BRRRR Investor Chart of Accounts for QuickBooks

General Landlording & Rental Properties
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BRRRR Investor Chart of Accounts for QuickBooks

Bryant TroupePro Member
Investor · Rocklin, CA · Member since 2019 · 20 posts · 11 votes

We primarily BRRRR investor who purchased our first property last year. We are hoping to add 2 - 3 this year. I need to get all my financial data into QuickBooks and was wondering if anyone could offer advice on the required chart of accounts. The default real estate business chart of accounts from QuickBooks didn't have the accounts I'd like to see. I'm planning to outsource the bookkeeping once the QB file is setup. I'll also have my accountant review the final chart but looking for investor experience on high-level reporting that they get from QuickBooks.

Here's my preliminary chart of accounts.

Account Name Account Type
Property Sales Income Income
Rental Income Income
Interest Income Income
Security Deposit Income Income
Property Sales Expense Expense
Acquisition Expense Expense
Rehab Expense Expense
Property Management Expense
Insurance Expense
Property Taxes Expense
Marketing Expense
Training Expense
Utilities Expense
General Business Expense Expense
Legal Expense
Interest Expense Expense
Banking Expense Expense
Licensing Expense Expense
Security Deposit Refunds Expense
Maintenance & Repairs Expense
Depreciation Expense
Capital Contribution Equity
Owner Distribution Equity

Thanks in advance for your ideas and suggestions.

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  • Frank Chin
    Investor · Bayside, NY · Member since 2017 · 1k+ posts · 1k+ votes
    5y

    @Bryant Troupe

    Just a few general comments and observations.

    I now now have my books on QuickBooks since 2002, my 3rd generation of bookkeeping, after using 2 other accounting software before it.

    If you are mainly doing rentals, just do the chart of accounts in accordance to that of the "Schedule E". Prior to doing so, I have to map my expense items in the chart of accounts, to those in the schedule E at tax time. I always wind up doing taxes at the last minute and it cuts down on a lot of work for me.

    Security paid and refunded is not an "income" and "expense". It is a s deposit to a Security Liability and withdrawal to security account. So it's a credit to the Security account when payment received and debit when refunded.

    You can use sub accounts within Quickbooks. So I use water, gas, electric as sub accounts under Utilities. And under "other", I have a good 8 or 10 items, such as licensing, training, banking fees etc if I want to keep track of those.

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  • John T.
    Rental Property Investor · Central U. S. A. · Member since 2013 · 296 posts · 149 votes
    5y

    Buy "Real Estate Investor's Guide to QuickBooks 2019" by Karen Mitchell.  Its published by Online Accounting.  Just Google it. 

    This is an excellent book.  It explains everything you need to do to set up the QuickBooks for your rental business.  It has everything from set up, chart of accounts and how to record transactions.  Its been invaluable to me.  I'm still using the 2010-2012 version of the book.  

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