If you’ve been following us and applying the tips we suggest to your business, you know how convenient it is to use QuickBooks for both accounting and real estate management needs. There are always questions that pop up as you go. One of our clients recently asked about QuickBooks to track real estate taxes. We hope that posing their question and our response will be helpful to you.

Q: I have trouble keeping track of real estate taxes and accrued real estate taxes in QuickBooks. What is the proper way to enter and track these costs?

A: To track real estate on an accrual basis in QuickBooks, enter your payment, and apply it to the Balance Sheet account. A Balance Sheet account is an asset, liability, or equity account. Check the Balance Sheet report.

If you are using QuickBooks for property management, do not forget to select the property as the Class, allocating the tax expense to the appropriate property.

Each month or at the end of the year, offset the Balance Sheet account to the expense account. Therefore, tax payments as a business expense.