Thursday, July 11, 2013

How to Use QuickBooks to Track Real Estate Properties

Accurate record keeping helps you to see how well your company is doing, but also is a way to bring in more investors or get loans from banks. How do you track real estate in QuickBooks? Specifically, how do you track properties that are being leased out to tenants?

Using classes to track expenses and income for properties is a great way to manage your business. Here is how you could setup your classes.

Tracking invoices, bills, even line items using classes will help generate specific reports that can help an investor. Classes allow a user to see P/L (Premier can show balance sheet for classes) for each class, this can be invaluable for the investor who would like to see which property is profitable and which isn’t. This is a great way to track property if you are a property manager or you manage property for others. Follow this template to see how to setup your class list:

Name of Owner of Property:
Address of Property:
Unit 1 (2nd floor etc...)
Unit 2
OR
Address of Property:
Unit 1
Unit 2

Setting up your customer list also allows you to pull additional reports and helps during tax time. If you rent properties out, you can structure your customer list like this:

Name Of Tenant:
Address of Property
OR
Name of Owner:
Address Of Property:
Name of Tenant and Unit/Floor #
Vacant and Unit/Floor #
Address of Property:
Name of Tenant
Vacant (this tracks what is spent to maintain house when vacant)

It all depends on your personal preference. Please consult with your accountant to determine what tax information you need to record and track. Using Jobs and Classes are sure fire ways to improve accounting and managing of your company’s finances.