xero accounting software for rental property

Accounting SystemĪn accounting system for rental property is a good step up from a basic spreadsheet.Īccounting software automatically uses a double-entry accounting system of bookkeeping, which means that each entry you make has a corresponding opposite entry.įor example, if you enter a rent payment received by a tenant, the tenant’s outstanding rent liability is reduced and the checking account balance for your rental property is increased. But after a while, they quickly discover that using a spreadsheet for rental property accounting requires constant updating, and it’s far too easy to forget to record an expense that could be a valuable deduction at tax time. Many beginning real estate investors start out this way. The worksheet can also be used if you set up online rent payments with Zillow Rental Manager, although the two programs don’t sync with one another. You can download the Microsoft Excel spreadsheet for free, save it in a different format if you like, and customize it to fit your specific needs.

For example, the Zillow Rental Income and Expense Worksheet is a nice, easy-to-use spreadsheet for rental property accounting that is designed for landlords with 1 to 5 properties in their portfolios. There’s nothing wrong with setting up a spreadsheet for rental property accounting, especially if you own just a few properties.

Using a spreadsheet program such as Microsoft Excel, Google Sheets, or OpenOffice Calc is similar to using an electronic version of the old-fashioned pen and paper method of bookkeeping. When you set up an accounting system for your rental property you’ll have four main options to choose from: Spreadsheet Program In this article we’ll discuss the various options for rental property accounting software, how QuickBooks for landlords works, and take a detailed look at the best overall accounting and reporting software for real estate investors. That’s because real estate investors have specific needs beyond what a general-purpose, off-the-shelf accounting program can provide. While the software is good for accounting, it isn’t necessarily the best choice for rental property owners. A lot of real estate investors choose QuickBooks simply because it’s a name they are most familiar with.

Xero accounting software for rental property