We ranked Freshbooks as the best Best Accounting Software for Real Estate Investors in 2021 in our roundup. Click here to get 50% off for 3 Months Get 30-Days free trial
Sage is an entry level accounting and bookkeeping software that is ideal for SMBs and businesses want to manage their cash flow.
Deployed on: Cloud
Starting From: $10 /month
NetSuite by Oracle
One of the best cloud-based financial management solutions for medium to large organizations. It integrates with all other NetSuite order management, inventory, CRM and eCommerce functions to streamline critical business processes.
Deployed on: Cloud
Starting From: $999
A lot of startups and established investing companies in the real estate business often make the mistake of underestimating the power of numbers, despite a large number of accounting programs available for real estate companies that are on the market. For any serious real estate investor, accounting is a critical component of successful real estate business. Instead of spending a lot of capital on accounting firms and tax consultants, as a real estate investor, you may want to opt for accounting software that are deployed on the cloud..
In our buying guide for best accounting software for real estate investors, we will briefly introduce some of the best accounting programs for the industry.
Realtyzam is a cloud-based accounting software for the real estate industry, which is often used to manage invoices and keep track of your business' expenses. The software, which you can access on any device, helps you keep an eye on your business' financial health and status. It allows real estate agents to track income and keep track of advertising and promotion costs and brokerage fees.
It is also very useful for reconciliations and tax reports if you wish to file your tax returns at the end of the fiscal year without paying extra fees to a consultant or any other tool.
in order to file the tax return at the end of the fiscal year. Real estate agents also use it to track exchange rates on a monthly or annual basis and also to gain insight into top converting sales leads within specific time periods.
Realtyzam is available as a monthly flat-rate subscription for both desktop and mobile platforms, including Android and iOS devices.
Quickbooks Real Estate Accounting
Back Office is an add on specifically designed for and built on top of Quickbooks infrastructure. This solution helps real estate professionals in particular. All it simply does is, takes Quickbooks and extends its array of features to cover the needs of real estate investors. It enables users to keep track of sales, recommendations, and commissions, which helps real estate investing companies manage their cash flow. Users can also manage sellers, buyers and escrow accounts, which is helpful in implementing "lean management".
Back Office also boasts being one of the programs that integrate best with QuickBooks, the industry's leading accounting software and one of the best accounting programs for real estate investors. That feature alone makes it very easy for its users to generate easy to understand and actionable insights in QuickBooks quickly and effortlessly.
You've probably heard of that one. It is another of many cloud based accounting software on the market that enables you to manage your bookkeeping and expense tracking.
This application allows users to keep track of invoices, expenses and tax payments and refunds seamlessly from their PC or mobile app. It also integrates with your bank accounts, enabling you to reconcile expenses. Xero also comes with a easy to use payroll processing feature that helps you automate your monthly payrolls.
Cloud-based accounting applications such as Xero enable their users to synchronize data with accountants and bookkeepers so that their business runs smoothly and help avoid nasty surprises, such as an audit from the IRS. Xero is especially useful for portfolio management, where most functions are automated and easy to manage remotely.
In addition, like Back Office, Xero comes with QuickBooks integration that lets you synchronize data between Xero and QuickBooks. Just in case your business needs both, or you're switching your accounting work from one software to another.
Sage 300 is another accounting software and bookkeeping management solution for the construction and real estate sector that brings together different aspects of real estate management on a single platform. Sage 300 Construction and Real Estate combine Sage's experience in accounting software with unmatched accounting functionality.
Real estate agents, especially investors can use Sage 300 to manage payables, receivables, G/L accounts and payroll. Be warned though, while Sage 300 can store large amounts of data and does a lot for its price, it is certainly not the easiest to use compared to other SaaS we have on our list. There's certainly a steep learning curve. Users often have to turn many buttons to perform the simplest functions. Sage 300 is also rarely updated, which makes the whole user experience a bit archaic. So if you're looking for the latest tech, look elsewhere.
What is the best accounting software for real estate investors?
As you can probably tell by now, there's really not a one fits all solution. But cloud-based solutions such as Freshbooks, Quickbooks, and RealtyZam are among the best out there.
Tips for choosing the right tool for real estate accounting
Please bear in mind that an accounting software for your real estate business should never be a substitute for the real accounting work of a tax consultant or accountant. You should always make sure to support the work of your tax advisor or accountant by using such software to ensure that your real estate business runs smoothly.
If we agree on that, choosing the best real estate accounting software pretty much depends on how many employees will be using the application since most software out there charge per seat and you could save a lot on subscription costs by limiting the number of users that will have access to your finances.
You should also consider the level of knowledge of potential users. Complex software such as Sage has a steeper learning curve compared to an easy to use solution such as Freshbooks.
Bring your real estate accounting into a new age
You won't get any praise by your accountant or auditor if your bookkeeping isn't in order and you haven't managed your accounting properly. If you aren't managing all your invoices, expenses, spreadsheets, commissions and brokerage fees with a proper accounting software for real estate agents, every tax season turns into a nightmare.
Don't you think it is time to upgrade to what accounting software most real estate agents have been using all along to manage their taxes?
This is where a quality property management software with integrated property accounting can save a lot of time, frustration, and embarrassing mistakes. Rest assured that your accounting challenges will be solved, including the correct separation of your operating accounts from your client accounts.
Of all the benefits offered by the best property management software, the greatest improvements to your bottom line could be achieved in the 2019 accounting period. When market trends change, good accounting can help landlords and property managers avoid large losses and maintain positive cash flow.
Landlords, agents and property managers are rightly obsessed with saving money. In a 2021 bear market when most stocks bleeding money and properties losing value, you will need good property accounting software that is specifically designed to help landlords and property managers keep a close eye on their finances.
What are the benefits of accounting software for real estate agents?
- A good accounting software helps you keep your finances & expenses under control, track your payments, payrolls, monitor changes in your finances and run reports in real time.
- Automate your accounting and bookkeeping to save precious time and avoid accountant fees while making your bookkeeping duty easier.
- Generate insightful, real-time reports on rentals, leases, maintenance activities, expenses, balance sheets, and profit and loss statements
- View paid & unpaid invoices, money left in your bank account
- Eliminate spreadsheet errors and limitations - automate and relax
- Store all your documents, rental contracts, and invoices in the cloud. It is secure and allows you and your team members to access your data anywhere in the world from any device with an internet connection.
- Power of double-entry accounting
- No matter the size of your company, there's an accounting software designed specifically for your needs. Whether you're one man show, or a team of 500, you can find a scalable and powerful solution. All options we have listed in our roundup are comprehensive & powerful for property accounting.
- Complete double-entry accounting keeps your accounting reports accurate and up-to-date. From paying invoices to reconciling your account balances, you are much safer with real estate accounting. And when it's time to file your tax return, you benefit from additional advantages such as reduced tax costs.
Using Quickbooks for Real Estate
Quickbooks is a great accounting tool if you're in the business of real estate flipping. You purchase homes, renovate and sell them, we're going to show you how to get started with Quickbooks and how to set up your account. If you do rental properties, Quicbooks will still help you but we have separate guides for these purposes.
As a real estate investor or a flipper, first thing you should be doing is actually differentiating your projects in your dashboard. If you have at least two houses in your portfolio, you should be able to segment and separate you financial reports.
This is where Quickbooks' “Classes” feature comes in to play. This is a fine and maybe the easiest way to separate your real estate projects in Quickbooks, but unfortunately Quickbooks recently started limiting how many Classes you can have, it lets you create only 50. If you have more than 50 houses in your portfolio you'll have to think of a different way. Quickbooks Desktop however, allows you to create 10,000 classes for Pro, and 100,000 for Entreprise accounts.
One alternative to using classes to track and separate individual real estate projects is to use “Customers”. It basically means you treat each individual real estate as a customer. One benefit to using this method over Classes is, once you start using customers, there'll be a sub-feature called “Projects” will be available. It's a fairly new function added to Quickbooks Online recently. It has a start and stop point, allowing you to tell the status of your project as well as providing a lot of budgeting options and financial reports.
Ready to get started?