Hey BP community!
Recently did my first deal on an out-of-state duplex and I want to ensure I'm keeping track of all of the financials to remain organized and ready for tax season each year. Also want to be able to see how well a property is/isn't performing at a glance. I took a look at QuickBooks but before starting a monthly subscription I wanted to scan the community to see what has worked best for you guys/gals! Has it been creating and maintaining your own excel spreadsheets or using another 3rd party system similar to Quick Books? As always, any help/advice would be greatly appreciated. Thanks in advance!
Congratulations on your deal.
I sent you a software recommendation by PM.
For one property, a QBO subscription may be overkill...unless you are looking to scale up rapidly, in which case it pays to develop good bookkeeping habits early on.
If you are looking to keep the portfolio size at 1-2 properties, then a spreadsheet should suffice.
Congrats on the first deal!
If you haven't already done so, I would open up a separate bank account just for your real estate related activities.
This will make it easier at the end of the year to determine what is personal and what is business related expense.
In regards to categorizing the income/expense items, I think something as simple as excel should suffice.
If this is the beginning, then start with QuickBooks, which can grow as you acquire more properties:
- QuickBooks Desktop - start with Pro. With Premier and Enterprise, you can view the Balance Sheet by Property. Not a subscription
- QuickBooks Online - start with Simple Start version and after you acquire the second property, you can upgrade to Plus version. Subscription, if you do pay annually to save $$.
Check out the BiggerPockets Pro benefits.