The Bookeeping World

[Nataly Llanes]

     As new investors my husband and I are learning as much as we can get our hands on before taking the plunge into our first rental, hopefully beginning of next year. 

     As we build our team, business plan, and organize finances we realize the tremendous importance of keeping tract of those assets and its financial. 

     So my question to you all is the following: 

-How do you keep track of your assets? Softwares?

    (QuickBooks, Buildium, Quickens, Excel?

- What was your decision based on when you made your choice? 

 Thanks in advance, 

                         Nataly 

[Gita Faust]

ONE RULE - Never, never enter journal entries in QuickBooks software unless it is for depreciation at the end of the year.

QuickBooks Online is not for Rental Properties. Even though my clients use them, they use excel and other reporting to make it work.

Free - let us say you spend time suffering the internet to learn (free stuff), would you know that it is going to work for you? My question is always been - how much is your time worth? vs paying someone to do the work or learn from them.

It is like saying go visit the IRS website, read blogs and file your own tax return. Why do you need an CPA or EA to prepare your taxes?  

It takes a life time of experience, education to learn, implement, analyze your financial reports and accounting. Hire a professional.

If you are reading this post view your Profit and Loss and Balance Sheet and see if:

- Can you file your tax return today? (Say you have to file tax return as of today)

- Can you get a loan with your reports?

- Do you know how much money you spend on each property?

- Do you take advantage of the 5, 7, ... year depreciation on your improvements?

- When you purchase the property, do you take a flat % of depreciation? 

If you said no to even one of the questions - you need to hire a professional. Remember it is not about the IRS or taxes - it is about you been PROFITABLE.

AND it all starts with QuickBooks - Learn it right - 

It is a lifetime investment. 

It is a one time investment. 

Make it a great Tuesday.

Gita Faust