“Bookkeeping” is the term that is engraved in ears of the accountants as they spend most of their time recording and maintaining transactions that involve money. Bookkeeping also knew as “doing the books” has become an inseparable part of the professional accounting. However, the situation is not the same for the beginners, especially who have recently started to practice their accounting knowledge. Therefore, as a result, we have come up with the following blog to highlight the top 5 tricks for successful real estate bookkeeping. Moreover, students can visit BookMyEssay to hire Bookkeeping assignment help to learn more about the subject.

Tips and Tricks for Real Estate Bookkeeping

Try to keep things separate

The very first rule of the successful bookkeeping is to learn how to keep your personal and real-estate expenses separate from each other. It will not only make it easier for you to keep the track of the transactions but also from a legal point, it is beneficial to keep your expenses separate especially when you are using the entity LLC. Therefore, it is suggested to open a separate saving account, current account and credit cards for your real estate transactions.

Now, in case you currently have multiple properties, then the question arises that “Can I use one account for all of my properties?” Although you can have separate accounts for all of them, it is suggested you have fewer than five properties, then you can hold separate accounts and credit cards. However, if you are investing your loan money in different properties in the very same location, then it will be considered as one property.

Keep a track for receipts

The second rule of the Bookkeeping is to keep a track of all of the receipts and write down which expense the receipt was for. This tip will be helpful while calculating taxes on the expenses and knowing where the money is going. You can easily assess the transactions to see which bills are paid and which bills are pending because, in the business world, there is always a scope of mistakes.

Itemize all the incomes and expenses from different resources

Every single penny that goes out of your business should be categorized and tracked properly. To accomplish this certain task, the above receipts comes handy. If you are tracking your bills with the help of the accounting software, then you can track the transactions on a daily basis. The longer you take to write down your bills the higher chances are there that you will forget to mention it in your track record.

This is one of the major benefits of the itemizing your incomes and expenses. Now, when it comes to categorizing the incomes and expenses it is best to categorize them according to the IRS list of schedule E which includes the below categories: –

  • Insurance
  • Utilities
  • Advertising
  • Travel Expenses
  • Commissions
  • Management Fees
  • Repairs
  • Supplies
  • Cleaning and Maintenance
  • Legal and Other Professional Fees
  • Depreciation or Depletion expenses
  • Other

Therefore, to organize your incomes and expenses, it will be beneficial to record them under the above heading. However, if you are still facing any difficulties while implementing the above tips and tricks, then acquire assignment writing service from expert writers at BookMyEssay.