All Forum Posts by: Dee Dee Huey

I am not sure where you are located but here in S. Alabama most of the credit unions automatically open a savings account with every checking account you open. And most only require like $5-$10 to open each account. If you are thinking of implementing Profit First in your business, I'd be glad to share with you a list of Profit First friendly banks all over the U.S. Good Luck!

I would suggest you keeping your receipts from now on. I'm sure you've already thought of this, LOL. Be sure to write which property they are for on the receipt or you can file them in a folder for that specific property. Ideally it would be best to take a snap shot of those receipts so you will have them forever. The paper and ink they use these days for receipts fade over time.  Also, I would think that a report from your PM would be sufficient as well. Good Luck and hopefully no audit will come!

Definitely start keeping your receipts from now on. I'm sure you've already thought of this. And be sure to either write which property they are for or keep them in a file for just that specific property. Or you can take a picture of the receipt and file it digitally. That way it would ensure that you have those records for at least 7 yrs. Most receipts today are printed on cheap paper with cheap ink and they fade over time. I would also think that a report from your PM would be enough for the IRS but you can never be too careful with having receipts. 

I use QBO for all my real estate investors. I believe most use the Plus Or Advanced level. What's great about QBO is that 

is allows you to add classes to all of your transactions and will make it easier for you to run reports per property.

I agree, if you are very comfortable with Excel and know how to get your income and expenses from that, then no need for an expensive system. However, the last time I checked Waves is free. I don't know a whole lot about Waves but know of other investors who use and love it. If you sign up for QuickBooks under a bookkeeper, you can get it cheaper than if you were to go straight to intuit. Definitely keep your income and expenses per unit/house. you will need those numbers later. And don't forget to record your closing cost as well. Good luck with your new investment. I get the feeling this will not be your last one!

Great Questions, Justin. You've really thought through this process. The other have left great answers and I'm not sure I can anything else. 

They are right in you not needing a local bookkeeper vs. a virtual one. Both I'm sure would probably charge you the same unless either one of them has an office which means they have to cover their overhead.

I wouldn't be too caught up on price as much. I'd be concerned about the value and experience they can offer you. From my experience with caring for an investors books in the past who wholesaled approx. 350 houses, remodeled approx. 55 houses per year, and with their books in great order, I would spend approx. 1-2 hours a week which included payroll. 

One of the best things you can ask when shopping around for a bookkeeper is "How do you charge?" Meaning, do they charge by the hour or by the month. I would prefer someone who charged by the month so that way you would always know what your bookkeeping expense was going to be. And I'd ask them if they charge extra to have a phone call or 2 a month and if they would charge for extra reports. 

If you already have your financial system in place, then I would guess the bookkeeper would only need to do some minor clean up and there be no set up involved. But if you are brand new and maybe want to start tracking your finances in an online system like QuickBooks Online, then it might would take some about 2-3 hours to get everything set up. Bookkeepers should be on top of the latest and best apps for their clients. If it's to capture a receipt, integrate transactions, keep labor time or track inventory. 

And absolutely you MUST watch your finances like a hawk and they must be accurate. You need to always know what you're spending $$ on so you don't keep making the same mistakes. Plus you never know when you might need to produce your financial portfolio to someone for a loan or for someone to even purchase. Wouldn't that be great!

If you are thinking about hiring someone to care for your books, I'd spend at least an hour on the phone with them getting to them and letting them get to you too.

Hope all these answers help!