Real Estate Accounting - Quickbooks Setup

[@Incomedigs]

Check out my End-to-End Quickbooks Training. www.incomedigs.com/reab ($50 off w/ code KZbin50)

[@gregbaker1562]

Great overview! Ive been fighting against the need to do my own accounting for years, and finally succumbed to the fact that my recent CPA and bookkeeper hires (and fires) just cannot produce reports that are useful to me on a timely basis. Thank you for creating this content!

[@Incomedigs]

You're welcome! So glad you've found the videos valuable. Definitely check out our end to end course. We dive into these strategies and much more in great detail! www.incomedigs.com/reab

[@DadDare]

thank you

[@heathertrinh8362]

Not seeing links to the videos mentioned in the description? Thank you for this video! Helpful : )

[@Incomedigs]

Thanks for the heads up! We'll add those links today. Thanks so much for watching!

[@Incomedigs]

Hi! The links are in the description! Adding in-video cards as well!

[@robertleonard6806]

On your free downloaded COA, why do the Names for lines 6-24 on your spreadsheet given the Type of “Other Current Assets” (OCA)and “Fixed Assets” (FA) and it looks like the same Names on lines 57 - 62 are designated as “Cost of Goods Sold?” Why do you use COGS instead of OCA or FA for some transactions?

[@Incomedigs]

@@robertleonard6806 Good question! This allows for a couple different and potentially interchangeable methods of logging transactions for real estate. You can potentially log expenses as COGS...In some cases it make sense to put them on your balance sheet via OCA or FA. Within our end to end course, Real Estate Accounting Bootcamp, I go into this in great detail. www.incomedigs.com/reab

[@LIL_E_03]

to clarify, are you saying to set up a specific rental property (942 Swart St) as a "Class" for the balance sheet AND income statement? or just balance sheet. currently i have an individual balance sheet account for each fixed asset and i record income/expense for properties using the property address as "Customer". I can see the benefit of the 2 dimensional balance sheet for fixed assets by using the "Class" function as you suggest. however, should i also start using Class instead of Customer to track income/expense for each property?

[@Incomedigs]

Hi! You can do everything I demonstrate in this video with Customer. The two dimensional chart of accounts should be used for both balance sheet and P&L. But that doesn't mean you need to make the switch to class. You can categorize your balance sheet transactions with Customer as well. Then you can display columns by "Customer" on your balance sheet. Customer or Class....the process above will work just about the same. Personally, I like using classes...but Customers will work just fine!

[@LIL_E_03]

@@Incomedigs didn't you say in another video that quickbooks severely limits the number of "classes" you can have? i think it was maybe 40? if you have 100 properties then wouldn't that mean you would have to use "customer" instead of "class"?

[@Incomedigs]

@@LIL_E_03 Yes...100% correct if using QBO Plus. If you are on QBO Advanced...the limit increases to 250. You would have to make this call depending on 1. Your QBO Subscription and 2. how many properties you will likely need to differentiate.