Recordkeeping and Accounting
In This Chapter
Putting your property records and files in order
Tracking the income and expenses for your rental activities
Recordkeeping and accounting may not be the most exciting aspects of real estate investment property ownership, but they’re among the most rewarding. Every real estate owner should be interested in knowing how much money she’s making on her properties and how much she’s spending. She should also know how she can potentially reduce her taxes.
Traditionally, the least favored aspect of owning real estate is keeping all of the required paperwork and doing the accounting. More property managers have gained clients because of these essential but tedious requirements than any other reason. But recordkeeping has roles in maintaining your assets as well as documenting performance. And the accounting is the report card or feedback that tells you just how well you’re doing.
Now, we can’t turn you into an accountant in the course of one chapter. Whole books are written on the subject. But what we can do is provide you with practical and useful information that you can use to organize your recordkeeping and accounting practices, and we can provide you with additional sources of information.
Organizing Your Records