Favorite bookkeeping software?
Flagstaff, AZ · Member since 2022 · 18 posts · 9 votes
Favorite bookkeeping software?
Most Popular Reply
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3yQuote from @Jonah Downs:
Hello everyone, I'm just wondering what bookkeeping software everyone uses? I'm only going to be using it for three single family, long term rentals.
Thanks for any suggestions!
Software is a common question on BiggerPockets. Here are some things to consider:
- Most investors don't need software until they have 5-10 rentals. All you need is a single place to track tenant information, payment history, maintenance, and a few other things. You can easily do this on a spreadsheet and it will take less time to track than it would to find and learn a new software. If the software is not simplifying your life or making you more accurate, you shouldn't use it.
- Software does have extremely helpful features like online payments, marketing syndication (click a button and your property is advertised on multiple sites), electronic document review/signing, maintenance tracking, and owner reports. But do you really need that for your one rental?
- There's no perfect software out there. Every system you try will have flaws or you'll salivate over a feature that shows up in other software.
Some common names you'll see thrown around a lot: Stessa, Apartments.com, RentRedi, TenantCloud, Innago, RentManager, Avail, Rentec Direct, Doorloop, etc.
I recommend you search for each of those apps online and see what they offer, how much they charge, etc. Make a simple spreadsheet or written list with the features of each and see which ones appeal to you most. Try to narrow it down to your top 3-4. Once you have a short list, get an account with each one and run them through the wringer to see how they really function. Do one task at a time in each app so you can compare apples to apples.
- Load a property with pictures and details.
- Market that property.
- See what your marketing looks like from the public's perspective.
- Submit a fake application to see how easy the process is.
- Run a credit/screening report on yourself.
- Enter a maintenance request, assign a vendor, attach a fake invoice.
- Enter charges to the tenant's ledger.
- Enter recurring charges and automatic late fees.
- Sign documents electronically.
- Run owner reports.
After testing a few apps, one of them should stand out for you. Choose that one and use it. No system is perfect, so don't waste your time chasing after the next shiny object. You should only have to change when your current software has a flaw or lacking feature that is causing you to spend too much work on a work-around. Then you can consider researching and finding something that meets your needs better.
The DIY Landlord Book4.7248 Reviews
20 Replies
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
Quote from @Jonah Downs:
Hello everyone, I'm just wondering what bookkeeping software everyone uses? I'm only going to be using it for three single family, long term rentals.
Thanks for any suggestions!
Software is a common question on BiggerPockets. Here are some things to consider:
- Most investors don't need software until they have 5-10 rentals. All you need is a single place to track tenant information, payment history, maintenance, and a few other things. You can easily do this on a spreadsheet and it will take less time to track than it would to find and learn a new software. If the software is not simplifying your life or making you more accurate, you shouldn't use it.
- Software does have extremely helpful features like online payments, marketing syndication (click a button and your property is advertised on multiple sites), electronic document review/signing, maintenance tracking, and owner reports. But do you really need that for your one rental?
- There's no perfect software out there. Every system you try will have flaws or you'll salivate over a feature that shows up in other software.
Some common names you'll see thrown around a lot: Stessa, Apartments.com, RentRedi, TenantCloud, Innago, RentManager, Avail, Rentec Direct, Doorloop, etc.
I recommend you search for each of those apps online and see what they offer, how much they charge, etc. Make a simple spreadsheet or written list with the features of each and see which ones appeal to you most. Try to narrow it down to your top 3-4. Once you have a short list, get an account with each one and run them through the wringer to see how they really function. Do one task at a time in each app so you can compare apples to apples.
- Load a property with pictures and details.
- Market that property.
- See what your marketing looks like from the public's perspective.
- Submit a fake application to see how easy the process is.
- Run a credit/screening report on yourself.
- Enter a maintenance request, assign a vendor, attach a fake invoice.
- Enter charges to the tenant's ledger.
- Enter recurring charges and automatic late fees.
- Sign documents electronically.
- Run owner reports.
After testing a few apps, one of them should stand out for you. Choose that one and use it. No system is perfect, so don't waste your time chasing after the next shiny object. You should only have to change when your current software has a flaw or lacking feature that is causing you to spend too much work on a work-around. Then you can consider researching and finding something that meets your needs better.
The DIY Landlord Book4.7248 Reviews - Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes3y
Quote from @Jonah Downs:
Hello everyone, I'm just wondering what bookkeeping software everyone uses? I'm only going to be using it for three single family, long term rentals.
Thanks for any suggestions!
GREAT POST by Nathan. What he does a great job of pointing out and we see far to often on BP is people follow others which is not always the best thing to do. For example, get expensive accounting software or need an enigma machine to figure out their LLC structure.
Some things to add are what are you using it for. Do you have a property manager who handles the bills, utilities and rents? If so, then a spreadsheet could probably do.
Also do you do your own taxes or have a CPA? If you have a CPA what do they prefer and what is compatible with them.
7e investments53 Reviews - Accountant · Indianapolis, IN · Member since 2019 · 247 posts · 134 votes3y
My clients use Quickbooks online and we have not had any problems. The main thing is getting it setup right.
- Flagstaff, AZ · Member since 2022 · 18 posts · 9 votes3y
Thank you, everyone. This was super helpful. Definitely gives me the right questions to ask myself.
- 3ySean O'KeefePro MemberCPA | Accepting new clients | 50 States · Member since 2022 · 1k+ posts · 871 votes
@Jonah Downs good question and looks like you got some great answers. Here's another recent thread on bookkeeping/accounting software you might want to check out https://www.biggerpockets.com/...
In a nutshell:
Quickbooks Online (QBO) is the favorite for real estate accounting, bookkeeping & taxes, but expensive to track multiple properties because you need the version with classes ($85 per month). Also, QBO isn't set up out of the box for real estate which means you need to pay someone to set it up for you or figure it out yourself.
There are a lot of full-blown property management software systems out there with accounting modals (Builduim, Doorloop, Rentred, to name a few) but they do a lot of other things besides accounting, bookkeeping, and taxes so not the same thing as QBO.QBO has a few cheaper competitors Stessa & Digb.com that are specifically set up out of the box for real estate investors (e.g. income/expenses categories are things you'd recognize like repairs, appraisal, etc.) and there is no need to set up a separate class for each of your properties since the portfolio already includes these. They're also a lot cheaper: Stessa (free to start) and Digb.com ($1 per month to start).
In the other thread, someone also suggested Quicken as an option at $50 a year but I think there's some setup involved to tailor it to your real estate needs (the person on this thread could clarify: https://www.biggerpockets.com/...) - Accountant · Pensacola, FL · Member since 2018 · 14 posts · 10 votes3y
AccountingSuite.com has the best software and they even have a rental manager Property Management features built into the software. Its easy to use and you can defiantly do it yourself.
- Rental Property Investor · AL · Member since 2020 · 41 posts · 10 votes3y
Quote from @Patrick Doyle:
AccountingSuite.com has the best software and they even have a rental manager Property Management features built into the software. Its easy to use and you can defiantly do it yourself.
Does Accounting Suite allow you to track multiple properties independently? In QBO it's done as classes I believe and it's a bit tricky to set up.
- Member since 2022 · 9 posts · 11 votes3y
Quote from @Marie M.:
Quote from @Patrick Doyle:
AccountingSuite.com has the best software and they even have a rental manager Property Management features built into the software. Its easy to use and you can defiantly do it yourself.
Does Accounting Suite allow you to track multiple properties independently? In QBO it's done as classes I believe and it's a bit tricky to set up.
No, it's for small businesses, not rental properties.
- Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes3y
Quicken is overkill for less than 20 or 30 properties at $50 year with automatic transaction entry from credit cards and banks. Once you’re bigger than that you’re either hiring a bookkeeper or learning Quickbook’s.
- 3yJimmy AlexanderPro MemberInvestor · Member since 2021 · 26 posts · 20 votes
Hey Jonah,
i use the most basic quickbooks subscription for 9doors. Pretty simple to manage.
You technically don't need a bookkeeping software for under 10 doors like a previous post mentioned. An excel spread sheet would do the trick.
- 3ySimon W.Business MemberReal Estate Consultant · Lehigh Valley PA & New York City · Member since 2013 · 1k+ posts · 664 votes
Quote from @Jonah Downs:
Hello everyone, I'm just wondering what bookkeeping software everyone uses? I'm only going to be using it for three single family, long term rentals.
Thanks for any suggestions!
Well I have favorite, but it is usually for big companies so it will be out of the question. Yardi Voyager is my favorite, next in line is AppFolio.
But for you, I think you would need something smaller like Xero (cheaper than QBO) I am certified advisor for both Xero and QBO and I recommend Xero more due to being much cheaper. QBO is a bit better in terms of accessing bank feeds. Xero has some limitation on some bank accounts might not work. But if it works, it is a time saver. But doing it manual doesn't take much time as well. Simple import.
After you figure which system, the next important thing is the setup.
I do it for my clients all the time.
- Cincinnati, OH · Member since 2016 · 1 post · 0 votes3y
Quote from @Simon W.:
Quote from @Jonah Downs:
Hello everyone, I'm just wondering what bookkeeping software everyone uses? I'm only going to be using it for three single family, long term rentals.
Thanks for any suggestions!
Well I have favorite, but it is usually for big companies so it will be out of the question. Yardi Voyager is my favorite, next in line is AppFolio.
But for you, I think you would need something smaller like Xero (cheaper than QBO) I am certified advisor for both Xero and QBO and I recommend Xero more due to being much cheaper. QBO is a bit better in terms of accessing bank feeds. Xero has some limitation on some bank accounts might not work. But if it works, it is a time saver. But doing it manual doesn't take much time as well. Simple import.
After you figure which system, the next important thing is the setup.
I do it for my clients all the time.
Saw in a different post that you’re also using Buildium. What are your thoughts on Appfolio vs Buildium? Why do you find AF better? How bad is the AF reconciliation compared to Buildium? Hearing that all transactions need to be entered manually in AF, no bank download - that can’t be right is it?
- 3ySimon W.Business MemberReal Estate Consultant · Lehigh Valley PA & New York City · Member since 2013 · 1k+ posts · 664 votes
Quote from @Mike C.:
Quote from @Simon W.:
Quote from @Jonah Downs:
Hello everyone, I'm just wondering what bookkeeping software everyone uses? I'm only going to be using it for three single family, long term rentals.
Thanks for any suggestions!
Well I have favorite, but it is usually for big companies so it will be out of the question. Yardi Voyager is my favorite, next in line is AppFolio.
But for you, I think you would need something smaller like Xero (cheaper than QBO) I am certified advisor for both Xero and QBO and I recommend Xero more due to being much cheaper. QBO is a bit better in terms of accessing bank feeds. Xero has some limitation on some bank accounts might not work. But if it works, it is a time saver. But doing it manual doesn't take much time as well. Simple import.
After you figure which system, the next important thing is the setup.
I do it for my clients all the time.
Saw in a different post that you’re also using Buildium. What are your thoughts on Appfolio vs Buildium? Why do you find AF better? How bad is the AF reconciliation compared to Buildium? Hearing that all transactions need to be entered manually in AF, no bank download - that can’t be right is it?
AF is definitely better, but you are also paying for a premium price. Right now AF is charging my company roughly $120K a year with all those features.
Bank reconciliation for both isn't the best. AF is manually entering, they do have bank feed but not the best use of it.
- Real Estate Consultant · Reston, VA · Member since 2022 · 513 posts · 521 votes2y
Baselane is a bookkeeping software that is specifically designed for real estate investors. It provides a suite of tools that cater to the unique needs of real estate investors
There's a few highlights of using the platform:
- - Real Estate Specific Features: Baselane offers tools tailored to real estate investments, such as tracking rental income, managing expenses, and organizing property-related documents.
- - Automated Accounting: The software can automate many accounting processes, such as categorizing transactions and reconciling accounts.
- - Bank Integration: Baselane typically provides seamless integration with various banking institutions, allowing for real-time transaction updates and financial oversight. I have my Baselane account linked to several different accounts (Capital One and PNC to name a few)
- - Cost-Effective: The best part of Baselane is that the platform is completely free!
- Here's a link to learn more: https://www.baselane.com/landlord-accounting/
- 9moJake BakerBusiness MemberFlipper/Rehabber · San Diego, CA · Member since 2020 · 1k+ posts · 695 votes
I recommend using spreadsheets for your first property. Then, as you scale, work with a bookkeeper to set up your QuickBooks Online correctly. At the bare minimum, you should do the following to make your bookkeeping easier:
- Dedicate one checking account and credit card exclusively to real estate. Keep personal and business finances separate to create fewer headaches.
- File all receipts in a dedicated Google Drive folder. Digitize physical receipts for easy storage and use a consistent naming convention.
- Maintain proper records, such as contracts, settlement statements, etc.
- Additionally, you can track income and expenses consistently using software or spreadsheets.As you scale, if bookkeeping isn't fun for you, consider hiring a bookkeeper.
BookkeepingRE - Bookkeeping for Real Estate & Service-Based Businesses58 Reviews - Accountant · Pittsburgh, PA · Member since 2026 · 10 posts · 10 votes8moFor a few single-family long-term rentals, most people keep it pretty simple. I usually see QuickBooks Online work well since it connects directly to bank accounts and makes year end reporting straightforward. That’s what I use for clients as well, sometimes paired with a rent collection platform if they want better tenant-level tracking. The main thing is just staying consistent during the year so nothing piles up at tax time.
Quote from @Jonah Downs:
Hello everyone, I'm just wondering what bookkeeping software everyone uses? I'm only going to be using it for three single family, long term rentals.
Thanks for any suggestions!
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