Accounting Software

[Chris Pomerleau]

Hello. Rookie BP investor here. My father and I own a rental property business with three rentals. We are expanding quickly and need a great and clear way to keep track of our expenses, income, and all other Financial aspects of our business. My research has led me to believe that QuickBooks online is the best method, however, it seems as though QuickBooks deals a lot with sending out invoices. The price of QuickBooks is also troublesome. With a current rental business and the lack for a need to send out invoices, are there other accounting software programs that are recommended for rental investors? Caveat: my accountant uses QuickBooks (probably EXTREMELY normal). Also, we may end up flipping houses in the future, if that affects your answers. Thanks for any guidance possible!

[Gerald Demers]

Hello @Chris Pomerleau, we use Quickbooks because our CPA and bookkeeper who focus their business on real estate investors, use it and I would strongly suggest you do the same.  If you use the same program, your CPA can help you set up your chart of accounts, your bookkeeper will know how everything is structured and when it's time to do taxes or any major event, before you meet with your CPA, you simply export your chart of accounts and send it to them.  While you are sitting down with them, they have your chart of accounts already restored for reference.  When they need to do your taxes, again, they simply load your chart of accounts into their Quickbooks, they can quickly run the exact reports they need and run all the time in much less time - translation, cheaper for you and less chance of mistakes.  

We have MapleStar Real Estate Investments, LLC and Brooks Young Financial Group as primary LLCs and companies for flipping real estate and notes (S-corps, great to pay salaries, set up retirement and medical accounts. HOwever, the IRS considers everything as inventory regardless how long you own it so you can't depreciate property). CPA set up the chart of accounts specific to that type of business.

Then we added MapleStar Property Management LLC for our rental portfolio (LLC as a partnership - depreciation allowed and all other real estate deductions). CPA set up the chart of accounts specific to this company which functions differently. In Quickbooks, you can switch between each company, having only one open at a time.

PS:  Make sure your CPA knows real estate investing.  I have seen a few that are great CPAs to help you run many types of businesses but know little of real estate investing and end up missing a bunch of tax advantages.  

PPS:  We don't send out invoices that often and that is certainly not why we use Quickbooks.  

Gerald Demers