage everything with excel if its only a few properties. 

    A lot of my friends still use excel to manage their properties. 

    If you are using two softwares, wouldn't it be better to use only one software to manage both properties? The later the harder as more data are stored in the software. I think it is better to consolidate into one of them, whichever you feel useful. 

    Also there are many new softwares that are focused on independent real estate managers nowadays from rent online payment system to property management software that also takes care of accounting matters.

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  • William Battistelli
    Investor · NJ · Member since 2018 · 39 posts · 33 votes
    7y

    Is this just for tax purposes, or to keep track of your financial picture?  I personally use emoney (similar to mint, but more features) to track everything as it allows me separate my side business and rental property from all my personal assets as well as to set ownership percentages for them since I work with a partner.

    If you want more info about accessing emoney, feel free to reach out.

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  • Natalie KolodijBusiness Member
    Moderator
    Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
    7y

    Fun Fact: Your LLC is required to have it's own books to keep from breaking any sort of corporate veil.

    So If you want to use a software I would use QB- Just make sure it's kept separate from any personal books. 

    Podcast Guest on Show Pay Less Tax to the IRS This Year With THESE Real Estate Tax Strategies
    Kolodij Tax & Consulting
    WebsiteView Page
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  • Melissa Ward
    Specialist · Middle Grove, NY · Member since 2016 · 57 posts · 12 votes
    7y

    As a small landlord, you have some specific needs in book keeping.  Using a low cost property management system will give you those specifics.  On top of book keeping, good software will also help you stay organized, store documents, collect rent online and help you to stay in communication with your tenants and vendors.  All with one simple log in.  Start now and you will have a system that grows with your business.  

    One system with all your P&L's and Rent Roll that makes your life easier!

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  • Pat L.
    OP
    Real Estate Investor · Bergen County, NJ · Member since 2014 · 56 posts · 5 votes
    7y

    Thank you to everyone for your responses -- I greatly appreciate it!

    Gita - I'm using the QuickBooks Desktop. Yes, agree, I will definitely use the class feature.

    William - I'll be tracking my financial picture and sending the financial information to my tax preparer.

    Brian and Natalie - Yes, Ill be sure to keep everything separate.

    Thanks again everyone!

    Pat

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