All Forum Posts by: Angie Keefe

Hi Benjamin! I would highly suggest finding a bookkeeper who specializes in REI as our industry is a different animal that a regular business and the bookkeeping is a bit specialized as well. We use RentManager for our portfolio as well, however we also use QuickBooks Online for our overarching accounting software. I also use QBO for my REI bookkeeping clients. Feel free to reach out if you have any questions.

Personally I think both are important.

The first one to hire would be the accountant. Focus on finding a good REI focused accountant. You can hand them over all your information to organize at tax time and their staff should be able to organize everything and get your taxes filed.

A separate bookkeeper is just as valuable. Once your portfolio gets so big, you will need organization of your financials not only for tax time but also for your day to day, month to month decisions. A good REI bookkeeper will help keep everything neat and tidy throughout the year so you can make educated decisions in your business, potentially creating more profit and less headaches. You will also be less likely to miss opportunities for tax deductions, etc, because you've been tracking all along rather than pulling everything together at the end of the year.

A CPA would possibly have a bookkeeper available. However I believe it’s great to have two independent sets of eyes (in addition to your own) on the books to make sure everything is accounted for and running smoothly. If you want to discuss bookkeeping options further, feel free to reach out!

Hi Tyler!  I use QBO to keep track of my properties and do this for my bookkeeping clients also. If you have multiple LLCs, best practice would be having a Plus subscription.  As you said, this allows you to track LLCs (locations) and properties (classes and/or customers).

If you only have one LLC and don't need entity tracking, you could get a lower subscription and categorize your properties as ‘customers', then units and tenants would be sub-customers.

Simple Start would allow you to invoice your tenants (if desired through QBO) and produce basic reports. You can always start with the Simple Start subscription and upgrade if you find that it isn’t meeting your needs.  

Just as others have suggested, you can but not necessary.  And extra credit cards could be hard to scale as you grow. You can keep track of which expense goes to which property through your accounting software (even a spreadsheet would work).  Write the property on the receipt and keep a digital copy and the hard copy.

Quickbooks Online is a good software for both receipt capture and organizing what expense goes with which property.  You can scan the receipt with your phone using the QB app and it loads directly to the program.

Hi Rene!! Congrats on your growing business!!! We use Quickbooks Online for our main accounting software. Our business has multiple LLCs and properties. We currently use Rent Manager for our property management software for our mobile home parks and other rentals, etc, but use QBO as our main accounting books. QBO isn't made for REI out of the box, however, it is an amazing tool and really has amazing reporting when set up correctly.

I am an REI bookkeeper as well.  Please reach out if you’d like to connect. 

Hi Karina! If you're willing to continue to do the bookkeeping yourself, there's several wonderful options on courses you could take for learning how to do RE bookkeeping. You're right, REI bookkeeping is a little different and it's good to have your REI books set up properly.

If you hate bookkeeping and would like to pass it off, I'd love to have a chat with you! I am a REI Bookkeeper and I also am an investor

Reach out if you want info on either. Congrats on your growing business and best of luck in whatever you choose!

Hi Brody!

Yes, QBO can take care of all of this and help you keep all that straight! You can add to your Chart of Accounts to account for owner contributions and movement of money between LLCs to help with the funds that flow from one account to another and for funds that enter the business with personal funds. I do this with our own REI business and clients. As far as automating this, I'd like to hear if others do this. I wouldn't necessarily want that, at least with where QBO is currently with automations. QBO automations are great and while you can use it some, REI is tricky because there are so many moving parts and details to account for. It's really good to have a set of eyes (you and/or a bookkeeper) to make sure each transaction is going to the right LLC and/or property and is accounted for properly. In doing so, you do get great property and entity specific reports.

Quote from @Taylor Cook:

Have a family member whose health is rapidly declining. She runs all of the books for her multiple investment properties as well as her assisted living business that she owns. She essentially needs to bow out and have someone come in and take over. There is a LOT that needs to be fixed/adjusted as things have not been correct for a while. Essentially looking for someone to come in and take over the books and payroll (Quickbooks for both) as well as maintain this work from here forward. 

TIA! 

Hi Taylor!  I’m so sorry to hear about your loved one’s failing health.  Feel free to send me a DM.  I am an REI bookkeeper, Quickbooks Online Proadvisor as well as an investor myself.  I’d be happy to take a look to see if I could help. 

Hi Shane! My advice would be to find a bookkeeper that specializes in REI. REI is a different animal than other small businesses. If I can answer any questions for you, feel free to reach out! All the best to you in your search and in your business!

Quickbooks online could work for what you need.  The Plus subscription would allow you to keep track of each property/project and produce reports for them individually in addition to keeping track of the entire business as a whole.  This could include keeping track of the construction holdback.  We use this in our personal flip and rental business and also in my bookkeeping business with other clients.  Good luck to you in your search!