Investor · Charlotte, NC · Member since 2008 · 217 posts · 12 votes
I feel that my old fashioned way of tracking expenses needs to come to an end. I just put things in a spreadsheet and hand it over to my accountant.
However, I don't track a lot of things, like deposits that I get returned, loan proceeds, and other deposits into my account that the IRS might questions, even though they are legitimately not income. I'm getting worried that I won't be able to figure out what some of these deposits are years later if I get audited.
I have 17 rental units, and I flip some properties throughout the year. I make a lot of deposits on houses that I don't get, and I constantly have money going back and forth even if it isn't producing income.
SO MY QUESTION IS: Will Quickbooks do what I need it to do? I am clueless about what it even does. I was thinking about buying quickbooks 2012 for mac, since there arent many other big name programs for mac. What are your thoughts?
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
14y
Quickbooks is sort of a combination between a database (keeps all kinds of records and allows you to extract reports) and a spreadsheet / checkbook register (allows you to have a running total for your varied accounts). One very key thing is you can have many different accounts for different purposes, and it will have a record of whatever you entered. Another key thing is everything has to be entered; even if you don't quite get it right when you first enter something, you make yourself a little note to ask your CPA how to do it so it is properly entered.
And right about now, you would be using it to produce a 1099 report for all vendors you used in the last year ...
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
14y
Learning QB was one of the best things I have ever done. It is so much easier than using a spreadsheet, not to mention you can create all kinds of reports, look at visuals of your business over time, etc. The initial setup can be a little confusing and there is a learning curve, but once you get it setup, it is quite easy to use.
Investor · Charlotte, NC · Member since 2008 · 217 posts · 12 votes
14y
Ok so it sounds like its time for me to just get quickbooks then.
When someone says they will 'do your books' what does that actually mean? Do they go through my pile of receipts and enter them all? How would they know what is what? Seems like it would require a lot of training?
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
14y
Dan, if you were to hire someone to do your books it could mean many different things depending on the person. You would probably want someone to set up your QB (meaning create your chart of accounts and get everything started). I have not hired a bookkeeper, just an accountant who gives me guidance and assists me during tax time, so I cannot provide much info on that. I find that entering my own books is simple and keeps me very in tune with my business.
Contractor · Atlanta, GA · Member since 2008 · 978 posts · 985 votes
14y
Quickbooks is great. Premier is the only really useful version if you're flipping, though.
If you have a background in accounting, figuring out quickbooks isn't hard. If you don't have a background, get someone to explain it to you the first time around. The example companies can be very helpful.
Investor · Plano, TX · Member since 2011 · 84 posts · 45 votes
14y
I plan to switch over to quickbooks this year, but haven't had the time to sit down and learn it. Does anyone have any good recommended reading material (web/books/etc) in learning how to use QB for their real estate investments?
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
14y
I am learning Quickbooks better this year. Previously we have paid bookkeepers, but I find doing it myself allows me to track expenses better. I also agree that it is much better than using a spreadsheet. The trouble is finding the time to manage it!
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
14y
Anthony Y. I used the intuit community for help in figuring things out initially and had to make a few calls to an accountant friend of mine. If you Google "Quickbooks real estate" you can find some excellent posts by QB experts on the intuit community. I would highly recommend running things by your accountant once you get the initial setup complete, as they are likely to have some tips for you and can give some specific advise since they will be working with you down the road.
Investor · Cleveland, OH · Member since 2011 · 603 posts · 130 votes
14y
Like you, I was resistant to stop using my spreadsheet and get on quickbooks. I switched accounting offices so I was forced into it.
At first I was using both, but after several months of dealing with quickbooks and watching some online tutorials, I made the switch and couldnt be happier.
It is somewhat of a clunky program, but have a CPA set you up and make sure you can ask him questions as you go.
Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
14y
Dan, You can probably learn if yourself and you can check in with your accountant to make sure things are right. This allows you to save money by doing it yourself , but still having your accountant by your side. Until you go receipt by receipt you won't realize how much money you could be wasting.
When someone say they will "do your books" yes that means they will go through all the receipts and keep track of everything. They will make sure everything goes into the correct accounts.
Quickbooks is a great program and I highly recommend it. Many of my clients use it as do I.
-Steven the Tax Guy
Your guide to IRS laws, rules and regulations.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
14y
Like everyone else, I highly recommend QB. That said, it's not simple to use if you don't have any accounting knowledge and don't understand the basics of ledger/journal entries (I have an MBA and I still have to ask my CPA questions about how to enter some types of transactions :).
So, if you really aren't inclined to do it yourself or to spend the time learning, I agree with Steve L about hiring a bookkeeper who you can hand your receipts to and him/her take care of the data entry.
Investor · San Ramon, CA · Member since 2011 · 1k+ posts · 569 votes
14y
What does QB offer that GnuCash (free) doesn't?
I haven't figured out all the ins and outs of the reports (way too many of them) but for basic accounting it seems to keep everything straight for me. It even reset the profit meter on January 1st so I get a constantly updated picture of the current year at the bottom which I thought was cool.
As to accounting, do a few google searches and you'll learn accounting pretty quickly, definitely not rocket science. Granted I took a class in high school (hey, I was bored) and have an MBA, but I stay by my assessment.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
14y
Originally posted by Nathan Emmert:
What does QB offer that GnuCash (free) doesn't?
I've never used GnuCash, so I don't know anything about it.
But one big advantage of QB is that many/most accountants already use it, so when submitting annual tax data, being able to give a QB file is likely going to make your accountant's job much easier.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
14y
Originally posted by J Scott:
Originally posted by Nathan Emmert:
What does QB offer that GnuCash (free) doesn't?
I've never used GnuCash, so I don't know anything about it.
But one big advantage of QB is that many/most accountants already use it, so when submitting annual tax data, being able to give a QB file is likely going to make your accountant's job much easier.
I agree with J Scott, and I'll add another point. If you are paying for accounting services based on time that the accountant's staff spends on your data, then you may end up paying more over time for the free software than for the commercial software - due to the accountant having to bill you additional time for converting data from some less common format into a more mainstream format.
The version of QB that I have is a few years old and cost maybe $150 and is still useful to this day (and will be useful into the future too); one hour's worth of accountant time will far exceed that.