Landlords: how do you stay on top of your books
Accountant · Pittsburgh, PA · Member since 2026 · 10 posts · 10 votes
Landlords: how do you stay on top of your books
Most Popular Reply
Michael CalveyPro Member
Head of Sales at BiggerPockets · Denver, CO · Member since 2023 · 134 posts · 154 votes@Amiraslan Panahov
Since you’re an accountant, you probably see the messy side of this more than anyone!
I used to do the whole Quicken/QuickBooks dance. It worked, but I always felt like I was forcing software designed for "regular" businesses to do rental property stuff. Categorizing security deposits correctly (liability vs. income), splitting expenses across properties... it was doable, but clunky.
What changed things for me was realizing that the banking and the bookkeeping should be the same thing.
I switched to Baselane about a year ago. It's purpose-built for landlords, you get actual bank accounts (FDIC-insured, no fees), but the accounts are designed around how we actually operate. You can create sub-accounts per property, and transactions auto-categorize into Schedule E categories as they happen.
So instead of downloading transactions into separate software and then tagging everything manually... it's just done. Rent comes in, it's tagged to the right property. You pay for a repair, it's categorized correctly. At tax time, you export a Schedule E report.
A few things I really like:
- Virtual sub-accounts: Separate buckets for security deposits/CapEx without opening new physical accounts.
- Auto-tagging: It knows what Schedule E lines look like.
- Rent collection: Tenants pay by ACH/card, and it flows right into that property's ledger.
- It's free: No monthly fees.
If you have clients (or if you are just managing your own portfolio) who aren't organized enough for QBO but need something better than Excel, this is the sweet spot. Plus they are our official banking parter of BiggerPockets. :)
Baselane.com/bp is the sign up link and if you are a Pro Member you'll get $100 when you open a new account. :)
22 Replies
I’ve only got a dozen properties so I’d say I’m a small landlord. I spend maybe 30 minutes to an hour a month entering everything in to Quicken. (Quickbooks little brother.). It will download and enter all bank and credit card transactions automatically so there’s not much to it.
For taxes at year end I print out a one page report for each property that lists the income and all expenses by category. Then there’s one page for “general” expenses that aren’t property specific.
On your end you’ll have reports for income and expenses by property or category or globally. You can compare any time period to any other time period.
- Accountant · Pittsburgh, PA · Member since 2026 · 10 posts · 10 votes9mo
Quote from @Bill B.:
I’ve only got a dozen properties so I’d say I’m a small landlord. I spend maybe 30 minutes to an hour a month entering everything in to Quicken. (Quickbooks little brother.). It will download and enter all bank and credit card transactions automatically so there’s not much to it.
For taxes at year end I print out a one page report for each property that lists the income and all expenses by category. Then there’s one page for “general” expenses that aren’t property specific.
On your end you’ll have reports for income and expenses by property or category or globally. You can compare any time period to any other time period.
That’s a solid system — sounds like you’ve got it pretty dialed in. Appreciate you sharing how you handle it
- 9moAaron ZimmermanBusiness MemberAccountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
I'm a CPA and I try to handle my own rental property bookkeeping on a monthly basis. I only have three properties but it's a lot to manage if you don't do it as least quarterly, in my opinion.
Brick House CPAs53 Reviews- Accountant · Pittsburgh, PA · Member since 2026 · 10 posts · 10 votes9moAgreed — staying on top of it throughout the year makes a big difference. Thanks for sharing your perspective.
Quote from @Aaron Zimmerman:
I'm a CPA and I try to handle my own rental property bookkeeping on a monthly basis. I only have three properties but it's a lot to manage if you don't do it as least quarterly, in my opinion.
- 9moJeremy TaggartBusiness MemberReal Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 646 votes
@Amiraslan Panahov I have everything on quickbooks which I update weekly. Makes it pretty seamless come tax time since all the accounting is done and the only thing left to do is prepare the tax return. I just upload my monthly statements to google drive and share with the accountant/CPA.
All of my properties are with property management as well which also does the accounting for any income/expenses that run through them so less I have to actually classify on quickbooks in regards to the rentals.
DHRE- The Jeremy Taggart Team590 Reviews- Accountant · Pittsburgh, PA · Member since 2026 · 10 posts · 10 votes9moHi Jeremy, Appreciate you sharing how you handle it
Quote from @Jeremy Taggart:
@Amiraslan Panahov I have everything on quickbooks which I update weekly. Makes it pretty seamless come tax time since all the accounting is done and the only thing left to do is prepare the tax return. I just upload my monthly statements to google drive and share with the accountant/CPA.
All of my properties are with property management as well which also does the accounting for any income/expenses that run through them so less I have to actually classify on quickbooks in regards to the rentals.
- 9moMichael CalveyPro MemberHead of Sales at BiggerPockets · Denver, CO · Member since 2023 · 134 posts · 154 votes
@Amiraslan Panahov
Since you’re an accountant, you probably see the messy side of this more than anyone!I used to do the whole Quicken/QuickBooks dance. It worked, but I always felt like I was forcing software designed for "regular" businesses to do rental property stuff. Categorizing security deposits correctly (liability vs. income), splitting expenses across properties... it was doable, but clunky.
What changed things for me was realizing that the banking and the bookkeeping should be the same thing.
I switched to Baselane about a year ago. It's purpose-built for landlords, you get actual bank accounts (FDIC-insured, no fees), but the accounts are designed around how we actually operate. You can create sub-accounts per property, and transactions auto-categorize into Schedule E categories as they happen.
So instead of downloading transactions into separate software and then tagging everything manually... it's just done. Rent comes in, it's tagged to the right property. You pay for a repair, it's categorized correctly. At tax time, you export a Schedule E report.
A few things I really like:
- Virtual sub-accounts: Separate buckets for security deposits/CapEx without opening new physical accounts.
- Auto-tagging: It knows what Schedule E lines look like.
- Rent collection: Tenants pay by ACH/card, and it flows right into that property's ledger.
- It's free: No monthly fees.
If you have clients (or if you are just managing your own portfolio) who aren't organized enough for QBO but need something better than Excel, this is the sweet spot. Plus they are our official banking parter of BiggerPockets. :)
Baselane.com/bp is the sign up link and if you are a Pro Member you'll get $100 when you open a new account. :) - 9moMichael CalveyPro MemberHead of Sales at BiggerPockets · Denver, CO · Member since 2023 · 134 posts · 154 votes
Here’s the simple system I’ve seen work best for landlords (especially once you have more than 1 property):
1) Start with the right account structure (this is 80% of the battle)
-
Dedicated bank account per property (or at minimum per entity/LLC).
-
Dedicated card for property expenses.
-
If you self-manage, this keeps the “what was this charge?” chaos to near-zero.
-
If you use a PM, you still want your own clean accounts + PM statements.
2) Weekly 10-minute routine (or every other week if you’re small)
-
Scan new transactions.
-
Categorize anything unclear while it’s still fresh.
-
Upload/attach any receipts you don’t want to lose.
3) Monthly 30-minute close
-
Reconcile bank statements.
-
Confirm rent deposits match leases / PM statements.
-
Review the “uncategorized” bucket until it’s zero.
-
Tag anything that’s CapEx vs. repair (this matters a lot at tax time).
4) Use a rental-specific chart of accounts
You don’t need something fancy — you just need consistency. Typical buckets:-
Income: Rent, late fees, laundry/other
-
Operating: repairs & maintenance, utilities, insurance, HOA, supplies, advertising, legal/pro fees, bank fees
-
Turnover: cleaning, paint, small replacements
-
CapEx (capital improvements): roof, HVAC, major appliances, renovations (track separately)
-
Liabilities: security deposits (not income)
-
Auto: mileage (or actuals) + tolls/parking if applicable
5) Year-end handoff to your CPA becomes stupid-easy
Give them:-
P&L by property
-
Balance sheet (including security deposit liability)
-
CapEx list (date, vendor, amount, what it was)
-
Mileage total + method
-
1099 info if relevant (vendors)
-
PM statements (if applicable)
If you want this to feel effortless, the best move is using banking that’s designed for rentals: separate accounts by property, clean transaction feeds, and bookkeeping/reporting that’s “landlord-native.”
That’s why I like Baselane for this exact question: it’s banking built for real estate investors, so the workflow above becomes the default instead of a constant discipline test.
Full transparency: Baselane is a BiggerPockets partner, but even if they weren’t, the “banking-first bookkeeping” approach is still the right answer for landlords who want clean books without living in spreadsheets.
- Accountant · Pittsburgh, PA · Member since 2026 · 10 posts · 10 votes9moHi Michael, thank you for your response. As an Accountant/Auditor I can agree that if all those steps are followed it indeed makes it effortless to stay on top of the books.
Quote from @Michael Calvey:
Here’s the simple system I’ve seen work best for landlords (especially once you have more than 1 property):
1) Start with the right account structure (this is 80% of the battle)
-
Dedicated bank account per property (or at minimum per entity/LLC).
-
Dedicated card for property expenses.
-
If you self-manage, this keeps the “what was this charge?” chaos to near-zero.
-
If you use a PM, you still want your own clean accounts + PM statements.
2) Weekly 10-minute routine (or every other week if you’re small)
-
Scan new transactions.
-
Categorize anything unclear while it’s still fresh.
-
Upload/attach any receipts you don’t want to lose.
3) Monthly 30-minute close
-
Reconcile bank statements.
-
Confirm rent deposits match leases / PM statements.
-
Review the “uncategorized” bucket until it’s zero.
-
Tag anything that’s CapEx vs. repair (this matters a lot at tax time).
4) Use a rental-specific chart of accounts
You don’t need something fancy — you just need consistency. Typical buckets:-
Income: Rent, late fees, laundry/other
-
Operating: repairs & maintenance, utilities, insurance, HOA, supplies, advertising, legal/pro fees, bank fees
-
Turnover: cleaning, paint, small replacements
-
CapEx (capital improvements): roof, HVAC, major appliances, renovations (track separately)
-
Liabilities: security deposits (not income)
-
Auto: mileage (or actuals) + tolls/parking if applicable
5) Year-end handoff to your CPA becomes stupid-easy
Give them:-
P&L by property
-
Balance sheet (including security deposit liability)
-
CapEx list (date, vendor, amount, what it was)
-
Mileage total + method
-
1099 info if relevant (vendors)
-
PM statements (if applicable)
If you want this to feel effortless, the best move is using banking that’s designed for rentals: separate accounts by property, clean transaction feeds, and bookkeeping/reporting that’s “landlord-native.”
That’s why I like Baselane for this exact question: it’s banking built for real estate investors, so the workflow above becomes the default instead of a constant discipline test.
Full transparency: Baselane is a BiggerPockets partner, but even if they weren’t, the “banking-first bookkeeping” approach is still the right answer for landlords who want clean books without living in spreadsheets.
-
-
- 9moJames JonesPro MemberInvestor · Collierville, TN 38017 · Member since 2017 · 748 posts · 550 votes
I’ve learned the hard way that waiting until tax time is the most expensive option.
We keep our books updated monthly, broken down by property and entity. That gives us real visibility into cash flow, operating costs, and performance while there’s still time to fix problems, not after the year is over.
Our CPA’s job is to advise and file, not clean up 12 months of messy data. When books are current, tax prep is faster, cheaper, and far more strategic.
Even for small portfolios, a simple monthly close beats a year-end scramble every time.
- 8moJake BakerBusiness MemberFlipper/Rehabber · San Diego, CA · Member since 2020 · 1k+ posts · 696 votes
I use QuickBooks Online for my flipping and rental businesses, as well as for bookkeeping clients. QBO has everything you need to run a business, including excellent reporting features and integration with other software. It is the most popular software in the industry, and most Tax Preparers are familiar with it, which makes tax season easier.
However, many on the forums will advise against QBO. It can feel like feature overload. The main reason is that it is not initially set up for a Real Estate business like other “real estate-specific” accounting software. It takes a certain level of QB knowledge to set it up correctly.
I actually love baselane for rental property management and for implementing profit-first wth the bank accounts. I recommend it to people all the time for that. The bookkeeping features are lacking if you are looking for anything more than a P&L due to their single-entry accounting system.
BookkeepingRE - Bookkeeping for Real Estate & Service-Based Businesses52 Reviews- Accountant · Pittsburgh, PA · Member since 2026 · 10 posts · 10 votes8moThanks Jake, this makes a lot of sense and I mostly agree. QBO is strong and it definitely makes life easier at tax time since most CPAs are comfortable with it, but I’ve also seen how frustrating it can be if it’s not set up properly for real estate from the start. That’s usually where people get turned off.
Quote from @Jake Baker:
I use QuickBooks Online for my flipping and rental businesses, as well as for bookkeeping clients. QBO has everything you need to run a business, including excellent reporting features and integration with other software. It is the most popular software in the industry, and most Tax Preparers are familiar with it, which makes tax season easier.
However, many on the forums will advise against QBO. It can feel like feature overload. The main reason is that it is not initially set up for a Real Estate business like other “real estate-specific” accounting software. It takes a certain level of QB knowledge to set it up correctly.
I actually love baselane for rental property management and for implementing profit-first wth the bank accounts. I recommend it to people all the time for that. The bookkeeping features are lacking if you are looking for anything more than a P&L due to their single-entry accounting system.
Appreciate you sharing your perspective.
- 8moKenneth GarrettPro MemberInvestor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
@Amiraslan Panahov
hate bookkeeping!!! It’s not exciting. It’s boring and I would rather spend my time finding my next investment.
Buy n hold real estate is also boring, but it’s the long game and overtime is very profitable if bought correctly.
Doing BRRRR projects and or flipping is exciting, frustrating, down right scary at times, but taking a run down property and revitalizing; it is exciting.
It took me a while on how to handle the boring aspect of bookkeeping. I’m very simple with it. I own a number of rental properties and it’s just simple boring excel spread sheets, I update every month. If I have some down time, I might do it every week or every two weeks. It makes tax season easier. I send it to my CPA as often as they want. Usually just upload it to their portal. It makes you understand where your money is going and if you’re making a profit.
- 8moBasit SiddiqiBusiness MemberAccountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
I recommnd clients to have an online storage platform such as google drive, apple drive or dropbox to save receipts / invoices.
Once a month or however, you find convenient, update your accounting software or excel file for the income and expenses.
Best of luck to you!
Basit Siddiqi CPA4.979 Reviews - 8moJennifer StevensonPro MemberRealtor · Millsboro, DE · Member since 2018 · 30 posts · 14 votes
We recently sold our SF rental and currently own a duplex so we’re very small. But, prior to getting started we opened a bank account dedicated solely to rentals. Any purchases are made with that account’s card.
My husband maintains a spreadsheet of expenses and we keep a file of receipts that are scanned to our accountant at tax time. He probably spends a few hours a month maintaining our records. - Accountant · Indianapolis, IN · Member since 2019 · 247 posts · 135 votes7mo
You don't want to wait until tax time to get your books caught up. There is a great chance for things to get missed and that could cost you money and time. You should be doing it at the bare minimum every two months. If you are going to use software Quickbooks and other software will work. If you don't want to go the software way, you could use excel. Export all your transactions to excel and assign them categories on there.
In my experience, the most important thing isn’t whether you DIY or hire someone — it’s having a system in place from the beginning.
A few simple things that tend to work well for small investors:
1. Separate your finances
Have a dedicated bank account for the rental property and ideally a separate credit card for property expenses. Let rent go into that account and pay property-related expenses from it. This alone makes tracking much easier.2. Track activity regularly
Some investors use accounting software, but for a smaller portfolio a simple spreadsheet can work well. Track things like:-
Rent received
-
Mortgage payments
-
Repairs & maintenance
-
Utilities
-
Insurance & taxes
Updating it monthly helps keep everything manageable instead of trying to sort it out at tax time.
3. Keep documents organized
Create a Google Drive folder for each property and save receipts, invoices, closing statements, and other documents there. When tax season comes around, everything is already organized.4. Be careful with the DIY approach
A lot of people think doing their own bookkeeping saves money. Sometimes it does—but only if you actually understand accounting basics.What I often see is:
-
People spending a lot of time trying to figure things out
-
Missing expenses that could have been tax deductions
-
Inaccurate books that make tax filing difficult
-
Eventually needing an expensive cleanup
If someone wants to DIY, it’s usually worth at least consulting with an accountant early on to help set up the system and show you how to track things properly. Setting it up correctly from the start is much cheaper than fixing messy books later.
For most investors, the key is staying organized and keeping things updated during the year, not scrambling when tax season arrives.
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- Financial Advisor · Texas, US · Member since 2026 · 15 posts · 8 votes2mo
Great thread — one thing I'd add to the excellent breakdown above: even with clean books and a solid weekly/monthly routine, a lot of landlords still get thrown off by how NOI looks in certain months.
Property taxes and insurance are usually paid annually or semi-annually, but if you record them as a lump expense in the month you pay them, your P&L will show a scary loss that month and an artificially rosy one every other month. The fix is to accrue those costs monthly — divide the annual tax and insurance bill by 12 and post 1/12 each month, even before the actual payment hits your account. That way your monthly NOI tells you the truth about how the property is actually performing, not just when a bill happened to land.
Once your books are accrual-adjusted, it's worth tracking a few numbers every month instead of just categorizing transactions:
- Net cash flow — are you actually keeping money after debt service?
- DSCR (NOI ÷ annual debt service) — above 1.20 is healthy, 1.00–1.19 means watch it closely, below 1.00 means the property isn't covering its own debt
- Repairs as a % of rental income — under 10% is normal, 12–20% is a yellow flag, above 20% usually means deferred maintenance is quietly eating your returns
Doing this monthly (not just at tax time) means you catch a problem property in month 3, not month 11. Happy to walk through how to set up the accrual entries if anyone wants specifics.
- 2moAaron WeikleBusiness MemberMember since 2026 · 82 posts · 23 votes
Separate accounts per property is solid advice but there is a few things I'd add that actually move the needle at tax time. The CapEx vs. repair distinction Michael had mentioned is worth taking seriously. A $1,200 water heater replacement is fully deductible in year one under bonus depreciation rules (Form 4562) and if you capitalize it by mistake then you're having to depreciate it over 27.5 years on your Schedule E. That error costs you real money in year one and creates a mess to unwind later. I would track your cost basis from day one and not just cash flow. Every capital improvement you document and add in turn reduces your taxable gain when you sell. A lot of landlords ignore this until they're sitting across from their CPA before closing and scrambling to reconstruct five years of receipts. On the categorization cadence I would say monthly is the right frequency, but the specific habit that prevents year-end chaos is reconciling against your bank statement, not just categorizing transactions. Those are different. Reconciliation catches duplicate entries, missed deposits, and PM statement discrepancies while the paper trail still exists. If you have more than three or four properties, a simple cost segregation study on any property purchased or significantly renovated after 2017 can reclassify 20-30% of building value into 5- or 15-year MACRS property, which accelerates depreciation considerably and it's not just for commercial. Then your CPA can run numbers to see if the cost of the study pencils out. Keep a mileage log simultaneously because the IRS is skeptical of reconstructed logs.
- 2moMichael K GallagherBusiness MemberReal Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
a hope and a dream, and a google spreadsheet - only half kidding. I only have one duplex outside my primary so personally i use a dedicated email account for that property and a dedicated bank account, so while I don't look at it often the reporting is easy to pull and do the couple times a year I need it. I generally take a picture of any reciepts for the property or invoices emailed and send them to that email and put the pertinent info in the subject line and again lets me reference anything I need down the road. do this in the lowes parking before you leave and it works pretty well.
- Member since 2025 · 25 posts · 6 votes2w
Biggest thing for me is removing as much manual reconciliation as possible. If the rental bank account and bookkeeping are completely separate, you’re basically creating work for yourself every month. That’s one reason I like Baselane — everything is already connected.
- 2wSimon W.Business MemberReal Estate Consultant · Lehigh Valley PA & New York City · Member since 2013 · 1k+ posts · 673 votes
Waiting for the CPA at tax time is how you buy a December archaeology project. For the owners we support, we close monthly: reconcile every bank and card, clear uncategorized, check security deposits still sit as liabilities, separate repairs from CapEx, and review property and entity reports before anyone draws cash.
Dedicated rental accounts help a lot. So does a chart of accounts that matches how they actually operate, not a generic small-business template. Accruing big annual items like taxes and insurance also stops one payment from faking a disaster month on NOI.
If the only time the books are "done" is when the tax organizer is due, you're not staying on top of them. You're surviving them. Lol monthly boring beats annual heroic every time.
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