In the short term rental riches will discuss investing in real estate with a specific focus on short term rentals quick action items to wire. Scale your portfolio I’m your host Tim Hubbard.

Welcome back everyone to the short term rental riches podcast thanks for joining me for yet another week this time we’re gonna talk about book keep being done done done. Bookkeeping for a lot of people is one of the least favorite parts 40 percent of business owners say that bookkeeping is actually their least favorite part about running a business and for me I gotta say I love the numbers but I know Michael little tedious bookkeeping that that much either so I’ve been using quickbooks online for quite a while now and that’s what I want to talk about today how can help us with our rental business with our long term rentals and our short term rentals couple little tips and tricks that I picked up along the way. How we can set it up and just some of the real nice features that you’ll find in there if you’re not already using that so let’s jump right in you know they say you can’t manage what you can’t measure and in my early days of investing in real estate I used to use excel sheets and lots of excel she’s trying to track returns and track expenses and I was very diligent about it but it was a pain in the **** and it is so much easier now I can click a button and run a profit and loss statement will get in the some of my favorite features here in a second but I just want to talk about sort of the evolution of bookkeeping in your rental investment journey because it starts off pretty easy right you get your first property you have rent come in and you have few expenses going out it’s not that complicated now if you change that rental property to a short term rental it’s gonna get increasingly more complicated because you’re getting lots more transactions come in and and lots more going out instead of having one rent payment at the end of the month you might have 10 deposits from short term rental O. T. A.’s online travel agencies like Airbnb or homeaway and so they’re coming in from more spots in there come in more frequently now when you start adding more and more rentals especially short term rentals things get exponentially more complicated there’s more to track so it’s better to get it all squared away in the beginning and set up a system so that you can keep things organized and for me quickbooks is made that more simple before we jump into quickbooks so one of the steps that you might want to take or might want to consider is just having a different account for each of your properties. And you can open them up with the same bank and if you have multiple properties in an LC like we talked about last week then you can have just one account for that but quickbooks allows to sort all the transactions out and that one account pretty easily so the more properties we get the more but given we gotta do that’s just plain and simple so let’s talk about some of the features the quickbooks has to help us with all that well first of all all of those different accounts that you have business checking accounts and different credit cards that you may have for properties are different L. seeds you can link that directly into a quickbooks profile and I’m talking about quickbooks online they do have a desktop version I use the online one I know what makes some people little and just kinda iffy having financials and stuff like that online but you gotta remember that quickbooks is designed for accounting it’s used by thousands and thousands of accountants and so security is high on their list if there were some sort of breaches and you know people wouldn’t be using that cell I trust that I’ve been using them forever my counts use it and by linking your external accounts into you still have to plug in all of your username and password so it’s secure on that in 2 but by having all of your accounts linked into a quickbooks pro file and I’m gonna leave a link for you guys in the show notes to quickbooks online if you’re not already using it where you can check out the different plans and some of different prices it starches levels like 12 Bucks a month and then it can go up from there but the time that it saves you oh man totally totally worth it in my opinion I would have a different quickbooks profile for each L. L. C. but you don’t necessarily need different quickbooks profile for each property because they have a cool little feature in there that’s called a class and I’m gonna talk about some. These features they’re really not complicated set up and they have lots of quick little videos they can walk you through online in this is if you’re not using a bookkeeper that set it up for you as well the beautiful thing about it is that you can share it easily with a bookkeeper or CPA sell my bookkeepers go through there all all month long and at the end of the year we’ve got everything organized I just share it with my CPA and boom they’ve got it so. I use the amenities to dread the end of the year trying to just make sure I didn’t miss any receipts and you know was taken advantage of all my expenses but by having your accounts linked to directly into quickbooks every transaction that you make goes into that profile whether it’s business related or personal and you can simply mark transactions is personal if they’re not related to the business I have the related to your business or a specific property then you can use that cool little class feature and separate in that way and then at the end of the month of the quarter whenever you want you can run a report specifically by classes it might sound a little complicated but honestly it’s super super easy and a lot of our transactions Israel saying busters are regular rent we pay our mortgage every month we have utility bills each month and quickbooks will actually recognize transactions that happen more than once the auto recognize them so that once you set them up initially it will put them in appropriate place going forward and course you can double check and added all these things but has tons and tons of really cool tools to help you with your bookkeeping and you’re counting your contractor payments for example is another tool that’s integrated into quickbooks so anyone that your pain intend I need 9 which in the US is anyone that you pay over $600 a year you’re supposed to give them a 1099 at the end of the year so I’m not a CPA double check all this with your tax professional and whoever’s helping you but they make it really easy on quickbooks to track your contractors and even set to send them an invite so that they can fill out the W. 9 form which is what you need from any contractor you’re paying over that limit where they can set it up fill it out and it’ll go right back in your quickbooks with. The end of the year when you have to file this 1090 nines you can do that really easily as well. You can integrate your time tracker with that so I mentioned T. sheets a few times in prior episodes that we use to manage our housekeepers that we pay by the hour and you can use it for maintenance people anyone you’re paying by the hour you can integrate T. sheets directly into quickbooks as well she can track your contractor payments easily you can track anyone you’re paying by the hour easily all of your income and expenses you can track really easily just being linked right up to your cards you can run reports really easily so if you’re shopping loans and I am a lender or mortgage brokers asking you for a year to date statement or how last year did you can easily run those reports and somewhat tons of detail or some with just a summary you can search transactions really easily sell by date to or by amount or by description you can share this with your bookkeepers Anderson yeah as I mentioned before which is one of the coolest parts because at the end of all this it you know when we keep growing and we can’t do everything ourselves so by using tools that allow us to easily and securely share our workload it just makes things a lot easier so check it out you know especially if you don’t like bookkeeping light like idle and that’s a lot of us business owners and and entrepreneurs and we love numbers but a lot of times we don’t like all the little tedious stuff so this can be a huge help if you’re not using it already and again I’ll leave a little link in the show notes just check it out I think they have you know some free trials like a lot online software does and you could I guess before we sign off here today I mean you can use this for your personal stuff also so if you’ve got a full time job and you’re doing real estate on the side you can include all that too and just separate that out by a. Class and then you don’t have to have a bunch of different quickbooks accounts you can still just use one cell to check it out if you’re not already using it save yourself from creating spreadsheets I mean this offer was designed specifically for bookkeeping and accounting and they spend millions and millions of dollars on improving and it’s constantly being upgraded so give it a look see and I think you might find it can be a huge help for you if you’re not already using it. Until next time hope you have a wonderful day. Want to get on the fast track to financial freedom through short term rentals what all searching the properties you. You want to make sure that you fire the right. I want to give you my. Yes there is no charge to you for being one of our subscribers the rest methods.com that’s R. E. S. T.. Dr.

RELATED PODCAST EPISODES

• Episode 62: Professional Tax Advice From My CPA – Part 2
• Episode 61: Pro Tax Advice directly from my CPA (part one)
• Episode 56: Short-Term vs. Long-Term Rental? How Much Does it Really Cost?
• Episode 39: A Password for Everything! How to Manage Them All Effortlessl‪y
• Episode 33: When Should You Put Your Properties in an LLC‪?‬