This is one of those real estate Quickbooks tips you’ll want to save if you’re wondering how to enter a real estate purchase in QuickBooks.
The best solution I’ve found is from Accountant-in-a-Box.
I’m not gonna lie, I’m biased here because you CAN buy the software from me right here…
However, before I started promoting it, I used it and made sure I trusted the process which I’ll show you here.
Let’s see how we how to enter real estate purchase in QuickBooks:
Step 1: Set up your properties as a “Class”
You do this because you can track and classify your income and expenses per property.
And, you can run reports that show your transactions by property.
SWEET!!!
Step 2: Setup your property accounts
For this to work awesome, you need to set up 3 specific accounts for each property address:
- Building account
- Mortgage account
- Shareholder loan account
[thrive_text_block color=”green” headline=””]Trust me, this is REALLY easy stuff with Accountant-in-a-Box – you’re talkin’ to a dude here that has ZERO bookkeeping knowledge and can’t even do simple multiplication in my head 🙂 [/thrive_text_block]
Read: if I can do this, so can YOU!
Ok – let’s move on to step 3 for how to enter property purchase in Quickbooks
This one is probably the most important to keep track of everything…
Step 3. To record this last part correctly, you need the legal and financing documents from the purchase. (Statement of Adjustments and Trust Ledger Statement provided by your lawyer)
Below is an example pic was taken from a fictitious property so you can see how these items are entered into the QuickBooks general journal:
To give you an idea of where these line items are coming from, here’s the sample “ledger” taken right from Accountant-in-a-Box program manual:
There you have it – the best real estate quickbooks tip I know for entering a real estate purchase in QuickBooks.
As I said above, using Accountant-in-a-Box has saved me time & money paying my accountant and bookkeeper to do a lot of this stuff.
All of the samples above are directly from the Accountant-in-a-Box program and if you want to learn more about getting a copy for yourself: