It’s the time of year where accounting for real estate investors really counts!.
But don’t worry…I’m going to get you on the right path so you’re not scrambling in a few months to get everything submitted.
Accounting For Real Estate Investors Tip:Â CAR LOG BEST PRACTICES
Now that we’re at the beginning of a new year, it’s best for you to record the odometer reading for your vehicle. Do this for each vehicle you plan to use for and mileage deductions.
By recording the starting odometer reading every January, you will have a total number of the mileage traveled.
Once you have recorded the mileage traveled for business purposes, you will have an accurate percentage of how much you’ve used the vehicle for business.
The CRA loves data. So the more you have in case you have to prove things the better.
Admittedly, I haven’t done this in the past.
One because I was so far behind in my tax returns and two, I was never organized with systems and best practices that make things so much easier.
The thing is…once you set up the proper systems, routines and so on, you begin to take back more of your personal freedom because you’re no longer scrambling last minute.
If there’s ONE thing that ALL real estate entrepreneurs come to me for help with, it’s systems and routines.
And believe me – it’s NOT that difficult. What’s challenging is putting those positive habits in rotation so they become natural.
So let’s begin THIS year on a positive note, okay?
Here’s What You Need To Do Next
- Write down the mileage from your car. (right now)
Keep the vehicle log sheet in your vehicle. By regularly recording your business trips, you maximize you car deductions each year because you’re less likely to forget, compared to trying to remember at the end of the year or tax time like most of us do 🙂
BTW – my friends at Dube & Cuttini BDO provided the Vehicle Log sheet.
It’s part of their awesome Accountant In A Box bookkeeping program for real estate investors. You can find out more by clicking here.
I only recommend accounting for real estate investors products I’ve vetted and use myself – and trust me, I’m not anywhere close to being a bookkeeper or accountant.
Accountant-In-A-Box has saved me a considerable number of hours and hundreds of dollars every year because my QuickBooks is now set up professionally for real estate investing and the monthly input is mostly automatic.
To get your free real estate investor QuickBooks cheat sheet, click here.
I’ll have more bookkeeping tips for real estate investors shortly. But if there’s something pressing you’d like to know more about, let me know below and I’ll do my best to get that information up quickly!
Cheers!
cheatsheet states
QB class is a property
income stmt transactions are always associated with a QB class
but not all expenses are property related, ie. office rent, utilities ?
or are they ? prorated ?
or is there a need to set up an admin class ?
Hey there Roger…
If I’m understanding you correctly, you can set up “classes” which will differentiate where expenses go -or what they should be associated with. Accountant In A Box goes into this detail because you need to track expenses across multiple properties as well…