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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!

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 to keep them separate and never commingle the funds.

To return a partial:

Using the Enter Statement Charges feature - Enter all the charges for cleaning, carpet cleaning, painting, etc. Enter these as positive amounts and it will decrease the amount of the credit sitting on the tenants record. Once all the charges are entered, any remaining amount listed in red as a negative on the tenant's record is due to the tenant.
Write a check from the Security Deposit account for the amount of the remaining credit on the tenant's record, in the expenses and items section below, choose AR and then choose the name of the customer you are refunding and then click save. This zeroes out the tenant's record and you can then make them inactive.

After the tenant has been closed out and made inactive in your QuickBooks, you can then list that unit as vacant and work to get it rent ready. How easy was that?!

For more information on how this works or to receive some training on processing your tenant security deposits this way, schedule your consultation today! AMH Bookkeeping, LLC……The Landlord's Bookkeeper.

Tag: bookkeeping

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

QuickBooks for Property Management – Security Deposits