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Excel vs. QuickBooks Desktop: Why Landlords Should Make the Switch!

Introduction:

👋 Hey there, Landlords! Ready to take your rental business to the next level? Say goodbye to spreadsheets and hello to QuickBooks Desktop! In this post, we'll explore the top 5 benefits of ditching Excel and embracing computerized accounting systems, with a special focus on QuickBooks Desktop. Let's dive in and discover a whole new level of efficiency!

1)Simplify Tenant Invoicing:

📝 Say goodbye to manual calculations! QuickBooks Desktop automates invoicing, making it a breeze to determine what your tenants owe. Generate professional invoices effortlessly, and wow your tenants with a comprehensive rental history statement they can show off to future landlords or lenders.

2) Eliminate Double Data Entry:

⚡️ No more wasting time on redundant tasks! With QuickBooks Desktop, input your data once, and it automatically updates related records, reports, and accounts. Say hello to time saved and goodbye to tedious double data entry.

3) Bid Farewell to Math Errors:

➕📉 Forget about formula blunders! QuickBooks Desktop ensures accurate calculations without the headache of spreadsheet errors. Say goodbye to manual error correction and hello to peace of mind.

4) Powerful Reporting Features:

📊 Unlock the power of reporting with QuickBooks Desktop! Track liabilities, expenses, assets, revenues, and equity effortlessly. Generate Balance Sheets, Profit & Loss Statements, and more with just a few clicks. Simplify tax preparation and reduce prep fees by sharing comprehensive reports with your tax preparer.

5) Streamlined Rental Property Management:

🏡 Manage your properties like a pro! QuickBooks Desktop offers features like classes, allowing you to easily track and generate property-specific Profit & Loss Statements. Say goodbye to complex spreadsheets and enjoy a seamless experience for your rental business.

Bonus Benefit: ✨ QuickBooks Desktop saves you from spreadsheet design headaches! No more spending hours creating and modifying complicated spreadsheets. Focus on providing the data, and let QuickBooks Desktop handle the rest. Imagine the time you'll save for more important tasks, like analyzing deals or spending quality time with loved ones.

Conclusion:

🚀 It's time to bid farewell to the limitations of Excel and embrace the powerful features of QuickBooks Desktop. Simplify tenant invoicing, eliminate double data entry, and ensure accurate calculations. Enjoy robust reporting capabilities and effortlessly manage your rental properties. Say goodbye to spreadsheet struggles and say hello to increased productivity and peace of mind.

Ready to level up your rental business? Explore the wonders of QuickBooks Desktop and experience the transformation firsthand. Get in touch with AMH Bookkeeping LLC for expert guidance and maximize your success! 💪🏾💰💼

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Landlord Bookkeeping - Managing Tenants

Level Up Your Landlord Game with QuickBooks Desktop and Statement Charges! 💃🏾🔥

🎉 Hey, Queens and Kings of Real Estate! Are you ready to slay your landlord game and conquer the world of tenant management? Well, get ready to upgrade your hustle with the powerful combo of QuickBooks Desktop and Statement Charges! 💪🏾✨

Benefits of QuickBooks Desktop:

🔹QuickBooks Desktop is your ultimate secret weapon for managing tenants like a boss. Here's why it's time to get on board:

1️⃣ Streamlined Onboarding:

🚀 Say goodbye to tedious paperwork! QuickBooks Desktop simplifies tenant onboarding, making the process smooth and effortless.

2️⃣ Tenant Information Management:

📋 Keep track of crucial tenant details like rent charges, payments received, and security deposits in one centralized place. No more scattered notes and sticky reminders!

3️⃣ Efficient Rent Charge Management:

💸 Create statement charges for rent in a snap! QuickBooks Desktop allows you to automate rent charges for all your tenants with just a click. Cha-ching! 💰💃🏾

4️⃣ Time-Saving Memorized Transactions:

🧠 Memorize those rent transactions, honey! Save yourself the headache of manual data entry every month. QuickBooks Desktop remembers the charges for you, giving you more time to slay in other areas.

 

Statement Charges for Move-In and Move-Out:

✨ Now, let's talk about the real magic – Statement Charges! Here's how this feature can level up your game when tenants move in and out:

✅ Move-In Checklist Made Easy:

📝 Wave goodbye to endless paperwork and confusion during move-ins! Use the move-in checklist to document any existing damages and get that tenant's sign-off. QuickBooks Desktop keeps everything organized and foolproof.

✅ Smooth Move-Out Inspections:

📷 Snap, snap, and you're done! Capture pictures of damages during the move-out inspection and have your tenants sign off on them. QuickBooks Desktop lets you easily track repairs, replacements, and cleaning tasks needed.

✅ Hassle-Free Security Deposit Management:

💼No more fussing over security deposits! With QuickBooks Desktop, you can effortlessly deduct repair costs from the tenant's security deposit and track any refundable amounts. It's like having your own personal financial wizard!✨

Work with AMH Bookkeeping LLC:

💼Ready to take your landlord game to the next level without the bookkeeping stress? Cue the entrance of AMH Bookkeeping LLC – your fairy godmother of numbers!✨

💙Focus on Growth, Let AMH Handle the Books:

📚 Say goodbye to bookkeeping headaches! AMH Bookkeeping LLC specializes in QuickBooks Desktop and can handle all your financial needs while you focus on expanding your empire.

💙 Personalized Bookkeeping Magic:

✨ Get the magical touch of AMH Bookkeeping LLC with personalized solutions tailored to your unique real estate business. Your success is our priority, and we've got your back!

🌟 It's time to level up, darling! QuickBooks Desktop and Statement Charges are the dynamic duo that will revolutionize your tenant management. Streamline your processes, save time, and conquer the world of real estate with ease. When you're ready to add a sprinkle of AMH Bookkeeping LLC magic to your journey, we'll be here to slay with you. Let's make those numbers work for you, fam💃🏾💰💖! 

 

👉🏾 Learn more about how AMH Bookkeeping LLC can elevate your landlord game at amhbookkeepingllc.com. Get ready to shine like the badass rental property owner you are! ✨✨✨

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Landlord Reports: KPIs – What Are They and What Can They Tell Me?

Landlords, let's talk reports and which of them you should analyze regularly.

Obviously you are familiar with the P&L Statement and the Balance Sheet but how about your Tenant Turnover, Rent-Ready Costs, and Revenue Growth Reports? These reports are your KPI Reports, Key Performance Indicators.

How many of you can raise your hands to say that you are even tracking these things? It's okay if not many of you raised your hands. You don’t know what you don't know. I will explain a little about the 3 reports I mentioned above and talk a little about how your bookkeeper can help you begin tracking these vital pieces of information about your business.

Let's start with the Tenant Turnover Report.

Tenant Turnover, for those of you who are new to landlording, is the process of getting a rental ready after a tenant has moved out. This report is vital because it can help you determine just how much it costs to fix any repairs in the unit, cleaning costs, and all the administrative costs associated with getting the unit occupied again. These costs include but is not limited to:

• Marketing
• Application Processing
• Showing the Rental (your time is money)
• Excessive Damage due to an upset tenant (this can be in the THOUSANDS)

When you are making your business budget for the year, you must look at this report to help you decided if you need to increase the budgeted amount in one of these mentioned areas or decrease it.

Rent-Ready Costs, similar to those reported on the Tenant Turnover report, these costs are, in my opinion, related to the materials needed to get a unit rent ready. Materials like paint, outlet covers, light bulbs, drip pans for the electric stove, etc. Knowing these costs, on a per unit basis, keeps you efficient. You will know just how much of a security deposit you will keep or if you need to raise the deposit on a particular unit.

Outstanding Debt and Revenue Growth go hand in hand. You cannot determine if you are increasing your revenue without first knowing what you outstanding debt is and how that effects your cashflow month to month. This is essentially your income to debt ratio report which can help you determine if a property is leverageable.

These are 4 of some of the most common Landlord KPI reports and should be monitored every month. Some you can push out quarterly or even annually but keeping a close eye on them monthly can help you make changes quickly before cashflow truly begins to be effected.

Ready to get these reports set up with your accounting system? AMH can help with that. Schedule a consult with us now!

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Small Business & Bookkeeping – Economic Injury Disaster Loan

The Coronavirus has really changed things in a DRASTIC way. Small businesses are forced to close as they are deemed nonessential and because of this, they are losing money, forced to lay off or fire loyal employees and are having difficulty paying their bills. This lack of control over their businesses causes high levels of uncertainty, stress, and that is just on the owner. Their employees are in fear of losing their homes, health insurance, and a host of other liberties that NO ONE should be in fear of losing.

The Small Business Administration has several solutions to help small business owners protect their assets including their employees. The one I am going to talk about in this blog post is the Economic Injury Disaster Loan, referred to as the EIDL for the remainder of this post. The EIDL was put in place as a means for small businesses to offset the financial damages caused by disasters. Think Hurricane Katrina. This particular loan is only for those injuries of a financial nature.

I recently reviewed a presentation on the EIDL; its requirements, what it can and cannot be used for, and who is and isn't eligible to apply. The requirements I am going to specifically mention are those that deal with your financial information.

The EIDL allows borrowers to receive up to $2 million to sustain their businesses. Loans in excess of $25,000 require collateral, this collateral can be real estate, and the loan will not be denied for lack collateral but, a pledge of what is available IS required. Interest rates for small businesses is 3.75%; for most private and non-profits it is 2.75%. Terms up to 30 years based on type of business, size, and financial resources.

To apply, you will need COMPLETE copies of your most recent tax return, schedule of liabilities, and a personal financial statement. If you do not have your tax return, a year end P & L Statement and Balance Sheet will suffice.

When it comes to your year-end Income Statement and Balance Sheet, a bookkeeper is worth their weight in gold. Stop spinning the wheels of your minds trying to come up with accurate financial statements. Schedule a consultation with AMH today and let me help you!

For more on the requirements for the EIDL click HERE. To schedule an appointment with AMH, click HERE.

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Tax Tips – Vol. 1

Parents with working dependents, this post is for you and your working dependent.

Below is the link to an article I found giving some insight into the requirements to file with your working dependents and if they should file on their own as well. I am going to highlight the key points AND provide the link to the article as well.

Happy reading!

What can you claim on your return?

For 2019, dependents who are not 65 or older or blind, who have earned income more than $12,200, must file their own return. Income levels required to file a return for those 65 and over or blind are higher. You do not include their earned income on your taxes. If they earned less than $12,200 in 2019, they do not have to file a return, but may wish to do so to recover any withheld income taxes. You can still claim them as a dependent on your return.

Dependents who have unearned income, such as interest, dividends or capital gains, will generally have to file their own tax return if that income is more than $1,100 for 2019 (income levels are higher for dependents 65 or older or blind).

A parent can elect to claim the child's unearned income on the parent's return if certain criteria are met. Generally, for tax years prior to 2018, the unearned income is taxed at the parents' tax rate. Beginning in 2018, all net unearned income over the annual threshold ($2,200 in 2019) is generally taxed using the tax rates for trusts and estates.

From <https://turbotax.intuit.com/tax-tips/family/should-i-include-a-dependents-income-on-my-tax-return/L60Hf4Rsg>

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A Word From AMH

I want to keep this post short and sweet. It's listing the 5 major things THIS bookkeeper wants small business owners of all industries to know. Let's get into it.

 

Bookkeeping is not a glorified data entry position.

It takes education and industry knowledge to properly enter transactions so that they are hitting the proper income and expense categories. This is to ensure maximum

business tax deductions for you, the owner, which in turn reduces your tax liability.

 

The price of your accounting software does not equate the monthly cost of your ongoing bookkeeping service.

I say again, the price of your accounting software does not equate the monthly cost of your ongoing bookkeeping service. When all you care about is the price, you underappreciate the experience, knowledge, and expertise of all bookkeepers. Cheap work is often not the best work. Think about it. Anything you see as high quality always comes with a higher price right? Treat your bookkeeping needs the same…you will not regret this decision.

 

Your bookkeeping needs are NOT simple.

If your bookkeeping needs were as simple as you say they are, you would not be behind or in need of an accountant or a bookkeeper. Let's be honest only a knowledgeable accountant or bookkeeper can distinguish how simple or complicated your books really are. You understand how to do the service your business is in, not the accounting requirements, right? Why would you think they were simple if you don't understand them?

 

Do not micromanage your bookkeeper or accountant.

Especially if you have no idea how to do the work. Do not try to tell them how to shed time down on doing the work YOU hired them to do. You will get labelled as a PITA (Pain In The ASS) and the rest of the industry may be on alert for you. Imagine how you would feel if a novice came in telling you how to run your business and you KNOW they haven't the slightest clue about what you do? Why would you do the same to an accountant or bookkeeper?

 

Respect the boundaries your accountant or bookkeeper sets.

You would expect the same from him or her. If they tell you all correspondence is to be sent via email, do that. If they tell you they are on vacation and will get to your issue when they return, respect it. We are business owners too and our time is just as important as your time.

 

We WANT to work with you and we need the same respect FROM you as you expect from us.

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Efficiency: Tenant Exit Interviews

The final installment in the efficiency series is on Tenant Exit Interviews.

How will this make me efficient?

When a tenant moves out (this is when you want to conduct an interview, not when they are evicted) he or she can give you valuable insights that can level up your rental business.

You can ask questions like the following:

  1. What did you like about the application process?
  2. Was it easy to get through?
  3. Were you fully aware of what we expected from you and what you could expect from us?
  4. Would you rent from us again?
  5. What was the best thing about the entire process?
  6. What was the worst thing?
  7. What could we have done better?
  8. What do we need to keep doing?
  9. If you were renting from us again, what amenities would you like to have that weren't present now?

The key to growing your business is making your rentals stand out to your ideal prospects. What better way to do that than to interview those tenants that are moving on their own accord? Especially if they are caught up on rent, didn’t damage the place, and actually give you a notice BEFORE they move. It's tenants like this that can really give you invaluable feedback that you can use to level up you processes and scale your business by attracting your ideal tenant.

Remember, the way your building looks on the outside, the inside, the amenities, location to places like schools, shopping, and entertainment are all just as important to your ideal tenant as the amount of rent they are paying. You cannot expect A+ tenants in D- units.

Conduct the exit interview with your tenants and let them help you get to where you want to be.

For more information about this blog post and the rest in the efficiency series, schedule a call with AMH!

AMH Bookkeeping, LLC. The Landlord's Bookkeeper™

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Efficiency: Tenant Onboarding

Now if you have been following my blog, you know that we have already covered employee onboarding and how that helps keep your business running efficiently. Onboarding a tenant also helps and that is what we are going to focusing on in part 5 of our Efficiency series.

Onboarding starts at the very beginning when he or she is still a prospect. The purpose of taking you tenant through an onboarding process is so that he or she knows what their responsibilities are and what he or she can expect from you, the landlord. In the beginning this is the application and screening process.

Establishing your screening process early on and having a scoring worksheet handy for tenant viewing will let every prospect know what is required from them to rent from you. This keeps you compliant with the Fair Housing laws. The beauty of making this worksheet available to view for your tenant is it will weed some of the prospects out before they even get to the application process.

The next step in onboarding is your application process. How clear is this to your prospects? Do they know what kind of documentation you require when they are filling out the application? Are you coupling the Consent for Background Check with the application? If not, this is the perfect time to do so. Be sure to get a copy of their Driver's License or State Issued ID and Social Security Card after the consent form is signed. Also, how are you performing the background check? Contemporary Information Corporation (CIC) has a very detailed and thorough background check report. You can check them out HERE.

The Fair Housing Act is explicit with its criteria for turning an applicant into a tenant, I am paraphrasing but, the first applicant that meets all of your requirements is the person(s) you rent to.

Now we can get into the meat and potatoes of today's post: What happens once you have agreed to rent to the applicant.

Now that you have agreed to rent to the applicant, it is time to have them walk through the unit with your move-in checklist, make sure to have them notate anything out of the ordinary as being there BEFORE they move in. Performing the walkthrough before lease signing help you, the landlord, by establishing what was there before the tenant in the event they move out and you need to assess any damages. After the walkthrough is completed, we can move to lease reviewing and signing.

Yes! It's time to go over the lease. This part is CRUCIAL to your onboarding process. Making sure to go over the lease and have the applicant initial those key points of your lease can alleviate any "I didn't know" excuses from your tenant when it comes to lease violations. It also lets them know exactly what is expected of them and of you, Landlord. It is one more layer of protection for you as well. Now that they have signed it, paid the security deposit and first month's rent, you can hand them their keys, and welcome them to their new home!

In roughly two weeks, send them a welcome gift of some sort along with the dates of your preventative maintenance inspections. If you are not doing preventative maintenance inspections, stay tuned to our blog for more on that.

Congratulations!! You have successfully onboarded your tenant. Now he or she understands their role as your tenant and your role as their landlord. For more information on this topic, please do not hesitate to reach out to AMH. We are here to help.

AMH Bookkeeping, LLC….The Landlord's Bookkeeper.

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Efficiency: Documents

Welcome to Part 4 of the Efficiency series. In this post we are going to talk about document preparation, retention, and filing for accounting and bookkeeping purposes.

Paperwork, YIKES! It is a necessary pain for all business owners. Applications, consent to background and credit checks, lease agreements, income verification, and so much more.  Of all the document types there are, this post will focus on those needed for rental property owners in regards to their accounting.

Let's get into it.

As a bookkeeper for rental property owners, I have developed a set of documents I require to accurately record transactional data for my clients. Depending upon your bookkeeper of the choice, the amount of work they do versus the amount of work you do, and the timeframe the work is completed in, this document set may be different.

  • Bank Statements
  • Credit Card Statements
  • New Tenant Info - Name, Unit Number, Rent Amount, Amount of Security Deposit, and payment method
  • Ex Tenant Info
  • Itemized Deposit Return Letter
  • Copy of Security Deposit Check
  • Deposits Slips - Must have unit number, amount, and payment method of each tenant
  • Copies of Checks written
  • Any other document created from the resort of a transaction concerning your business finances

These are the documents that need to be compiled and prepared as applicable to each month or other period the accounting is done in. Now that we have gotten the proper documents prepared and scanned over to the bookkeeper, we can talk about what to do with them.

Starting your filing and retention process off the right way in the beginning will ensure that the documents you need are easily accessible. It is the opinion of this bookkeeper that all documents pertaining to ex-tenants be kept for a period of 5 years beginning at the date the tenant-landlord relationship ends. Check the statute of limitations in your area for exact retention requirements as they relate to filing of lawsuits and other legal matters. That covers retention, now let's get to filing.

Filing these documents, invoices, bills, and statements from your financial facilities, in the opinion of this bookkeeper, should always be filed by month with the most current item being on top. It eliminates the need to dig through several file folders to find the proper document when you can go to the file containing the month in question and all documents of transactions occurring in that month. Talk about efficient! Tenant records should be filed according to unit number. More often than not, you, the landlord may not remember when they moved in but you will remember the unit they rented. This will help keep all records for that unit together.  *As a side note, you also keep invoices and receipts of repairs of tenant fault charges with their records as well.*

The best way to ensure you have all the financial documents you need for your accounting processes is to work with an experienced accountant or bookkeeper like those AMH Bookkeeping, LLC. We are the landlord's bookkeeping firm and we are here to help. Schedule a call with AMH and let's talk about your needs and how AMH can assist you.

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Efficiency: Lease Renewals

Welcome to Part Three of the Efficiency series. Today we are going to discuss lease renewals and how to make this process as efficient as possible.

First, how many of you are scattered in terms of when you renew your leases? Meaning are you doing this every month with a new tenant, several in the same month?

If you answered yes to the above question, please, keep reading.

Lease renewals can be a stressful part of your rental business, particularly if it is not a streamlined process. Trying to coordinate the signing with the tenants, driving all over your city, performing the walkthrough to note the wear and tear and needed repairs, and finally sitting down to sign the lease can drain you. Let's get into how you can streamline this process.

  1. Draft and send a letter to all of your tenants letting them know the change in this process. Address the why as clearly as you can. I recommend that you speak to maintaining professionalism and to ease the process for the tenant as well by giving them earlier notice of the renewal.
  2. As mentioned in Part One, you can use Acuity to set up 1 or 2 days that you will do lease signings and have the tenants sign up on those days at times that work for them. If you own both Multifamily and Single family residences, schedule about 2 days for each, depending upon the number of units for each.
  3. Try to keep the entire process to 30 minutes. Having the initial walkthrough form used when they moved in will help keep this to the time allotted.
  4. Lastly, if possible, perform lease renewals in the spring or summer. It is easier for people to find and move into a new place in these months than the colder months should they choose not to renew.  It is also the time most people want to be outside so travelling won't be so hazardous.

As you become more efficient in your rental business, you will begin to train the tenants on the behavior you expect from them as well as what they expect from you.

Need some help getting started, schedule a consultation now. Click HERE to make your appointment!

AMH Bookkeeping, LLC. The Landlord's Bookkeeper.

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