Real Estate & Property Management
We track every expense by property unit. This separates profitable assets from money pits and keeps your Schedule E accurate.
The Investment
Real estate is all about location. The financials are all about separation. Expenses for one rental property must not get mixed up with another. Every repair, every mortgage payment, and every utility bill needs to be tracked to the exact address.
Profitability is unit-specific. Without accurate tracking, profitable properties end up subsidizing money pits. This chaos hides the true yield of your portfolio and makes major investment decisions impossible.
Who This Covers
Who This Covers
Residential and commercial property investors, landlords with small portfolios, and third-party property management companies managing owner accounts.
The Friction
The Friction
Invoices for contractors, lawn care, and cleaning services accumulate fast. Distinguishing between a routine repair (expense) and a major renovation (capital asset) is required for correct tax filing.
The Process
We track all income and expenses by property ID. This ensures your Schedule E is clean and accurate. Beyond the standard P&L, we manage key balance sheet items specific to real estate investment.
Liabilities must be clearly defined. Security deposits collected from tenants are not income; they are trust fund liabilities. Mortgage payments must be separated into principal and interest for tax purposes.
CapEx vs OpEx
CapEx vs OpEx
Improvements like a new roof or a major renovation must be capitalized and depreciated over time. Maintenance like patching a roof or fixing a leaky faucet is an immediate expense. We manage this crucial distinction correctly.
Contractor Compliance
Contractor Compliance
We track payments made to all unclassified vendors and ensure you have W-9s on file. This prevents headaches at year-end when preparing 1099 forms for handymen and subcontractors.
Common Problems
The biggest error is misclassifying a major renovation. Expensing a new HVAC system instead of capitalizing it messes up your depreciation schedule and guarantees an audit red flag. This throws off your financial statements.
Another issue is confusing mortgages. When an owner has five properties and five different loans, keeping the interest payments straight requires precision. Mixing up those expense buckets means deductions get missed.
Deposit Mismanagement
Deposit Mismanagement
Treating tenant security deposits as income is a common mistake. This inflates your taxable income and creates a liability problem when the tenant moves out.
Unrecorded Leases
Unrecorded Leases
Rental income is tracked against signed leases. When a tenant is late or moves out early, the accounting needs to reflect the change in the receivable schedule immediately.
What Changes
Portfolio decisions are based on facts. You know which units are cash cows and which ones are dragging down the overall yield. You gain the confidence to buy or sell based on clean data.
Tax preparation is simplified. Your accountant receives a complete, organized Schedule E package. The conversation shifts from fixing the numbers to maximizing depreciation and tax strategy.
Investment Clarity
Investment Clarity
You can compare the performance of your single-family homes against your small commercial spaces. This informs where you should allocate future capital for the best returns.
Bank Confidence
Bank Confidence
Lenders trust verified financial statements. When you walk into the bank for the next commercial loan, you have clean, unit-specific reports to back up your request.
Full-Charge Bookkeeping for Mid-Mo's Businesses
The Next Step:
Get Your Quote
Tell us what you're dealing with. We'll listen, ask a few questions, and give you a straightforward price that meets your expectations.
