Real Estate & Property Management Bookkeeping

Rent received is recorded as income, while security deposits are booked as liabilities until returned or applied. Our bookkeeping system automatically records monthly rents per property and tracks deposit accounts. This ensures you can distinguish true income from refundable deposits at any time.

Tracking by property (or unit) gives clarity on individual performance. By setting up separate income and expense accounts for each property, you can see which locations are profitable. This helps in making decisions like pricing rent or deciding to sell a property based on its specific return.

Major purchases (new roofs, HVAC systems) are capitalized rather than expensed immediately. We then create depreciation schedules so you write off the cost over the asset’s useful life. This matches tax guidelines and ensures accurate profit reporting. Keeping detailed records of improvements also maximizes depreciation deductions.

A 1031 exchange allows deferral of capital gains tax when selling a property and reinvesting in a like-kind property. In bookkeeping, we record the sale and purchase details and note the deferred tax basis. This ensures your books reflect the tax-deferred status correctly and the new property’s adjusted basis after the exchange.

For multiple LLCs or partnerships, we maintain separate ledgers for each entity and clear equity tracking. Contributions and distributions are recorded to the appropriate owner’s equity account. This structure avoids mixing funds and accurately shows each entity’s financial position.

We create cash flow forecasts that account for regular rent schedules and seasonal fluctuations. If tenants are late, we show those AR gaps in real time, allowing you to arrange bridge financing or adjust expenses proactively. Our system also flags large upcoming expenses (taxes, mortgages) so you’re prepared.

You’ll get monthly profit & loss statements, balance sheets, and cash flow summaries by property. We also provide tailored reports like rent roll details, occupancy rates, and financing schedules. These regular reports help you monitor performance and support decisions (e.g. when to refinance or expand).

Vendor bills (repairs, maintenance, utilities) are coded to each property’s expense accounts. We track due dates and prepare payments (you can approve through a system like Bill.com). This ensures no duplicate payments or missed invoices. By automating invoice capture, you save time and reduce errors on payables.

Our bookkeeping aligns with IRS rules for rental real estate. We prepare annual schedules (depreciation, mortgage interest, etc.) and 1099s for contractors (e.g. plumbers, electricians). We also track and report on 1031 exchanges and ensure state/local property taxes are recorded. Proper record-keeping keeps you audit-ready.

We work with common platforms like AppFolio and Buildium. These can sync tenant rents and maintenance charges directly into QuickBooks or Xero. Integrating your property management system automates data entry and ensures rent and expense data flow seamlessly into your accounting.

If multiple owners share a property, we use joint venture accounting. Shared expenses (like property management fees) are split according to each owner’s share and recorded in their equity accounts. Crowningglobe ensures each partner’s investment and distributions are clear in the ledgers.

Best practices include segregating duties (e.g. different people collect rent vs. reconcile the bank) and performing regular reconciliations of bank statements. We also suggest annual third-party audits or reviews to catch discrepancies. These controls prevent fraud and ensure accuracy in your rental accounts.

QuickBooks Online and Xero are ideal for real estate, as they handle multi-entity accounting and integrate with property management apps. We also use bank feeds and apps like Dext for receipt capture to automate entries. These cloud tools provide security and remote access to your books.

Begin with an initial consultation to understand your portfolio and needs. We’ll assess your current systems and propose a tailored plan (from basic bookkeeping to full advisory). Onboarding typically includes setting up accounts, integrating your software, and training your team on any new processes. This sets the stage for clearer finances and better investment decisions.
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