Real Estate Agent · Belmar, NJ · Member since 2017 · 370 posts · 200 votes
Hi All,
I am curious what you all are using to automate your bookkeeping?
I am currently doing my own spreadsheets but would like to have automated as I plan to scale to more properties and use a dedicated checking account for my HELOC. All input is welcomed. Thanks!
@Cody Z..- Exactly- you create properties first, then link your bank accounts to get a transaction feed, and then you 'book' those transactions by applying the right property and expense account (or whatever type of transaction). For overhead transactions that apply to your whole rental business, you leave the property field blank to book it to the Portfolio level (can be prorated among your properties from there).
@Allen Meringolo- REI Hub differs from Stessa in a few ways. The biggest/most visible differences are that 1) REI Hub is double-entry accounting software (like QuickBooks, Xero, etc.), and Stessa is single-entry (similar to a spreadsheet). Double-entry accounting is needed to create a true Balance Sheet that tracks items like your basis and accumulated depreciation. 2) REI Hub is very customer service oriented- we offer onboarding calls to everyone who signs up for a free trial and provide ongoing phone and email support. 3) REI Hub is a paid subscription (30 day free trial), while Stessa is free.
Seriously though, I actually like reviewing transactions, we learn so much more about what’s happening behind the “financial scenes”.
I just told her last week, I want to use quick books for our personal accounts starting January for the same reason. Easy to catch things when you have to file each transaction away somewhere.
We recommend using Divvy. Its a credit card system that links to an app so that you can assign credit cards to each employee with limits. That way everyone that spends money gets a notification on their app which reminds them to take a picture of the receipt and categorize it immediately. My partner raves about them and they are great if you're looking to scale. It links right into Quickbooks. Message me if you decide to use them because we get a referral fee if you decide to use them.
Thanks all for the input - I've never set one up before but I imagine you can create properties and track from that perspective plus the overall rental business (ex. some expenses get allocated amongst multiple properties)?
@Allen Meringolo I like that it’s free, can upload all my documents and receipts, app is user friendly for the most part, and already has a lot of accounting categories pre-set up.
@Cody Z..- Exactly- you create properties first, then link your bank accounts to get a transaction feed, and then you 'book' those transactions by applying the right property and expense account (or whatever type of transaction). For overhead transactions that apply to your whole rental business, you leave the property field blank to book it to the Portfolio level (can be prorated among your properties from there).
@Allen Meringolo- REI Hub differs from Stessa in a few ways. The biggest/most visible differences are that 1) REI Hub is double-entry accounting software (like QuickBooks, Xero, etc.), and Stessa is single-entry (similar to a spreadsheet). Double-entry accounting is needed to create a true Balance Sheet that tracks items like your basis and accumulated depreciation. 2) REI Hub is very customer service oriented- we offer onboarding calls to everyone who signs up for a free trial and provide ongoing phone and email support. 3) REI Hub is a paid subscription (30 day free trial), while Stessa is free.
We make use of quickbooks. It has worked amazing so far for our 7 properties. We can automate invoices that can be sent and reminders too. Tenants can pay via bank or CC and recently we started adding zelle custom message.
It also connects with our banks and tenant escrow accounts.
I recently began using REI Hub. So far so good. Wanted something cheaper than Quickbooks and specifically geared to real estate bookkeeping. More powerful than Stessa.
I use Bench accounting for all 3 of my companies! Been using them for years. You sync your accounts/credit cards etc and they categorize every transaction for you and give you the option of using them to file or send reports to your CPA at the end of the year. They are really affordable also running between $135-170/mo/company and you get discounts if you use for multiple businesses. Disclaimer: I haven't used them for rental property style businesses yet.
I am curious what you all are using to automate your bookkeeping?
I am currently doing my own spreadsheets but would like to have automated as I plan to scale to more properties and use a dedicated checking account for my HELOC. All input is welcomed. Thanks!
Quickbooks online. I'd pay to have a bookkeeper help you get set up, then it's easy. It's also easy by the end of the year to get your taxes done if you have clean books.
Oh... customer service? I asked for a referral to help transition form QB to REI hub and there response was let them help 1st then see if I need outside help!! Impressive.
One is personal and the other is business. I just switched to REI Hub which is specifically for rental properties and love it!! QuickBooks is to generic for me. Also expensive
I’m not 100 percent sure. I know you can link your bank account or upload csv file and then attach receipt to a transaction. Hope that makes sense. I say reach out to them, they’ve been very good at responding and will schedule phone call with you