Hi BP - in the process of purchasing my first AirBnb in Nashville, TN. Do you find it's easiest to keep a Google doc or excel sheet with expenses? Or does anyone recommend some app that helps track expenses, income, etc? There has to be something out there created for this!
I use Excel for all my real estate tracking.
Ditto to what John said...My wife is queen of the excel tracking spreadsheet. We also just signed up for Stessa a last month and i've been pulling in expenses and rent from our properties in there. So far I'm liking what I see and maybe it will make it easier when it comes to tax time again.
The real trick is a dedicated checking account and credit card for your expenses and rental income. That makes everything SO much easier. From there, you can link those accounts to free tools like Mint or Wave Accounting (depending how complex you want to get, Mint is usually fine) and it will feed your transactions directly there and you simply go in and and categorize your expenses/income weekly, monthly etc. and at the end of the year you should have a nice clean report out for your CPA or Turbo Tax.
Best of luck.
I use quickbooks for accounting. I keep hearing stessa, what's the advantage?
Thank you @Jon Crosby !
Also using Stessa for my STR's. It's free (for now) and does a good job.
I would suggest doing yourself a favor and starting with Quickbooks off the bat. If you get into real estate investing for the long haul your life will be so much easier. I would suggest looking around for an accountant to help you set up your company file and show you around QuickBooks. I did this many years ago, did a one-time session with someone, I think I paid around $200.
Where did you buy your bnb? Are you self managing?
ditto on what @Jon Crosby said. Only additional advice I would add is to take a picture of every receipt with your iphone. Make a Photos folder for them to store and you can throw away the paper copy then.
@Paige Hill if I have to manually enter anything I’m wasting time. I’ve always synced transactions
to custom tagging and Schedule E categories to allow for easy export and reporting come tax time.
Using Stessa now, which is basically QuickBooks Light with our or the box investment metrics and visuals for free.
@Paige Hill since you are using a management company, ask them for a sample monthly statement and see what you want to track, and how.
Excel or Google Docs should be more than sufficient for this, since the management company should be doing the heavy lifting here.
This is what I think we are moving toward for each of our investments. Breaking it all out at the end of the year or tracking which expenses go where is getting to be a pain. And I like the idea of a dedicated credit card or line per property or business.