Quickbooks reports

[Larry Flanagan]

How can I get quickbooks to show me all the cash in and out of a property that I bought, fixed, refi'd, rented, refixed, and sold? I am trying to come up with some IRR calculations on some deals I have completed.

[Account Closed]

Hello Larry, let me see if I can help a little.

If you don't have a CPA or an Accountant, then you really have to know how to setup everything according to the law, financial law, accounting reporting, etc.

For landlords we use a Schedule E. For Corporations we use a Schedule C, etc. That's pretty simple to do in QuickBooks, but you can't merge a Schedule E with a Schedule C.

Since most of you young whipper snappers are into everything regarding Real Estate, it makes your life pretty tough when it comes to keeping track of all the stuff you do, but I think I can help you.

Most Landlords, Investors, have CPA's and Accountants doing their taxes at the end of the year. Therefore, we, as investors and landlords, don't want to have to worry about how to setup our data into QuickBooks as though we were Accountants. We just want to see how much money our investments are making us and whether a proprety is making us money or causing us grief, and at the same time have our Reports be user friendly for our Accountants when it's time to turn over that data at the end of the year for our taxes. And we can do that in QuickBooks. In order to do that we first we need to setup our properties as a class.

*Setup all your Rentals that you own as a class: Call this class Rentals

*Setup all the homes your purchased and want to Flip as a class: Call them Homes Purchased

*Setup all the homes you sold: Call them Homes Sold.

Then list all your properties individually as a sub class of each Building.

Class

Rental

17394 Evergreen

8252 Wisconsin Street Apartments

Unit 1

Unit 2

Unit 3

Unit 4

18632 Braile Stree

Flippers/Purchased Homes

2456 Hartwell

1920 Asbury Park

Sold Homes

12345 Happy Dance Lane

6789 Money Drive

You see my point!

Foot Note:

(I never use the COGS theory because I always had a CPA doing my taxes at the end of the year). All I cared about was how much money the property had cost me, how much I spent to fix it up, and how much I made when I sold it)

By listing each property individually as a class and each unit individually per building if you have a mutli-dwelling, you are able to print our reports showing you the income per building and/or unit less expenses, per building and/or unit, giving you your bottom line, per building/per unit.

The Report that will give you this running total is called a Profit and Loss Report by CLASS!

This report is your very best friend.

You want to know exactly how much money you spent on repairs for that building, and each unit inside the building, because tenants do damage to their units and by showing expenses per units, will be evidence proving that you did indeed take care of that repair that the Tenant is telling the courts that you didn't take care of.

You want to see how much money you spend solely on a building, like a roof repair, verses how much money you spent on tenant damages, that they did themselves to the building or the unit. Evidence...Evidence...Evidence. And also you need to know what homes are making you money and what homes you should sell.

I never setup my flippers as COGS. We are landlords and investors and we don't have Inventory. I don't consider my flippers to be Inventory. COGS is always an Income Account. Therefore I want all my expenses pertaining to that property to show up as expense accounts and not as a negative income account.

Once again since I have a CPA handle my taxes, I just want a good reporting system that tells me what I need to know and at the end of the year give my CPA all the things he needs to know.

So I hope this helps and I wish you well in all your endeavors!

Nancy Neville