QuickBooks Online for real estate investors

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

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 emailed directly to you within 4 weeks of the conference date to the same email address you used to register CPE credit administered in coordination with 2

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 Faust @FastTracConsulting.com Author of Series: Manage Properties with QuickBooks Simplified Accounting Solution. 3

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

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

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

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

Real Estate Investor s Journey

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

Setting up QuickBooks Online for your Real Estate Investors

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

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

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

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

Classes

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

Flip properties as customers

Rentals as customers

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

QuickBooks Apps

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

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

Capitalize vs Repairs

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

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

Repair 32

Maintenance 33

Capital Improvements 34

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

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

Cost Segregation

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.

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

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

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

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

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.

Flips and Rentals

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 2015 11.6% of flipped homes had acquired work permits 45

MONEY DOES NOT GROW ON TREES

But it DOES grow in real estate

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

Questions?

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