One of the tough challenges with managing a rental property is figuring out what your net income is. This is especially important if you plan to sell the property, but it’s also wise to know what your current net income is at all times.
The financial management tools can’t help much for this task because they don’t consider vacancy rates and expenditures that you incur as a landlord. Real estate accounting software can help you handle all these issues. But how to choose the best software for your needs? If you’re looking for the best real estate accounting software, check out our review of the top 5 programs.
Our Top 5 Real Estate Accounting Software
1. Best Overall: FreshBooks
Do you get frustrated when you have to spend hours on end trying to keep up with your invoices and tracking down when it’s time to file your taxes? Do you wish that there was an easy way to create professional-looking invoices that make it crystal clear what each one is for so there are fewer chances of a misunderstanding?
That’s exactly what FreshBooks provides. It allows you to create lightning-fast, gorgeous-looking invoices in seconds while also giving customers the information. Those who use FreshBooks have saved up to two hours a day by using this app.
Quit wasting your valuable time trying to keep up with old-fashioned tracking methods and get a professional, easy-to-use invoicing solution that’s sure to make your customers happier and you more productive.
FreshBooks is online accounting software used for generating invoices and tracking time spent on jobs. It is both powerful and flexible in design, easily adaptable to suit the requirements of a freelancer or small business owner with multiple clients while also offering sufficient depth to be used by companies with numerous employees who need more robust features.
FreshBooks tracks invoices, time spent on jobs, and expenses for clients divided across different clients. Each client’s information is collected into their database and is automatically organized according to categories for easy access to the information.
Users can also have multiple places to track their time, such as a personal mobile device or desktop computer, with the option of importing or exporting data from each device. FreshBooks’ user interface is built to be both powerful and easy to understand.
2. Best for Small Business: Xero
The Xero software is a real estate accounting software that is also cloud-based. It was released for the Mac first, and now it integrates with other web-based applications such as Dropbox, Google Maps, Mailchimp, PayPal, and Facebook.
Xero allows its users to input expenses or revenue related to their transactions using labels classified into different categories, which can be organized into company units. It will enable you to pay bills with your credit card or from your bank account on the same screen where you track projects with a timeline and invoices due and received; all this can be done in the app or through a browser if not on a mobile device.
The invoice is then sent to your client directly on their email or through an attachment. The entrepreneur can also do bank transactions now from the app, which helps them save a lot of time spent in other activities correlating with their business.
The app also allows you to create and monitor projects and take pictures of receipts, store contacts and manage invoices using different payment methods.
By connecting Xero with your social media accounts, the app will be able to share news about your company on Facebook or advertise new products by sending bulk emails through Mailchimp.
3. Best Mobile App: QuickBooks Online
QuickBooks Online is the newest addition to Intuit’s family of business solutions, QuickBooks. It provides small businesses with the tools they need to run their operations efficiently and grow profitably. Compatible with devices ranging from computers and smartphones to tablets, QuickBooks Online can be used anywhere.
Easily manage your real estate business online with QuickBooks Online. It allows you to collaborate and grow with the help of cloud computing. This software is designed for small businesses, entrepreneurs, and accounting professionals looking for a reliable service they can access anytime, anywhere. Intuit’s line of top-rated business apps empowers millions of users to spend less time on paperwork and more time on what really matters.
With 28 years of experience in business software, Intuit helps businesses in 190 countries around the world run better, smarter, and faster businesses. They have products and services that can help your business simplify accounting, pay employees, make customer payments, manage inventory and accept payments online.
The QuickBooks Online platform helps entrepreneurs run their business easily and get more done in less time. It offers features that let users connect to the information that matters most through applications such as mobile apps for businesses. The app helps you access real-time data from anywhere at any time.
QuickBooks Online comes with several applications to help you run your business seamlessly. From invoicing to accepting payments from customers, this platform has everything a small business needs to get things done right away.
4. Best for Creating Invoices: Realtyzam
If you’re a real estate agent or investor, you know that managing your finances can be daunting. You likely have many different bank accounts, credit cards, and transactions from various sources that need to be reconciled before preparing your taxes. That’s why Realtyzam was created!
Realtyzam is a simple accounting software built for agents like yourself. It takes just 10 seconds to generate the report you need for each quarterly or year-end tax deadline – all without having to reconcile any of your data separately! All of your data will automatically populate in Realtyzam and provide the exact numbers needed for accurate tax reporting.
Simply enter your bank statements, credit card statements, trade confirmations, and investment income in one place. With a few clicks, you can build a full monthly summary or report to be used when preparing your taxes.
No more uploading stacks of paper receipts for any expense as well! Simply take a picture of your receipt on your phone and upload it directly to Realtyzam so you can easily keep track of travel expenses, office supplies, and much more. This is just one example of how Realtyzam manages the finances for real estate investing much more effortless.
But this isn’t all…you can also use Realtyzam to manage additional information that will help run and grow your business. The company is in the process of adding new features, including a paid subscription to enable some of our features. In the meantime, Realtyzam will continue to grow with more valuable features.
5. Best Free Accounting Software: Wave
In this product review, we will cover Wave Product Review and their real estate accounting software. Wave is a cloud-based business management software that offers tools to manage your income, handle invoices, manage cash flow, and organize accounting and tax payments. The best part about using it is that it’s effortless to use.
Let’s start with their product features:
- Manage your income and expenses: if you’re a real estate agent, you need to have a way of organizing your income and expenses so that you can see the difference between them. This is where Wave comes in. By having online access to all your business accounts, you can keep track of everything you spend and everything that comes in, allowing for easy accounting on the cloud.
- Create professional invoices for free: don’t waste time trying to figure out how to create and print professional-looking invoices. Wave has a set of templates that you can use to quickly create professional invoices that you can email to your clients and customers.
- Easily manage cash flow: No matter how much money you bring in, the best way to handle it is not to spend it. This is where Wave comes in. The Cloud-based platform allows you to quickly enter your income and expenses into the system, where Wave will automatically calculate the proper cash flow for you.
- Organized and stress-free small business accounting: with a small business or freelancing, money isn’t always going to come in on time or in total. That’s when you need to be able to track the flow of money in and out so that you’re not wasting time.
The best part is that Wave automatically calculates accurate cash flow, allowing you to spend your time focusing on your business instead of worrying about the money.
Before you invest in real estate accounting software, you must figure out what your requirements are. There is a wide variety of programs out there that can suit all sorts of needs, so it pays to do some research beforehand. Below, we have compiled a list of the most popular features and considerations for users.
What Is Real Estate Accounting Software?
Real estate accounting software is an excellent choice for any business or individual who needs to track their finances in detail. The program will allow you to track your income and expenses in a highly organized and professional manner. It can also be helpful if you just want to keep track of your funds in general. In this way, real estate accounting software can serve as a great business management tool.
Some of the most significant benefits of using a program like this include:
- The ability to easily view all your financial details in one place with the click of a button. This can be especially useful if you have multiple properties or just want to keep tabs on everything.
- You can keep track of multiple properties from a single interface instead of having to switch between programs. This is perfect if you are working as an agency or own multiple properties yourself. This makes it easy for you to compare finances if needed.
- Real estate accounting software allows for easy tax filing and managing, saving you time and money in the long run.
- You will have the option of creating profit & loss statements if needed, so you can better understand how your trading is going.
- You can set up budgets for each property, which will allow you to remain on track. This might be especially useful if you have multiple properties that need regular attention.
The program can also be used as a general finance management tool. For example, if you deal with multiple currencies or want to keep an eye on your finances in general, it can be an excellent choice. Also, if you’re going to compare your statistics and performance against the previous year’s figures, it can help here too.
Features To Look For In Real Estate Accounting Software
When you are buying real estate accounting software, there are many things that you want to pay attention to. These include:
- The program should have a mobile version so that you can access your projects from anywhere. This is especially useful if you need to access it while traveling. You can also add information from the road if needed.
- You may want this to be compatible with other programs. This will allow for easy integration between the two systems. Ideally, this means that they will both talk to each other and share the information quickly. You may need this if your property management software is not particularly good at communicating with others at all.
- You should look at the accuracy of the information. This is impossible to guarantee, but it’s especially important if you plan on using this for tax purposes. In any case, you should make sure it is as accurate as possible.
- This will allow you to set up multiple user accounts with a single system. This is a compelling and helpful feature if you have various properties that need regular attention. You can have each of them with their budget and reporting information separately, just like a business.
- You can easily manage the financial information of multiple properties if needed.
Evaluating Real Estate Accounting Software
As you can see, this is a potent tool that can help to transform your business or administrative needs. When you evaluate different programs to use, you should always look at what they have to offer and how well it will suit your particular needs.
There are many options for anyone who wants to keep track of their finances accurately and conveniently. This makes it easy for you to plan and make the most of your budget at all times, whether as an individual or a business owner. It’s also helpful if you just want to get an idea about how things are going in general. Remember to do your research and find the best option for you.
How Can Accounting Software Help Real Estate Agents?
The average real estate agent generates over $100,000 worth of business annually. Along with the business comes a lot of paperwork and tasks to take care of – contracts, invoices, etc. Handling all these details can be frustrating for individual agents. Luckily there is real estate accounting software available that will help real estate agents manage all this job.
What Computer Skills Do Real Estate Agents Need?
If you are a real estate agent, you might wonder what computer skills do real estate agents need. First, if you don’t know how to operate a computer, it is important that, at the very least, you know how to turn it on and get online. Most office tasks such as word processing or spreadsheet work can be accomplished even if all the programs on the machine are unfamiliar or not installed on your hard drive (just plugging into an internet connection). Other skills also include basic internet searching and navigation.
What Is The Most Commonly Used Accounting Software?
The most popular accounting software used today is QuickBooks. It can manage invoices, keep inventory records, and track customers’ payments in one application over any internet connection or mobile device. In addition to these features, there are also others such as sales analysis reports, payroll processing, and timesheets if you need those options.