All Forum Posts by: Alan Caceres

@Alex Tang I have to agree with Jake, if it's just one property, you don't need all the extra expense of using specialized property management software. It should be simple enough to just do it on a spreadsheet. If you just want to track cashflow, do your accounting on a cash basis. If you want to track performance, do your accounting on an accrual basis. If you don't want to think about that stuff and feel you can stomach smaller cashflow for one property, go with a property management software like Beaver.

If you need help with doing your own accounting feel free to message me, I love chatting about real estate and bookkeeping.

@Luis Cote is there a reason you prefer to Quickbooks Desktop over Quickbooks Online? If you need help on either feel free to reach out.

@Camille T. It really depends on what you're looking for in terms of bookkeeping. If you're just looking for someone to enter transactions into a spreadsheet a regular VA would be fine. If you're looking for more of a person who can also help you forecast the trajectory of your investments, you should go with a virtual bookkeeper or accountant.

Hi @Mayer M.

What kind of bookkeeping assistance are you looking for?

There are many bookkeeping and accounting software sites for you to choose from. It all comes down to; what benefit you are looking to gain from it, whether it meets your business needs, whether it meets your budget, how much hand-holding you need, and how it fits into your daily productivity. 

Quickbooks, Xero, and Freshbooks are bookkeeping and accounting sites that are tailored to accommodate any type of business, the interface isn't really friendly for someone looking for a quick overview of their properties.

Appfolio, Beaver, Buildium, Yardi, Rentroom, etc. are all property management sites that provide bookkeeping and accounting features tailored specifically for managing multiple units/properties, they also provide features such as maintenance request tracking and tenant screening.

If you're just looking to keep track of the financials of your units and nothing else I'd say Quickbooks, Xero, or Freshbooks. If you're looking for a more RE friendly site that provides benefits outside of knowing how much your units are making you, I'd say go with one of a property management site. I'd have to warn you though, some sites have minimum portfolio sizes, so YMMV.

@Amar P. There are numerous reasons to use cash or accrual basis when doing your books. Many people choose to go the cash method route because it is much more simple, but there are drawbacks to using either method. 

With regard to STRs, when using cash basis, you don't really get a good picture of how your business is doing and prepaid expenses can make your financial reports look really inconsistent; large income/expenses one month, then very little income/expenses in another. The accrual method of accounting helps smooth income and expenses out and provides a clearer picture of how your business is doing, which makes it easier for you to come up with processes to improve it. The downside to using the accrual method is it can be confusing if you're just starting out using it.

@Bob Smith finding a bookkeeper who isn't just data entry can be difficult, especially one who is familiar with real estate. There are many "bookkeepers" aren't really bookkeepers. They just know how use spreadsheets and summation formulas. A good bookkeeper should know both cash and accrual basis accounting and why use one over the other. They should know how to properly set up your chart of accounts, properly record asset depreciation, and be able to walk you through your financial statements to give you a clear picture of how your business is doing. 

As for a bookkeeper handling money, that should never be the case, as that would violate what's called separation of duties.

I know you stated you wanted simple, but Quickbooks actually has the ability to import credit card and bank info and it has a mobile app for real-time tracking. You can even take pictures with the mobile app to keep track of any receipts. It definitely can be a bit much for someone just starting to use it, but after getting used to it can be pretty straightforward. There is other bookkeeping software such as Xero or Freshbooks that could also work if you preferred those.

Welcome to BP Aaron!

Since you're from the Bronx, do a search for Bronx Mastermind. It's run by @Cesar Rojas. There is usually one every second Wednesday every month. Hope to see you there one day!

@Michael Noto Would love to learn more about this lender you work with. I'm looking at a property in NJ and would like to work with a local bank there. Thanks in advance!