QuickBooks Online for real estate investors

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1 QuickBooks Online for real estate investors Gita Faust, Fast Trac Consulting 11/16/17 WiFi: QBConnect Password not required

2 CPE Process CPE Credit In order to receive CPE credit Be sure to sign in or scan your badge for this session You must stay in the session for the duration of the training This session is eligible for 1 hour of CPE CPE certificates are ed directly to you within 4 weeks of the conference date to the same address you used to register CPE credit administered in coordination with 2

Practice ProAdvisor from Insightful Accountant Gita Faust @FastTracConsulting.

3 About today s speaker Accountant Advanced QuickBooks Certified ProAdvisor Member of Intuit Trainer/Writer Network Intuit Premier Reseller 2015 Top Niche Practice ProAdvisor from Insightful Accountant Gita Author of Series: Manage Properties with QuickBooks Simplified Accounting Solution. 3

4 Agenda Real estate investor s journey Setting up QuickBooks Online QuickBooks apps Capitalize vs. repairs Cost segregation Your questions answered 4

5 Learning objectives Identify the features in QuickBooks Online to use for real estate Identify and understand the expenses 5

6 Real estate is at the core of almost every business, and it's certainly at the core of most people's wealth. In order to build your wealth and improve your business smarts, you need to know about real estate. Donald Trump

7 Before we start What are the questions asked by real estate investors? Why are investors frustrated by QuickBooks? Is QuickBooks Online good for real estate investors? 7

8 Real Estate Investor s Journey

9 Real estate investor s flow chart - process Buy Loans & investments Expenses Cost segregation Hold or sell Budget Loans Repairs Should we? Rentals Bid Partners Improvements Should we NOT? Flips Settle Investments Property cost Other deals Other expenses IMPORTANT THING HERE: It is all about money for the investor. You have to show the ROI. 9

10 Setting up QuickBooks Online for your Real Estate Investors

11 Which version should you recommend? QuickBooks Online Plus Label New feature Additional feature Name Locations Track your projects Budgets Classes Purchase order Time sheet Track inventory 11

12 Setting up QuickBooks Online for real estate investors QuickBooks Online Plus Use Locations for: Country State County City IMPORTANT THING HERE: You can allocate Location to one transaction and not by line item. 12

15 Setting up QuickBooks Online for real estate investors QuickBooks Online Plus Use Locations for: Use Classes for: Country State County City 15

16 Setting up QuickBooks Online for real estate investors QuickBooks Online Plus Use Locations for: Country State County Use Classes for: For flips - Leads - Rehab - Sold City 16

18 Setting up QuickBooks Online for real estate investors QuickBooks Online Plus Use Locations for: Country State County City Use Classes for: For flips - Leads - Rehab - Sold For rentals - Properties 18

20 Classes

21 Setting up QuickBooks Online for real estate investors QuickBooks Online Plus Use Locations for: Country State County City Use Classes for: For flips - Leads - Rehab - Sold For rentals - Properties Use Customers for: For Flips - Properties 21

22 Flip properties as customers

23 Setting up QuickBooks Online for real estate investors QuickBooks Online Plus Use Locations for: Country State County City Use Classes for: For flips - Leads - Rehab - Sold For rentals - Properties Use Customers for: For Flips - Properties For Rentals - Properties - Units (sub of Property) - Tenants (sub of Unit) 23

24 Rentals as customers

25 Setting up QuickBooks Online for real estate investors QuickBooks Online Plus Use Accounts for: - Income - COGS - Expenses - Assets - Liabilities - Equity 25

26 QuickBooks Apps

27 Use an app for rentals Tracking Lease dates (Buildium, Yardi, Propertyware, PropertyBoss ) Collecting recurring payments from tenants (Bill & Pay) Collecting documents from clients (Hubdoc) Auto calculate and post management fees, owner s check and create reports to PDF (OMoney) Import Transactions (TransactionPro Importer) 27

28 Work smarter apps OMoney * Management Fees Owner s Check Owner s Reports Calculate and post in QuickBooks Broker BrokerMint ** Import Home Depot Receipts HammerZen Recurring Payment Bill & Pay Document Management Hubdoc Property Management Software ** PropertyBoss Propertyware RentManager <2500 units Yardi >2500 units Recommended by me Share QuickBooks Files Qbox * Time Sheets and Scheduling TSheets Import Transactions TransactionPro Hosting SkylineCloudServices * * For QuickBooks Desktop 28

29 Capitalize vs Repairs

30 Expenses: the cost required for something; the money spent on something

31 Ask your client Does the expense incurred increases the life or value of the property? Repairs & Maintenance Capital Improvements Increases the property life Decreases your profits Increases the property value Increases the Assets Accelerates Depreciation 31

32 Repair 32

33 Maintenance 33

34 Capital Improvements 34

35 Product categories Provides a way for you to organize the expenses for ease of reporting 35

36 Accounts vs products & services Ask your client: Do you want to track cash flow? Do you want to know why money is due? Do you want to know when money is due? Do you want to pay more taxes? How many pages do you want the reports to be? What your goal is? 36

37 Cost Segregation

38 Cost Segregation is the process of identifying personal property assets that are grouped with real property assets, and separating out personal assets for tax reporting purposes.

39 Assets recovery More money in client s pocket! Real property Improvements Personal property Bonus depreciation allowance 39

40 Increase cash flow More money in client s pocket! Increase depreciation Expense deduction Pay less tax 40

41 Product categories Provides a way for you to organize the expenses for ease of reporting 41

42 16 Divisions of construction Best used in products and services 1. General requirements 2. Site construction 3. Concrete 4. Masonry 5. Metals 6. Wood and plastics 7. Thermal and moisture protection 8. Doors and windows 9. Finishes 10. Specialties 11. Equipment 12. Furnishings 13. Special construction 14. Conveying systems 15. Mechanical 16. Electrical 42

43 16 Divisions refers to the 16 divisions of construction, as defined by the Construction Specifications Institute (CSI)'s MasterFormat. In 2004, MasterFormat was updated and expanded to 50 Divisions. The standard is the most widely used standard for organizing specifications and other written information for commercial and institutional building projects in the U.S. and Canada. It provides a master list of divisions, and section numbers and titles within each division, to follow in organizing information about a facility s construction requirements and associated activities. Standardizing the presentation of such information improves communication among all parties involved in construction projects.

44 Flips and Rentals

45 Some stats about flips More than 6% home sales in 2016 were flips Price increases in 2016 were highest in 3-4 years Las Vegas had the most flipping activity, increasing up to 10.5% of all home sales, from 9.6% in % of flipped homes had acquired work permits 45

46 Real estate investor s flow chart - process Buy Loans & investments Expenses Cost segregation Hold or sell Budget Loans Repairs Should we? Rentals Bid Partners Improvements Should we NOT? Flips Settle Investments Property cost Other deals Other expenses IMPORTANT THING HERE: It is all about money for the investor. You have to show the ROI. 46

47 MONEY DOES NOT GROW ON TREES

48 But it DOES grow in real estate

49 As of today, QuickBooks Online is a perfect solution for agents, flips and a business that uses a third party property management software that tracks everything required for back office process and procedures. Gita Faust

50 Questions?

51 Access the presentations & continue the conversation The QuickBooks Connect 2017 Conference App The QuickBooks Community qbcommunity.com Sign in with your QuickBooks login

11/5/2014 DEFERRING TAX THROUGH COST SEGREGATION. Business Development Executive BKD, LLP

11/5/2014 DEFERRING TAX THROUGH COST SEGREGATION. Business Development Executive BKD, LLP DEFERRING TAX THROUGH COST SEGREGATION Jason Jobgen Business Development Executive BKD, LLP jjobgen@bkd.com Shelly Reyna Director BKD, LLP areyna@bkd.com October 15, 2014 1 TO RECEIVE CPE CREDIT Participate