QB Online for RE Investors - Purchase Property with Cash
In this episode of Income Digs, Nick Baldo simplifies QuickBooks for real estate accounting, explains how to handle property purchases, deposits, and taxes. He also clears misconceptions about closing statements, price allocation between land and buildings, and the impact of transactions on balance sheets. Future topics include financing options and an accounting boot camp.
Key Points
- Use a generic chart of accounts rather than property-specific accounts to allow for scalability in real estate accounting.
- Record purchase deposits as another current asset initially and differentiate between closing costs that go on the balance sheet and expenses that go on the P&L.
- Utilize journal entries for significant transactions like property purchases to maintain detail and accuracy in the books.
Real Estate Accounting: https://www.youtube.com/playlist?list=PL89qBCL2vU2sab5dEzpwJTZi0zTLjCDXJ End to End RE Accounting Training: https://www.incomedigs.com/reab (CODE YOUTUBE50) Let's get back to basics with a quick-hitting demonstration on how to record the purchase or property in QBO.
- Generic Chart of Accounts
- Record the Purchase Deposit Ahead of Time
- Differentiate between Capitalized and Expensed Closing Costs
Check out Part 2 here: https://www.youtube.com/watch?v=8C1LQciF77Q
Chapters
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| 1:16 | |
| 3:13 | |
| 6:06 | |
| 8:20 | |
| 10:09 | |
| 14:13 | |
| 15:53 | |
| 17:32 | |
| 19:22 | |
| 20:18 |
Transcript
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