I am a fairly new investor will a shoebox of receipts that I need to turn into financial statements for taxes. I purchased Quickbooks Pro and I need to set it up to enter all my expenses and revenue. I bought 2 properties last year. One I fixed up and rented out. The other I have spent 6 months fixing up and will put it on the market this month.
Does anyone know what Chart of Accounts I should use? Will I enter my properties as fixed assets? Any help would be appreciated.
mcwagner (a CPA on here) is an expert at this, but he’s obviously VERY busy due to the time of year. We use the same program and he helped me set mine up. He’s also tweeking some of the stuff that I couldn’t figure out.
Here’s the basics:
You want to set up each of your properties as a separate class. Then you can use accounts like “rental income, maintenance, utilities, etc” and assign expenses in those accounts to a certain property class. I was having some problems getting the numbers to work for the original purchases, but he wanted me to set up a parent class for an address and then separate asset accouts for the property’s house, land, and depreciation.
Once you break your properties down by class and enter all the transactions, you’ll be able to run profit and loss reports by class and you can see how your individual properties are performing.