All Forum Posts by: Dan V.

@Kole Kingslien Use QBO Plus, activate the Class tracking, then set up each property as a class. Setup each address as parent customer and (optional) tenant as child customer or sub-customer. Make sure you fill out the class field in each transaction line for it to track it properly. You can later run reports by class or by total. 

Of course, there's more to it, so I would recommend seeking some professional guidance if you're not sure what to do or how to do it. 

@Marcus H. It's been a while since I used desktop version. Setup properties as class, for multifamily, set up each unit as sub-class. For tracking purpose, you can set up the property address as parent customer, then the actual tenant as sub-customer (i believe in desktop, it's called job). 

More and more people are leaning towards QBO nowadays especially if they're using remote accountant/CPA. There has been a lot of improvements in QBO which gives you the option to add custom fields and customize the setup in order to fit your needs. I just attended a QBO product update webinar last week and found out that they will soon roll out a new feature for "automatic late fee" (right now it's still in beta and available only to few users). Another new feature coming is the ability to add multiple notes (with date stamp) in client's account. Both of these new features will be beneficial to industries like REI. I use to be a Quickbooks desktop user but since I discovered online version, I always recommend QBO since then.

Good luck!

For bookkeeping purposes, treat the PM as a bank. That means you will need to setup a bank account in QB (name it like "ABC Company Acct"), enter the transactions in the PM statement as you would enter transactions in a bank account, and reconcile it monthly to make sure you captured everything as stated in the PM statement. 

@Bruce Weyer Your procedures as far as accruing your property tax and creating a bank sub-account for your reserve are perfectly fine since it serves your purpose without skewing the numbers. 

To minimize manual entry, you can set up both the accrual entry and reserve setup entry as scheduled recurring journal entry to automatically post every month. 

@Raul Velazquez Jr I would say as early as the first money comes out of the bank and I agree not to wait until tax season. Also, remember that it's the best practice to have a separate account (bank and/or cc) for your business, it will save you time and money when it's time to plug those numbers in. If you are planning to DIY your books, at least have a professional that understand RE industry to help you set up your books and explain the process for you, then work from there. Start talking to few accountant/CPAs to see what they can offer and research what software do you think will fit your needs. 

Good luck on your deal!

@Joshua D. When you decided to pursue RE, she supported you and when you brought up the idea of quitting your job, she fully was on board. Your business is blowing up and you're getting or in the path of getting what you want. 

What about her, have you asked what she wants? And if she tells you what it is, will you support her all the way as she did to you? Everybody here has different opinions on your situation but your wife is the only person who can tell you the right answer, talk to her and ask her what will make her happy. Then, decide based on what's more important to you.

@Luke Naylor I still recommend Quickbooks Online Plus. Most of the free tutorials you can find online are for general use (no specific industry) so you may not see it fit, however, QB can be customized to tailor special industries like REI. To name few features, you can connect your bank & credit card account(s) to QBO to automatically download the transactions daily, set up rules for any recurring charges, setup recurring transactions (ie invoices to tenants), sent out reminder (individual or batch), accept online payments (cc & bank) which can be tenant or landlord initiated, track multiple income sources (ie. flip, rental, wholesale), track individual properties, charge tenants for reimbursable expenses, track 1099 contractors (and e-file tax forms), and create a budget. Most of the features need to be activated and set up manually and procedures need to be in place in order for it to work properly.

There are also other software available but I can only speak of what I have experience with. And if you may decide to seek guidance, make sure to look for someone who both know the software and the industry. 

I recommend QBO Plus. If all are under the same entity, you can activate the "Location" feature to keep track of the separate revenue streams, then use "Class" to track each property. 

Yes, it is necessary to understand the math and the numbers to be successful in ANY business. We all know that 1+2=3, but understanding why 1 is 1, 2 is 2 and 3 is 3 requires some specialized knowledge especially if you are running/growing your business. In the accounting world, 1+2 maybe different from 2+1 although both equal to 3, and one may be better than the other. So understanding the meaning of your numbers is really important in making a good decision. 

Learn your numbers or speak to someone who can interpret them to you in plain language. 

@Malik Batchelor Use this  link .  Just type in the street address in the search field and once the map shows up click the "info" tab on the left to see details including the code enforcement cases. Hope it helps!