Overwhelmed with Bookkeeping. How to get organized/Back on Track

[Cassidy Burns]

Good Morning BP,

As Tax Season approaches, and this being my first full year of real estate investing, I realize that the one task that I personally am absolutely am horrible at and hate doing is bookkeeping. I have tired google sheets, quickbooks, writing everything down but I just can't seem to find a good system that works for me and/or that I can easily and systematically implement. I have hired 2 VA's over the past 2-3 months to input data into quickbooks and they haven't panned out either.

Do you have suggestions on a low cost yet effective way to get this off of my plate/have everything in one place?  I know I could have my accountant do this but it is extremely expensive for the 11 properties that I currently have. I do however plan to purchase 20+ units this year but feel as if I should get this system in place before I get in over my head.  

Any online platforms/property management platforms that are efficient for this?

Any suggestions are greatly appreciated. 

[Account Closed]

Everything in the world is mastered by knowledge, but one must WANT to study it in order to achieve that knowledge.  

The same thing applies to investors being landlords.  Do we just jump in without a clue as to what being a Landlord involves?  Perhaps.  Most of us do and pay a hefty price for the lack of such knowledge.

Keeping track of our finances in this business is just as crucial as keeping tenants long term.  If we don't know where we stand financially any time of the day, then we are lost. and we end up being confused, and not knowing where to turn. 

Choosing a software program to keep track of our finances is a tough decision.  There are so many of them out there.  But there isn't any software program out there (except QuickBooks)  that will allow us to CUSTOMIZE it personally for our Industry, or for US personally.  And since most of us use a CPA or should in this business to do our taxes at the end of the year, we want a software program that will benefit us all through the year.  This makes it easier for us to give our CPA a clean Profit and Loss Report which in the end SAVES YOU MONEY!!!!! Because CPA's charge usually by the hour or how much work it takes to figure out your finances.  QuickBooks makes it easier for everyone and that is why CPA's LOVE QUICKBOOKS.

You say you have used QuickBooks, and hired others to use it and enter data for you but with no success. That's because not many people, who are OUTSIDE of our Industry know how to use QuickBooks and this is a very crucial part of why people don't have success with QuickBooks. 

There are QuickBooks Experts out there, next to none, but they are not experts in our field.  Our industry is like none they've ever seen.  So it takes a QuickBooks Landlord Expert to teach you how to use QuickBooks and show you how to customize it just for you.  I know QuickBooks inside out, but I couldn't just jump into a Retail Industry and teach them how to set up their company 100%, because I don't know how they operate 100%.  Or teach a medical facility how to set up their company because I don't know the language or terminology to teach them 100%.  What I could teach them would be basic, and that's what you get when you hire someone who is not a landlord expert. You'll just get the basics and nothing more and it's not their fault. 

The bottom line is this.  Whether you choose QuickBooks or some new kid on the block, you're going to have to learn how to use it, plain and simple.  

I hope this has helped.

Nancy Neville