Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
My rehabbing and flipping business is really quite easy to manage in terms of book-keeping. It does not send invoices, do payroll, etc. We have income, expenses, assets and liabilities. These can be categorized for easier classification and reporting but conceptually they are very simple.
When I look at the accounting software available, it seems to me that they are too complex for my needs. Should I just create my own accounting software? I feel that it shouldn't take more than a week to come up with something very basic that should allow me to move away from Excel.
Or should I use one of the online accounting sites such as Clarity Accounting, Xero, Saasu, etc?
I wouldn't want to use a desktop application for this because I will have multiple users in different countries who need to access it. So any solution will have to be an online solution.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
16y
Once upon a time I used to use a program called "managing you money". Its since largely disappeared and I did switch to Quicken. I gave up after a couple of years. These programs are an incredible amount of work, IMHO. I went back to just using a spreadsheet.
Even for my RE business, I just use spreadsheets in combination with the functionality provided by the bank. I don't do nearly the volume of business you do, Vikram, so I don't know that this approach scales very well.
Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
16y
Jon, I totally agree with you about Quicken and Quickbooks. Every time I have tried it, I have found it to be too complicated for my needs. I am using Excel spreadsheets right now. As you correctly observed, it does not scale very well. In addition, I now have a bookkeeper and she needs access to the accounts and so do I. So an online system works better for me than a local solution on my desktop.
I think creating an accounting program is actually quite easy for the rehab business. But I would rather use something off the shelf than create software. I am looking into the following online accounting services:
Flipper · Phoenix, AZ · Member since 2009 · 973 posts · 679 votes
16y
I created all my own software for managing our properties, since the professional ones are outrageous. I'd recommend finding a web programmer to build you exactly what you need.
Once its up and running on your own server, you won't need to continually pay for access or monthly fees.
I may be able to recommend a guy, who has worked on major projects for petsmart and other companies, but I have no idea if he'd have time or what the costs involved are.
Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
16y
I was thinking along the same lines, Marc. My needs are fairly simple and specific and the off-the-shelf software seems to be designed for all possible types of users and is too cumbersome to use.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
V, I used Quickbooks and didn't like it, but I had multiple accounts as well as properties. I went back to a manual system and I was putting in too many hours doing my books. I sugget you check into MAS 90, it is a professional system, can be expanded to any business applicationg and has a real estate module, it is not mcu of a pain, but any system is a pain, IMO. But necessary. After you use it for a year, you'll be amazed. It is not cheap, but it is a system that you can start with and take to a multi-million dollar operation with full tax modules. I'm sure Charles would be familiar with MAS 90, maybe he can throw in 2 cents worth. You will need a basic accounting background with MAS 90, is not enter you deposit and enter your utility bill, but it is worth going to, IMO. Otherwise, sub it out and let someone else do it.
Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
16y
I do have fairly advanced accounting background so I do not mind the learning if, once learnt, it is easy to use.
Jon, Google Docs does solve the sharing problem but not the scaling and reporting issues.
I have found a great review of accounting software and am going through it now. I will post my final decision on this thread in case any of you find it interesting.
One of the essential things for me in an accounting software would be its ability to handle multiple cost centers, such as departments, divisions, etc. In my case, of course, each cost center is a property that I flip. I am finding that this one functionality limits my choices greatly because most of the really easy-to-use software are not geared for multiple cost centers.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
MAS 90! Having a managerial accounting knowledge will be sufficient, basic slotting of acounts, basic cost accounting and basic taxation, you need to make the decission to slot entries, after that, it pretty well maintains and flows itself. It is a professional accounting system. Doubt you would have any problem in the process...good luck with your project..
Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
16y
Bill, it looks like MAS 90 works on a local server like regular software. I am trying to find a solution that works on the net so that different members of my team can access it from different locations. Let me know if I am mistaken about MAS 90.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
V, I'm not a techie guy, I'm sure the system works at multiple stations if you have the right modules. I think you can enter a system remotely, like checking your mail, I know a CPA who had it and he accessed his away from the office several years ago...don't know how it works, you probably have a better idea...you will need several modules, suggest you check with a dealer....don't know, it might have changed now....good luck again.
Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
15y
Here's a quick update on the online accounting options. It appears as if there are three categories of online accounting solutions: (a) those focused on very small businesses, (b) those focused on small-to-mid-sized businesses and (c) those focused on somewhat larger businesses.
The services that focus on the really small businesses are not suitable for my use because they do not support cost center reporting, which is essentially for a flipping business. These services, if you are interested, include Clarity Accounting, FreeAgent, Outright, WorkingPoint, etc.
For a business that needs a more complete accounting solution and yet remain simple, the choices are Xero, Saasu and Kashflow. They are normal double-entry based systems that support conventional accounting features (GL, etc.) and yet maintain a simple interface. They also offer the ability to have multiple users each with separate privileges, which is important.
A somewhat different variant of the small business solutions is Quickbooks Online. This seems to be as full-featured as Xero and Saasu but the customer support is like that of a big company: either I was unlucky with my choice of agent or the company has a policy of providing opportunities to the mentally handicapped.
Once your business becomes complex enough to step up to the next level, you have more enterprise-standard solutions such as Intacct, Netsuites, etc. These are one level below the ERP systems being used by larger companies and also easier to use. I particularly like Intacct but I think it would be overkill for my business.
My plan right now is to try out Kashflow, Xero and Saasu first and see if one of them might do the trick. If not, I may have to deal with QB and its retards.