QuickBooks Online is an accounting software used by many small and medium-sized business owners. QuickBooks Online for landlords provides numerous benefits to its users, one of which is bookkeeping, which landlords can use to track their financial reports. QB online gives its users the best service so they can grow their business. Many landlords have a large amount of property, which is not easy to handle. QBO helps them with its functionality to manage their rent and expense data. Here in this blog, we have discussed QuickBooks Online for landlords. Is QBO good for a landlord, and how can landlords track rent & expenses in QuickBooks Online
Is QuickBooks Online for Landlords Beneficial?
Yes, QuickBooks Online for landlords is good, as it provides help to the landlord in such ways:
- Organized Workflow: The flow of your work will be in an organized and formal way.
- Automated Rent Reminders: QuickBooks can remind you when you have to collect rent from your property automatically.
- Financial tracking: Manages financial statements and tracks rental income, expenses, and cash flow.
- Customizable Reporting: QBO helps with easy report customization. You can generate reports like profit and loss statements effectively.
- Cloud-Based Access: You can have access to your data from anywhere, and you just need a good internet connection and a device.
- Expense management: QuickBooks Online manages your tax time and financial records.
- Automated Invoicing: With the help of the QBO invoicing feature, you can create and send rent invoices to the tenants so that they remind themself to pay rent.
How Landlords Can Track Rent & Expenses in QuickBooks Online
You can easily track rent and expenses in QuickBooks Online by following these steps:
Steps to Track Rent in QBO
- Go to your browser and search for QuickBooks Online.
- Click on the sales on the left menu and go for new customers.
- After that, you have to create a rent item.
- Click on the gear icon, then product and service, name it rent and save.
- After that, send the tenants a rent invoice by entering the rent amount.
- If you want automatic monthly invoices, you can also create them in QBO
- After that, you have to connect your bank to the QBO.
- Match the rent payments matches it to your invoice that it is correct or not.
- Now, for each expense, choose a category like Repairs, Insurance, Utilities, and Mortgage interest.
- Go to reports, search for profit and loss. Click the report to view your property finances.
Steps to Track Expenses in QBO
- Connect Your Bank Account with the QBO.
- After that, go to the expense section and enter the amount, account and category of the expense.
- After that, go to the report section.
- Click on the expense by vendor summary
- There you will see your property expense.
The Limitations of Using QuickBooks for Landlords
- Limited Capability: QuickBooks Online does not provide all the features for the landlord, as it is an accounting software. QuickBooks does not specialize in tracking lease terms, managing tenant details, or calculating rent.
- Complexity in Tracking Multiple Properties: Landlords hold multiple properties, and they have to make sure to have data for every property, like rent and expenses. QuickBooks is for small and medium-sized businesses and cannot perform complex tasks.
- No Automation Rent Collection: QuickBooks Online does not have a feature for collecting rent automatically. It can only give invoices to the tenant, but it cannot collect rent automatically.
- No Built-In Lease Management: QuickBooks Online does not provide a lease management tool, and lease management is a major key point in the rental work.
- Tenant Communication: You can not connect with the tenant via QuickBooks Online, you have to go for another option, like a phone call, message, or email.
Conclusion
QuickBooks Online is the best accounting software that provides its features to small and medium-sized businesses, but it is not fully compatible with the full landlord’s needs. QuickBooks can be used for tasks like Financial tracking, Expense management, automatic invoice making, etc., which can help landlords manage their finances.