Hi,
What accounting software would you recommend to manage your investment property. In fact it would be idea if it could manage:
* all expenses (incoming / outgoing) – e.g. import from bank account
* categorise into work / personal / investment
* for my self & my wife (i.e. noting some loans are split)
* identify which items are taxable expenses & what category of depreciation (e.g. expense, depreciate, add to cost-base)The outcomes I guess that I need are:
* Printout / files to give to accountant at tax time
* Ideally could also show you net worthTks
We use excel with a few pages and based on the tax office requirements forquick input to etax. ( over 15 properties with many having multiple rentals ie dual occupancy or 4 units)
Each month we review bank statements received for the previous month against the property managers' reports to ensure rent payments and put the net payments into the onth's income. The expenses from PM statements as well as any other expenses for the moth are also entered against each property.
Having been involved in computers for nearly 30 years I have seen many software programs become obsolete so that's why we have chosen a stable longer term and simple spreadsheet system. Remember, excel cell data system evolved from lotus 123.
The simpler the system, the easier to come back after two-three months of holiday and get inputing.
agreed, keep it sweet and simple. Too complex a system and you might need some detailed succession planning later on :p
nordicskier wrote:The expenses from PM statements as well as any other expenses for the moth are also entered against each property.Do you actually work out profit/loss for each property, or just an overall profit/loss?
I used excel too. Just do one sheet for each property and then a summary sheet with links to the totals of each property. I used a few commercial software programs over the years and found it best to keep it simple in excel.
Can do profit and loss for each property and overall portfolio.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Do you just track expenses in excel, or do you also do:
a) tax calculation?
b) projections re expenses/balances/net worth?Hi mixedup,
I agree with above.. excel is easy to use, most people know how to use it, no need to study manuals etc just start up your sheet and refine it as you go. Each time you use it you improve it, and eventually you have it just the way YOU want it.
I use excel sheets for each property and also run an excel sheet for my year on year financial statement. Thus is easy to see your day to day capital gains, share investments, wages, etc whatever you wish to put on the sheet.
I recommend you start a financial statement sheet straight away, it gives you motivation to improve your worth year on year ( or month on month if you are keen ).
Hop to it.
We’ve used POSH by Supertech for several years and are very happy with it. Plus they have a good support system with regular updates.
Adrian and Amber
http://www.RealEstateDevelopmentClub.comAdrian and Amber wrote:We've used POSH by Supertech for several years and are very happy with it. Plus they have a good support system with regular updates. Adrian and Amber http://www.RealEstateDevelopmentClub.comDoes it track the category of your expenses? for example Quicken seems to let you allocate an expense category, which itself then can tie to a particular tax item (like the question number on a tax return). That is at tax time it provides totals for each question on the tax form. Just wondering if POSH does this?
Yes it does track the category of your expenses and you can also allocate your own expense categories. You can view a live demo below:
http://www.supertech.com.au/poshdemo.htm
When your portfolio increases you may want to look at using an accounting software program like MYOB.
Adrian and Amber
http://www.RealEstateDevelopmentClub.comWe use a combination of Excel and Cashmanager which whilst being a glorified cash book is excellent for what it is.
Personally with the size of portfolio we have it is essential to have a decent back up otherwise come Tax time my Accountant has a fit but to give him the whole lot on a disc makes life easy.
Regretfully doesnt help me pay less Tax on the rental income but i guess thats always an issue on a Cash flow + portfolio.
Richard Taylor | Australia's leading private lender
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