Tracking your expenses with the right tool will save you time and money, Whether you use QuickBooks for rental property or Landlord Studio.
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It goes without saying that accounting is not always the most crucial part of running a business empire. Landlords are aware that it can be quite difficult as anything, especially when you lack an efficient system to use. The best thing is that QuickBooks accounting software can help your accounting tasks for landlords-related rental properties much easier.
If you have looked for Professional Accounting Software Initially, you may have heard about QuickBooks. In today’s article, We will talk about how sustainable QuickBooks is for landlords and how it can be set up and utilized for rental property accounting.
How to Set up QuickBooks for Rental Property?
Setting up a Particular Rental Property can be a very easy Job. But setting up a rental property in QuickBooks can be a very difficult and complicated task. You need to adhere to certain steps to do it successfully.
Note: QuickBooks Online is a general accounting software that was created for all kinds of businesses. That is why different types of landlords prefer to use QuickBooks Online for their rental property management business.
Here are the steps to use QuickBooks for the purpose of Rental Property Accounting and Set up Your Account and begin Entering Rent Payments:
Setting Up QuickBooks For Your Rental Property
Step 1: Include Your Business Bank Account.
Step 2: Prepare your Tenants as Customers.
Step 3: Now Configure Your Particular Properties as Classes.
Step 4: Create Your Chart of Account with the help of Schedule E Categories.
Step 5: Choose Your Income types like (Pet Fees, Rent, Late Fees) as Products.
Step 6: Create Your Recurring Invoices for the Rent Payments.
To Add Rent Received
Step 1: Press on the Customers menu and Choose to Receive Payments to Start Adding Your Rent Receipts.
Step 2: Select the Cash Receipt Account from the list for the Accounts Dropdown list.
Step 3: Choose the right tenant from the Particular Customer List.
Step 4: Add the Amount of the Particular Rent Payment. In case you are entering the rent for just one tenant, Press OK and Save the Receipt. In case you have rent for more than one tenant, Choose Group with other Undeposited Funds to shift to the other Cash Receipt Entry.
How to Set up Multiple Rental Properties in QuickBooks Online?
The method of setting up several rental properties in QuickBooks Online is the same as above, however, there are multiple steps included in the process.
Say, for instance, an investor who owns a Single-family rental home along with a multiplex duplex. One approach to using QuickBooks Online for several rental properties is to prepare 2 different companies while the other approach is to prepare two separate companies.
Note: Prior to selecting a method and using the time to set up your particular QuickBooks Online, it is always recommended for an investor to talk to a real estate attorney or an authorized public accountant to comprehend better the advantages and disadvantages of every approach.
Several Properties under one Company
Step 1: Create a Company and then name the Company.
Step 2: Create a Chart of Accounts.
Step 3: Now list all the Rental Properties in the form of an Individual Fixed Asset to Enable the Property Values to Update Periodically and also the Depreciation can be cut down from Every Property.
Step 4: Add the Credit Card, and Banking, along with Mortgage Accounts Accessed for Clearing Operating Expenses, Acquiring Rent Payments, and also Financing Every Property.
Step 5: Now Configure the Particular SFR as a Class and allocate a name to it.
Step 6: Configure the Multifamily Property as a different Class and Allocate a Name to it.
Step 7: Configure Sub-Classes in the Multi-family Class for Every Property unit and Allocate Names to such units.
Step 8: Prepare Tenants like Customers with the help of the Name on the Particular Rental Agreement.
Step 9: Create Rental Income as Product and also set up Sub-Products for every kind of Rental Income acquired like Late Fees, Monthly Rent, and Pet Fees.
Step 10: One benefit of Adding Several Properties in the same Company is that a Combined Financial Report can be issued for the Total Rental Property Portfolio along with every Property Class.
How to Set up Individual Rental Companies with Several Properties?
Equipped with one or more rental properties is one way to create several rental properties in QuickBooks Online. The risk of adding transactions to the wrong tenant or property is cut down significantly and also the financial reports are better now.
But there are several steps included when creating two different companies along with a user will require to jump back and forth between organizations while reconciling or posting transactions.
Here is a run-down of the steps to set up two companies:
Set up a Single-family Rental Company
Step 1: Set up a Company.
Step 2: Create a Chart of Accounts.
Step 3: List the Particular Rental Property like Fixed Asset on the given Chart of Accounts.
Step 4: Include Savings, Business Bank, Credit Card, and Mortgage Accounts.
Step 5: Configure the Particular Property as Class.
Step 6: Now Set up the Tenant as a Customer.
Step 7: Create Rental Income as a Particular Product, with Sub-Products for every kind of Rental Income.
Set up a Multi-family Rental Company
Step 1: Set up a Company.
Step 2: Now Create a Chart of Accounts.
Step 3: Now list the Multi-family Property as a Particular Fixed Asset on the given Chart of Accounts.
Step 4: Include the Banking, Mortgage, and Credit Card for the Multi-family Property.
Step 5: Now Configure the Particular Property as Class.
Step 6: Now Configure Every unit in the Family as a Sub-Class in the Main Class.
Step 7: Now make Tenants Customers with the help of the Name on the Particular Rental Agreement.
Step 8: Create Rental Income as a Particular Product and prepare Sub-Products for Every type of Rental Earning Accumulated.
We hope that this article has resolves your queries about using and creating QuickBooks for rental properties. Still, if you seek any professional advice or help regarding using and creating QuickBooks for rental properties, Connect with Dancing Numbers team via LIVE CHAT.
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+1-800-596-0806 or chat with experts.
Frequently Asked Questions
What are the Benefits of using QuickBooks for Rental Properties?
Here is the list of benefits of using QuickBooks for rental properties:
• Easy to use: QuickBooks is extremely user-friendly in comparison to other kinds of accounting software. Not to mention, it has a set of intuitive designs for business owners even for those who lack an accounting background.
• Easy to Customize: QuickBooks boasts software templates that can be customized with related information and fields.
• Integration is Smooth: Integrating the QuickBooks accounting software is smooth, especially when you are sorting out your taxes. It is possible to add your credit card detail and bank account information connected with the rental property.
How to Record Rent Payments in QuickBooks?
Here are the Steps to Record Rent Payments in QuickBooks:
Step 1: Launch the QuickBooks Program. Now Select Customer: Job list from the Provided list Menu.
Step 2: Select the Customer and then Select Statement Charges from the provided actions Menu.
Step 3: Now Choose the Empty Field that is at the End of the Register.
Step 4: The Eent Amount is included in the field.
Step 5: Now select Accounts Receivable from the drop-down for Account and Choose Record to finish the Entry.