All Forum Posts by: Gita Faust

Do share more. Tell me:

- What do you do: Flip, STR, LTR...?

- How many EINs?

If you have multiple EIN then use QuickBooks Desktop. All QuickBooks Desktop versions are on an annual subscription since 2022. Now the question is can you access it online: you can for an additional monthly fee.

QuickBooks Online is not as bad as everyone is saying. I am not saying because I am a Solution Provider but from experience. You just have to learn how to use it to optimize and streamline your procedures.

Years ago, I did say QBO was no good, but they have updates along with new features, that make Accounting and Bookkeeping easy.

Like anything else, with a new shine object, you have to put in the time and resources to learn how to use the software and view reports on a weekly basis. 

When someone recommends only one software or version, they tend to only work with one. But as a consultant, I look at your needs and wants and then recommend the software. 

You should also review reports Profit Loss Unspecified and Balance Sheet by Class ( scroll way to the right till you see the second last column titled Unspecified)

Ask your bookkeeper to enter the details on each transaction.

Search IRS website for schedule C /1065 for a list and then break it down in detail as to what you want to track.

@Michael Sauls The screens may be from the old version, accounting, bookkeeping procedures, process, and workflow are the same. If you do purchase the course, and have questions do email us.

If you are using the QuickBooks Online Advanced version we have specific instructions under a different course.

It all depends on the type and value of your property. You would have to decide on a value approach: the actual, analysis report by a professional CS ... The most common is for acquisition and improvements and it starts when you pay a vendor, let us call it Actual cost. Track each and every penny in detail in your accounting software any time you make a payment, and there you have a list ready at the end of the year with date, amount, vendor, and type of expense. 

You must have checked out the IRS website. https://www.irs.gov/businesses/cost-segregation-audit-techniques-guide-chapter-3-cost-segregation-approaches

@Stephen Bianes 

It starts with keeping track of all your money in and out including expenses incurred in training, research, networking etc. 

A question such as do I need a bookkeeper, accountant, tax advisor, real estate strategist, CPA, Tax Preparer -- one has to gather all statements (bank, credit card, loan...), receipts, closing doc, and get them organized including any money paid in cash or via personal accounts.

If you are the DIY kind of person, need to either use a software or paper/pencil to track details such as repairs vs improvements that increase the value of the property, the word is "detail" to take advantage of accelerated depreciation. When recording it in one place, you will have the reports at your fingertips. If not just outsource your bookkeeping. When you go to see a CPA they will be able to advise you personally and your real estate business.

Now that you have it all ready, you take your business to the next level.

You have to account for each and every penny received, paid, and sometimes just deducted which could either be reflected on Profit Loss or Balance Sheet depending if it is a rehab or rental. We have seen settlement and loan cost not accounted for rentals and depreciated.

It is with real estate business in mind, record it.

As you own your business, you know why you are contributing or withdrawing money. Allocate them ahead of time. Here are my 2 cents:

1. Loan account (Asset/Liability) for money that you're expected to be repaid by the business

2. Initial Investment to start your business (Equity)

3. Capital Contribution use the account when you make an additional investment during the course of business (Equity)

4. Distribution aka Guarantee payments are taxable (Equity)

5. Distribution Net income/loss (Equity) 

6. Draws/Distribution that does not belong in any of the above (Equity)

Your options are DIY or sub it out. You have many options Stessa is free, Excel, GoogleSheets, QuickBooks and it all depends on your future goals. Anything new you learn takes time and resources. If this is the last think on your list, then make it your first - 15 minutes every day will make a difference.