Accounting for multiple properties

[Christen G.]

I plan on putting a call into my tax preparer as well about this, but figured I'd ask you all to start:  My partner and I have 2 multi-families: a duplex and a triplex. We're still getting our feet under us and systems in place (and working on our first eviction - hooray) and my question is if you think we should have separate deposit/checking accounts for each building?  A little background:

These are B+ properties whose tenants (when they pay) typically pay in the form of a mailed cashier's check. We're trying to get them on board with bill pay/smart phone transfers - but as they're all inherited tenants we didn't screen them and the previous owner was fine with pony express. We have their deposits in a separate savings account.

Do separate accounts help at all come tax time or for other reasons? Or is it just an option/systems preference?

[Account Closed]

Keep things simple.  Many new investors think too much.  LOL  They make things harder on themselves and they end of spending lots of money.

With QuickBooks you are able to have one Business Bank Account, (or more if you want) but only one is needed per company. 

Then you have the Class Feature in QuickBooks, which allows you to link each property to income received and expenses paid out,  for each individual property, and this includes your office expenses.  So there is no need to have a bank account per property.  It is over-kill. 

QuickBooks keeps it simple.  But, because everyone needs a little bit of help with every software we purchase, we need to learn how to use it.  Once it is used, you are good to go, and everything is done quickly, and with very little time entering in your data per day or week or month.  

QuickBooks will  make it easy for your CPA to do your taxes, which of course saves you money. The more work they have to do to figure out what you're doing, the more they will charge you.  

Nancy Neville