Find out how to set up a chart of accounts for a real estate company

Q: I need help setting up a proper chart of accounts for a real estate company that has three separate checking accounts for normal, commissions and escrow.

A: The Chart of Accounts is the backbone of your accounting system. That is why it is so important to set up the Chart of Accounts correctly. QuickBooks categorizes accounts as:

  • Assets: things your company owns
  • Liabilities: money your company owes
  • Equity/Capital: depends on entity type but it is used to track money invested into the company and drawn out of the company
  • Income: money earned from day-to-day business tasks
  • Cost of Goods Sold: Tracks the direct costs of your business’s goods or services
  • Expenses: fixed costs or overhead costs

If you are creating a new Company file, select Property Management or Home Owner Association or Rental as your industry. It will customize your income and expense accounts for you.

Open the Chart of Accounts list (Ctrl + A) and add a new account. Select the Account Type and enter the account name and information.

 Add a New Account

If you need help learning how to use QuickBooks for property management, we would like to offer you a sneak peek into our Landlord’s Guide to Financial and Property Management.

The guide will help you discover a quick and easy solution to all of your financial and property management needs! It is packed with tips, tricks, and techniques you need to know. Every task is explained in detail, with screenshots and step-by-step instructions.

A Landlord’s Guide to Financial and Property Management will give you the solid foundation you need to get your real estate rental business organized and on track for even greater profits.