Ode to QuickBooks

What if I told you there was a product out there that could streamline your business, provide valuable real-time data about your properties and virtually eliminate any hassle associated with filing your tax returns? Furthermore, if you use it properly, it can make you love tasks that you used to dread. And it will only cost you a few hundred dollars.  The product is QuickBooks.

I don’t care what free money management software came with your new computer. If you own rental properties, even just one, buy QuickBooks Pro. Now.  If you can point and click and have even the most basic typing skills, you can learn to use it.  One of the most beautiful things about Quickbooks is that you can ease into it.  When I taught myself to use it, I treated it like a computerized checkbook register.  Little did I know that in one step of data entry, I was creating all of the information that my accountant needed to do my tax returns, all of the reports my bankers would want to see, and valuable reports that would allow me to keep track of my tenant’s rent payments. My awareness of all of these built-in features came much later.

I was really clear when I started buying property that I wanted to build a four lane highway and grow into it (which I did when I went from 2 units to 79 in three years).  Quickbooks was the asphalt on that highway.  I am so grateful for this product (and it has been a long day) that I decided to write a little poem . . .

Ode to QuickBooks

In the past

My receipts would tatter

And day after day

I had no idea what was the matter

Try as I might

I lost sleep at night

Because I had no idea of my numbers.

On a fateful day

Not so long away

I taught myself to enter

Everything that brought my business to center.

Now I peacefully slumber

Enthralled by the numbers

Knowing that my data

Has nothing the matta’

And that when I awake

The cheerful noise you do make

Will let me know

That as I grow

I can do my books quick

And still have my pick

Of how to report

On my free time spent at the resort.

One of these days, I am going to post some links to help you learn to use QuickBooks.  Be sure to follow my blog, so you don’t miss that information (as well as any future dreadful poems).

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Simple Financial Planning Can Go a Long Way

I learned this tip by accident, but now I swear by it.

Don’t have your mortgage/commercial loan payment due at the beginning of the month.  I find the best dates are between the 15th and the 25th.  This arrangement allows me to focus on collecting rents and communicating with any tenants who are late during the first two weeks of the month.  Then once the funds have all been collected, I can focus on paying my major bills.

If you are planning to acquire a new rental property, plan to close on the property after the 15th, so that your payment is due after the 15th.  Your closing date normally determines when your first payment will be due.  If that doesn’t work for your transaction, negotiate with your lender to adjust the payment date.  Even if it costs you a few hundred dollars in interest at closing, it is well worth it in the end. Collecting late rent is one of the headaches of being a landlord, so off-setting your loan payments from your tenant’s rent payments will help reduce the stress of late payments from tenants.

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