Rookie Reply: Time-Saving Real Estate Accounting Tips for New Investors
This week’s question comes from Aaron on the Real Estate Rookie Facebook Group. Aaron is asking: How do you set up your rental income for tax season? Do you just show your accountant, for example, a Stessa report? Do you give receipts to your tenant when they pay so you have one for tax season?
Navigating the world of real estate accounting can be tricky. Do you write everything down by hand or update your numbers in tax software? Ask two real estate experts like Ashley and Tony and you’ll see that there’s usually one clear way to gather up your rental income so your CPA doesn’t have a mountain of paperwork and an avalanche of questions to ask you.
Here are some suggestions:
Use software like Stessa or QuickBooks to easily track your income/expenses for tax time
Send tenants rent receipts (if they ask for them) using software like Apartments.com and RentRedi
Keep clear records of how much you received in rent, spent on maintenance, and any amount of vacancy
Get your bookkeeping in place from the first property onwards (your future self will thank you)
And more in the episode…
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
Links from the Show
Check the full show notes here: https://www.biggerpockets.com/blog/rookie-208
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