Can Landlords Use QuickBooks for Their Rental Properties?

QuickBooks has two variations—online and desktop—and each has its own fee structure. For instance, QuickBooks Online charges a 1% ACH fee, whereas the QuickBooks Desktop https://www.icsid.org/business/managing-cash-flow-in-construction-tips-from-accounting-professionals/ version charges $3 per transaction. If you have more than one rental property, it’s worth checking out other options that don’t charge an ACH fee, like Hemlane.

Quickbooks for real estate agents can give you valuable insight into how your business is performing month-over-month, which allows you to make informed decisions for the future. Consistently tracking your finances is the best way to build a predictable and sustainable real estate business. Analyze your business better with insightful reports, by simply linking your real estate transactions to your income and expenses. Track income and expenses, run reports, collect rent online, find and screen tenants, manage property maintenance, and more. Landlord Studio allows you to quickly and easily track rental income and expenses, generate professional reports, reconcile with your bank, and more. With Landlord Studio, you can automate time-consuming tasks and communications, such as rent reminders and tenant auto-pay.

How to Use Quickbooks for Real Estate: The Basics

Below are all the categories I use in my Quickbooks for real estate agents. While these categories have worked best for me, the ones you use for your own business might look different. Generally, using QBO for property management, you record transactions using the same method you would for any business with a couple of additional helpful steps. If you opt to use QBO for property management, it’s important to keep your company’s P&L separate from the properties you manage.

No monthly software fee will be charged until your 14 day trial is over. But if you want to use the direct deposit features, you’ll be charged per transfer. Next, select the appropriate property or unit from the customer drop-down menu. If it’s an expense for any of the properties or units you manage , mark it as billable.

An Emphasis on Customer Support

QuickBooks is the most popular financial software platform worldwide. Add in your License Renewal Date and add and remove any other columns, based on what you want to see here. BKPR LLC is an affiliate of TX-LW LLC, a leader in compliance and legal services.

Simply invite other users to join the software via email, including your accountant, if you have one. If you download the mobile app, you’ll be able to upload receipts from any expense. Realtyzam will automatically scan the digital copy of the receipt and link it to the expense. Use real estate bookkeeping the Customer types button to create types of customers for your business if you want to segment or distinguish one customer type from another. In the video below, I am going to show you how to set all of this up, and then we’ll run some reports so you can see this data in action.

The 8 Best Real Estate Accounting Tools of 2023

Use this number to see where you can cut back on your expenses next month to try and increase your income. Use the profit and loss statement to decide what the best use of your time and efforts is. For example, maybe you’ve been trying a new marketing strategy, and it hasn’t been paying off. Use your statement to decide to go back to what you were doing before or to try something new.

• You have to think about your business that way, at least if you want to use QuickBooks, even if you have only one rental property.
• A real estate brokerage isn’t really in the business of completing real estate transactions.
• The client is a real estate broker, and they have many agents that they work with.
• There are other factors to consider, such as user reviews, accessibility , and the availability of a mobile app and add-on features.
• If you need user-friendly accounting software that’s suitable even for beginners, look no further than Kashoo.

You can’t convert outdated profit and loss statements into accrual-like statements. These agents still need to use a cash based accounting method. For most real estate agents and brokers, Quickbooks Online is the way to go. There are some instances where Quickbooks Desktop is a better option. The reality is that people who are trained in Xero are overqualified for what a majority of real estate agents and brokers need. Starting a real estate business is easy compared to scaling it.