Tag: bookkeeping

Top 5 Reasons to Ditch the Spreadsheet

Today’s topic is the top 5 benefits of ditching the spreadsheet and move to a computerized accounting system. For content purposes, QuickBooks Desktop is the accounting software I am talking about. I want to make one thing very clear about this post…..it is specifically created for Landlords. There may be some overlap into other industries but this is based on my 6+ years as a bookkeeper for landlords who manage their own units. Y’all know I like to dive right in. Excel is a great analytic tool to help compile, sort, calculate, and analyze LOADS of data. It is employed by large and small business owners alike. What makes it such a great tool is that you can do quite a few things with it. Create dashboards, databases, and turn it into a low-cost accounting system. For the former uses, you will hard-pressed to find any as user-friendly and priced so well. For the latter, there are a few reasons why Excel is not the best choice for accounting. Landlords this is especially true for you. • How many sheets do you have for your Rental Business Workbook? • How much time does it take to make changes to the

QuickBooks for Property Management – Security Deposits

Security deposits are paid by the tenant to the landlord. It is meant to cover any damages done to the property by the tenant beyond normal wear and tear. As landlords, I am sure this is not news to you. What may be news to you is how to handle these payments in QuickBooks. I am going to share the method I recommend because of its ease of use. When receiving a security deposit from a tenant, I treat it as a credit to the tenant. I do this because it allows me to see, at any given time, how much their deposit is and it makes it easier to discern how much of it needs to be returned to the tenant after any charges have been accessed. To use this method, Tenant CANNOT be set up as jobs under a property address. They MUST be set up as a customer. Under these conditions, tenant security deposits are handled with the following steps: Receive the payment – There should be no invoice to apply it to. Deposit the payment – Tenant Security Deposits SHOULD have their own bank accounts. Some states require this. I think it is just good practice