Bookkeeping - Is Quickbooks best?

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Bookkeeping - Is Quickbooks best?

Jonathan JordanPro Member
Investor · Virginia Beach, VA · Member since 2015 · 38 posts · 11 votes

Hello all,
Writing to get some bookkeeping advice. I am looking to move up from just excel spreadsheets and it appears that Quickbooks is the most liked option. Writing to see opinions/options on bookkeeping software and for those using Quickbooks the consensus between desktop and online (and then in online which tier seems best). I do BRRR and am getting into new construction so looking for a software that can show cashflow, can track projects and project budgets, as well as that can do entity reporting. Thanks for your help!!

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Dave PoeppelmeierBusiness Member
Realtor · Maumee, OH · Member since 2015 · 491 posts · 722 votes
5y

Here's what I did: I said screw it all and hired a bookkeeper. I hated Quickbooks, it was too complicated for my non-accountant brain. I was up around 8-9 units and my wife and I didn't have time to do it. When we turned things over to the bookkeeper, she corrected many things that we were doing wrong, and come tax time she sends all of our P&L's and whatnot to our tax professional. It was SO worth the money and my sanity. Just a thought. 

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    5y

    Quickbooks: it's pretty intuitive, easy to use, has been around forever so everyone knows how to use it in case you get sick of doing your own books. It can do everything you noted, and if you sign up for a cloud version or a virtual desk version you can use it anywhere. I use it in my office.

    The only real con is that unless you're using it on a regular basis you may not want to pay the cost of it. It'll run you about a grand annual if you have the pared down version. 

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  • Scott M.
    Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
    5y

    I would agree 100% that quickbooks is the next step to go from spreadsheets and the step that most of us "older" folks in here took as well.  Then at some point you will dip your toe in the management software game.  But yes, quickbooks is the next best step from excel.  

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  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    5y

    I just use a basic property mgt software.  3 dozen units and multiple entities.

    When I BRRR, all spent before it's ready for service goes to the cost basis anyway. Keep it simple.

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  • Daniel HymanBusiness Member
    CPA · Milwaukee, WI · Member since 2016 · 2k+ posts · 1k+ votes
    5y

    Quickbooks Online is very robust. It should be able to help with all of the reporting that you are aiming to do. The desktop version is more affordable, but if you get stuck, it becomes tricky to share with a bookkeeper or tax professional. 

    The online version is where most folks are at these days, but the monthly fee should be considered. For multiple properties, you'll need the "Plus " version of QBO.

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  • Dave PoeppelmeierBusiness Member
    Realtor · Maumee, OH · Member since 2015 · 491 posts · 722 votes
    5y

    Here's what I did: I said screw it all and hired a bookkeeper. I hated Quickbooks, it was too complicated for my non-accountant brain. I was up around 8-9 units and my wife and I didn't have time to do it. When we turned things over to the bookkeeper, she corrected many things that we were doing wrong, and come tax time she sends all of our P&L's and whatnot to our tax professional. It was SO worth the money and my sanity. Just a thought. 

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  • Simon W.Business Member
    Real Estate Consultant · Lehigh Valley PA & New York City · Member since 2013 · 1k+ posts · 657 votes
    5y

    I am a Quickbooks Pro Advisor (certified) but I only got it because clients want to use QBO. I am not a real fan of QB because it isn't made for Real Estate Accounting. 

    I use my own software for some of my clients so this way there's no monthly online fee like QBO. 

    As to answer your question, QB might be the next step from excel. I highly recommend someone setting up your books if you do make the transition. Some people like to handle their own books and some just want to delegate so they can focus on what they do best, Invest.

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  • H. Louretta Dawkins
    Property Manager · North Carolina & South Carolina · Member since 2021 · 44 posts · 18 votes
    5y

    I have used Quickbooks for years and I have helped others get set up using Quickbooks.  It is very user friendly IF you have it set up properly for your business.  I have also been a bookkeeper for small businesses and agree with Dave.  If you do not have the time and patience, avoid the stress and give another small business your business.

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  • Leah Weisel
    Member since 2020 · 13 posts · 8 votes
    5y
    Originally posted by @Steve Vaughan:

    I just use a basic property mgt software.  3 dozen units and multiple entities.

    When I BRRR, all spent before it's ready for service goes to the cost basis anyway. Keep it simple.

    What software do you use?

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  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    5y
    Originally posted by @Leah Weisel:
    Originally posted by @Steve Vaughan:

    I just use a basic property mgt software.  3 dozen units and multiple entities.

    What software do you use?

    Quicken Rental Property Manager.  My version is so old it won't update anymore, but I bet more current versions are.

    I tried QB in 2013.  High learning curve and not at all RE focused.  

    I also interviewed a couple bookkeepers.  If I have to summarize and report to them I didn't see how that made anything easier.  Right now I summarize and report to the IRS anyway so I don't get what is saved I guess. It's not difficult. 

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  • Simon W.Business Member
    Real Estate Consultant · Lehigh Valley PA & New York City · Member since 2013 · 1k+ posts · 657 votes
    5y
    Originally posted by @Steve Vaughan:
    Originally posted by @Leah Weisel:
    Originally posted by @Steve Vaughan:

    I just use a basic property mgt software.  3 dozen units and multiple entities.

    What software do you use?

    Quicken Rental Property Manager.  My version is so old it won't update anymore, but I bet more current versions are.

    I tried QB in 2013.  High learning curve and not at all RE focused.  

    I also interviewed a couple bookkeepers.  If I have to summarize and report to them I didn't see how that made anything easier.  Right now I summarize and report to the IRS anyway so I don't get what is saved I guess. It's not difficult. 

    That's weird, can you elaborate by you have to summarize and report to them?

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  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    5y
    Originally posted by @Simon W.:
    Originally posted by @Steve Vaughan:

    That's weird, can you elaborate by you have to summarize and report to them?

    I guess I don't understand how else do they know what revenue and expenses to track if I don't summarize per property and type and inform them?  Revenue alone is spread across 3 banks with different methods including Venmo and Zelle, but mainly depositing directly into a bank. 

    As a lifetime DIYer, I don't understand how someone could just 'take it over'. I and I bet others could use some education there as well. 

    This week for instance I purchased a new toilet, faucet, sprinkler supplies, fertilizer and electrical stuff for 4 different properties spread across 3 entities.  Some maintenance, some repairs.    Right now I make a 'D6 R'  or 'G308 M' (for instance) on the receipt and slide it into it's properties' envelope for entry in bulk later. 

    How would having a bookkeeper help me? I'm honestly curious. Inputting the data is no problem and it's once and done. Would I not have to do the same for a bookkeeper? 

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  • Simon W.Business Member
    Real Estate Consultant · Lehigh Valley PA & New York City · Member since 2013 · 1k+ posts · 657 votes
    5y

    Honestly, if the bookkeeper is competent in real estate then you shouldn't have to summarize it by telling them where it needs to be allocated.

    You normally would give them the statements and they typically can figure it out. You would probably have to tell them the which entity/property it is for if you don't have separate bank accounts or credit cards.

    Bookkeeper helps maintaining the books and some will help with A/P and A/R. Chances are they don't understand the business.

    Accountants (nonCPA) maintain and also can analyze your financials statements, normally won't do the A/P and A/R unless there is an agreement. They will understand your business.

    CPA (accountants) will just need your financial statements and work closely with whoever is maintaining the books and make any adjustments.

    Of course, everyone does things differently.

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  • Arthur Neves
    Rental Property Investor · Orlando, FL · Member since 2017 · 56 posts · 33 votes
    5y

    I tried QBO and Stessa. Not sure I am in any side yet.

    I know my accountant likes that I use QBO, but I find harder as I have one entity per MF or portfolio of houses. So in the end I need to create different QBO accounts.

    Stessa is OK, but my accountant don’t have access and can’t use it for book keeping.

    I was wondering to use both, but that adds a lot of work for me.

    Not sure if there is a good middle ground

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  • Simon W.Business Member
    Real Estate Consultant · Lehigh Valley PA & New York City · Member since 2013 · 1k+ posts · 657 votes
    5y
    Originally posted by @Arthur Neves:

    I tried QBO and Stessa. Not sure I am in any side yet.

    I know my accountant likes that I use QBO, but I find harder as I have one entity per MF or portfolio of houses. So in the end I need to create different QBO accounts.

    Stessa is OK, but my accountant don’t have access and can’t use it for book keeping.

    I was wondering to use both, but that adds a lot of work for me.

    Not sure if there is a good middle ground

    Actually, I have a client that uses Stessa, but don't use QBO because of the cost. I just use my own software. He just gives me access to Stessa. QBO plus is the one that can use with multiple entities. I am still not a fan of QB since it's not for real estate.

    I heard Appfolio is good, but it's pricey. I haven't used it personally yet.

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  • Dan V.
    Real Estate Consultant · Norfolk, VA · Member since 2017 · 342 posts · 200 votes
    5y

    @Jonathan Jordan Quickbooks is a generic software, it can be geared toward almost any type of business. You just need to set it up, right to get the most out of it, just like any other software. I only used QB, so I'm biased. I recommend QBO Plus version for multiple properties. 

    I see you are from VA Beach. It's nice to see folks in our area! :)

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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    5y

    Quickbook’s little brother Quicken is massive overkill for 20 properties and it only costs $50. It will give me a Report of income and expenses by property, category, state, or anything else I can think up. 

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  • Michael K GallagherBusiness Member
    Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y

    I love quickbooks online, the app works very well and the milage tracking feature is fantastic.  Also loved that becuase I'm an Scorp I can run my payroll right through QBO and they file all those Payroll forms for me.  

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  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    5y
    Originally posted by @Simon W.:

    Honestly, if the bookkeeper is competent in real estate then you shouldn't have to summarize it by telling them where it needs to be allocated.

    You normally would give them the statements and they typically can figure it out. You would probably have to tell them the which entity/property it is for if you don't have separate bank accounts or credit cards.

    Thanks.  Give them what statements? Bank statements? If so I'd need to explain significant cash purchases as well as what went where and why. 

    That's what I was afraid of.  Turning it over sounds like more work that doing it myself.

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  • Dave Fridley
    Lender · Indiana and Beyond · Member since 2015 · 12 posts · 4 votes
    5y

    @Jonathan Jordan take a serious look into Zoho Books. Very similar to QBO, just more affordable. I like it and have been using for past 3 years. The only down side is that the COGS report is not available and have to export numbers into excel to get my COFS report to my CPA Once a year.

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  • Jen Davis
    Member since 2021 · 1 post · 0 votes
    5y

    This will be my first STR and a I'm a novice. I'm leaning towards REI Hub? Any objections? Thanks, Jen

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  • Simon W.Business Member
    Real Estate Consultant · Lehigh Valley PA & New York City · Member since 2013 · 1k+ posts · 657 votes
    5y
    Originally posted by @Steve Vaughan:
    Originally posted by @Simon W.:

    Honestly, if the bookkeeper is competent in real estate then you shouldn't have to summarize it by telling them where it needs to be allocated.

    You normally would give them the statements and they typically can figure it out. You would probably have to tell them the which entity/property it is for if you don't have separate bank accounts or credit cards.

    Thanks.  Give them what statements? Bank statements? If so I'd need to explain significant cash purchases as well as what went where and why. 

    That's what I was afraid of.  Turning it over sounds like more work that doing it myself.

     Again, if the bookkeeper is competent you just need to say which entity, they don't need to know why. 

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  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    5y

    @Jen Davis  one rental quick books is overkill. 

    To all those who say it is intuitive  I don't agree. I have it set up right but I just don't think the way it works.  My pet peeve is that is if  I set up invoices for rent I can't just match a downloaded bank deposit to pay that invoice.

    I use the local version and you have to update every two years or you lose capacity to download transactions which is the one thing I like.  Also sometimes for no apparent reason It will not download a transaction.  Go figure. 

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  • Sean RooksPro Member
    Rental Property Investor · High Point, NC · Member since 2017 · 272 posts · 304 votes
    5y

    If you are just looking to manage rentals, I would give a second vote for Stessa: Free, insightful and easy to use. 

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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    5y
    Originally posted by @Simon W.:
    Originally posted by @Steve Vaughan:
    Originally posted by @Simon W.:

    Honestly, if the bookkeeper is competent in real estate then you shouldn't have to summarize it by telling them where it needs to be allocated.

    You normally would give them the statements and they typically can figure it out. You would probably have to tell them the which entity/property it is for if you don't have separate bank accounts or credit cards.

    Thanks.  Give them what statements? Bank statements? If so I'd need to explain significant cash purchases as well as what went where and why. 

    That's what I was afraid of.  Turning it over sounds like more work that doing it myself.

     Again, if the bookkeeper is competent you just need to say which entity, they don't need to know why. 

    I am sorry but what Steve is describing that he is doing will be an administrative burden for ANY BOOKKEEPER. Regardless of how competent he/she is.

    What he is describing can certainly be done in Quickbooks but there would have to be consistent dialogue between the bookkeeper/client especially if he is doing it often.

    Steve would likely need to transfer the 'system' he has by coding his receipts to inputting the information to excel to give to the bookkeeper.

    Not saying that it can't be done but he has to be mindful that there will be work on his end and it is not just handing over the monthly bank statements.

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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    5y

    Quickbooks has the largest market share when it comes to accounting software.
    It has also been around a long time so your accountant will likely be familiar with it.
    He/she can help troubleshoot you with any questions when they arise. 

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