Bookkeeping Strategies for REI - Pt 4

If you have been following this series, you will remember we have used Accountant in a Box to set up colour coded filing system and decide which way to enter our data from our paper work using the recommended accrual system.

When using QuickBooks Pro 2011 for Real Estate, you will want to use the programs terms (Class, Customer, Job and Vendor) to categorize, sort and report on your data.

I was already familiar with ‘classes’ as I had used Quicken for years, but now I was faced with the dilemma of using the other terms in the proper most efficient way, especially based on the accrual accounting system.  Accountant in a Box came to the rescue suggesting which QuickBooks Pro 2011terms match the equivalent Real Estate term we all know and love.

It may sound obvious that a Vendor is a…well vendor or, supplier you have hired like a property manager but how should you set up your properties and tenants?  This is where AIAB shines.

Using Quickbooks' Terms for Real Estate

Your Real Estate business has property, tenants and vendors associated with it.  Using Accountant in a Box, you can use these terms  and set up your portfolio inside QuickBooks Pro 2011 .   Here is what Accountant in a Box suggests:

• QB/Class – For every property you rent, you need to set up a separate ‘class’.  (property A, property B…).  When you view an income statement in QuickBooks Pro 2011, it is always associated with a class.
• QB/Customer -  Seems odd, but you will also set up a property as a Customer because accounts receivables are tracked by Customer in QuickBooks Pro 2011.  Additionally, you may track upcoming leases for a specific property this way.
• QB/Job – Each tenant is the equivalent of a “job” and you can invoice each job (charge rent), track inactivity (late or no rent), etc.
• QB/Vendor – This is self-explanatory, it is someone you owe money to, for a good or service provided such as handymen, property management etc.

Other areas you will be shown how to set up with Accountant in a Box are:

• Investors and Shareholders
• Recording Security/Last Months Deposits
• Recording Rent Invoice
• Applying Last Month's Rent
• Recording Rental Payments

And so much more.

Accountant in a Box is a full how-to / step-by-step manual with templates included to save you time.  I am only touching the surface with each post and I fully encourage you to check out the program for yourself and your business.  It will be a fantastic asset to you