Our Books are getting crazy Fast How do we Manage this???

Question

Yo Bigger Pockets Team, our business is growing like a stinking wild fire and our books are quickly becoming more and more of a problem.  In the past one of our assistants and I have tag teamed our books.  However, we are now working on 6 different properties all at the same time and we have several bank accounts and this accounting stuff makes me want to rip what little hair I have left out.  Does anyone on here recommend any good accountants in Arkansas?  What are some key questions that you ask accountants when looking for a good one?  What are some of the things you look for on their resume? We would like to have a new accountant integrated within 2-3 weeks.

Matthew Reid · Answer

@Basit Siddiqi @Max Emory @Jay Hinrichs

I wanted to thank you all for the help.  We have since interviewed several accounting firms and I believe that we have selected the absolute best accountant for our business.  I am super excited to be bringing them on our team.  I would not have been able to make as good of a selection without all of your help.

@Logan Snyder

We need to get lunch sometime!!!  I would like to see what your goals are and if we can potentially get some work done together.

Logan Snyder · Answer

@Matthew Reid I might be able to help. I live close to Jonesboro, I'm good with numbers, and I'm easy to teach. I've not personally had experience book keeping other than keeping up with my own house-hack duplex, but if you already have a system in place I'd learn quick and may be able to help you and your assistant on a few evenings or weekends each month until you find a professional.

Best regards!

Basit Siddiqi · Answer

@Matthew Reidbookkeeping for real estate companies is very complex. Below are some of the issues that I find when the books are done.1) People improperly record mortgage payments as an expense even though mortgage payments are composed of loan paydown, mortgage interest and escrow payments2) Closing statements are improperly recorded3) The balance sheet hardly ever shows security deposit transfers4) PM monthly statements are hardly ever recorded properly.I do the books for my own real estate company - feel free to take a look at how they look.

Max Emory · Answer

@Matthew Reid, I 100% agree with @Jay Hinrichs. Hire a solid bookkeeper as a contractor for ongoing bookkeeping support to handle the day to day grunt-work in your books. This will save you a lot of money versus having a CPA do this at their hourly rate. If the bookkeeper is good they will also become a trusted advisor to your team on the financial side of your business.

__________________________

Bookkeeping Professional | Real Estate Investor

Matthew Reid · Answer

@Jimmy Farag we use quickbooks but I do not have the patience to categorize every expense.  It kills my soul.  HAHA!!!

Logan Snyder · Answer

That sounds great! I'll message you.

Jimmy Farag · Answer

Hi Matthew,

Accounting is my thing and It’s still making me lose my hair.

There are many options to use. Usually I recommend QuickBooks online, you can track income and expenses by property, create recurring invoices which should automate some of the work.

Please let me know if you have any questions and will do my best to answer them

Our Books are getting crazy Fast How do we Manage this???

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