Are you a real estate agent struggling to keep your finances in order? Choosing the right accounting software helps real estate agents manage their business more effectively. Having the right tools for bookkeeping and financial reporting is important in the changing real estate market. This will help you succeed.

In this 2024 edition guide, we'll explore the top accounting software options tailored for real estate professionals, including the best bookkeeping software for rental properties. Learn important features of real estate accounting software, including property management tools and tax preparation options. We'll also dive into our top picks, including the best overall solution and the ideal choice for solo agents. By the end, you'll have the knowledge to choose the perfect accounting software to streamline your real estate business operations.

Top Features to Look for in Real Estate Accounting Software

Choose properties accounting software for your real estate business carefully. Look for features that fit the unique needs of the industry. Here are the key features you should consider:

Automated Bookkeeping

Automation is a game-changer in real estate accounting, especially for managing cash flow. Look for software that offers automated transaction reconciliation, including bank feeds and the ability to set transaction categorization rules. This feature can save you hours each week by eliminating manual data entry. Good accounting software should import and organize transactions from your bank and credit card accounts, making bookkeeping easier.

Additionally, seek out software that provides automated invoicing and billing capabilities. This tool helps you handle many properties or clients easily. It has customizable templates, recurring billing, and reminders for on-time payments.

Property Management Tools

Real estate accounting software should go beyond basic bookkeeping. Look for solutions that offer:

1. Lease management and tracking
2. Property portfolio management
3. Repair and maintenance expenditure tracking
4. Owner and tenant portals
5. Sublease management

These features allow you to excel at managing rental properties more effectively. Tenant portals help with discussing repairs and issues. They make communication easier.

Owner portals allow property owners to view reports and payment details. This helps owners stay informed about their property.

Tax Preparation Features

Tax management, especially during tax season, is a critical aspect of real estate accounting. Your chosen software should simplify tax-related tasks with features such as:

1. Tax preparation and filing assistance
2. Calculation of tax deductions
3. Generation of necessary tax forms

Some solutions offer access to tax professionals who can help create the best tax structure for your business. This can potentially save you money on taxes and ensure filing accuracy.

Choose accounting software for your real estate business that is easy to use, affordable, and has the right features for your needs. Consider your specific needs and the size of your operation when making your choice.

Best Overall: QuickBooks Online

QuickBooks Online stands out as the top choice for real estate agents seeking comprehensive accounting software. This cloud platform lets you manage your finances easily from anywhere with an internet connection. Flexible and accessible.

Key Features

QuickBooks Online provides a range of features tailored to real estate professionals.

Features include:

1. Property Management: Set up each property as a separate "customer" or "job" to track rental income and expenses individually.
2. Tenant Tracking: Manage tenant information, lease terms, security deposits, and rent payments efficiently.
3. Income and Expense Tracking: Record income and expenses by property, including maintenance costs, property taxes, and mortgage payments.
4. Customizable Reports: Generate profit and loss statements, balance sheets, expense reports, and rent roll reports specific to the real estate industry.
5. Mobile App: Access your financial data on the go with the QuickBooks Online mobile app.
6. Custom Fields: Track important information like agent license renewal dates and MLS listing numbers.

Pricing

QuickBooks Online offers four pricing tiers, with a 50% discount for the first three months :

1. Simple Start: $15/month for the first three months, then $30/month
2. Essentials: $30/month for the first three months, then $60/month
3. Plus: $45/month for the first three months, then $90/month
4. Advanced: $100/month for the first three months, then $200/month

Each tier provides additional features and user access, allowing you to choose the plan that best fits your business needs.

Pros and Cons

Pros:

• Industry standard for small-business accounting
• Extensive feature set suitable for growing businesses
• Integration with over 750 third-party apps
• Robust reporting and analytics tools
• Automated data backup and real-time collaboration

Cons:

• Complex interface for making simple fixes
• Limited support for lower-tier plans
• Clients need to create accounts to pay invoices

QuickBooks Online is popular among real estate agents because it offers many features and the ability to grow. The top choice for many in the industry. Its popularity is because of its user-friendly interface and customizable options.

Additionally, real estate agents appreciate the flexibility and scalability of QuickBooks Online. This software can handle property management, track expenses, and generate custom reports. A powerful tool for simplifying real estate accounting.

Best for Solo Agents: FreshBooks

FreshBooks is a great option for solo real estate agents needing an easy-to-use and complete accounting solution. This online software makes managing finances easier, so you can concentrate on selling properties and helping your clients.

Key Features

FreshBooks offers a range of features tailored to the needs of solo real estate agents:

1. Customizable Invoicing: Create professional invoices with customizable templates, logos, and colors to wow your clients.
2. Expense Tracking: Easily capture and categorize expenses by snapping photos of receipts or importing bank transactions.
3. Time Tracking: Log billable hours effortlessly, ensuring accurate billing for your services.
4. Project Management: Collaborate with clients and contractors, share files, and keep all project-related information in one place.
5. Mobile App: Access your financial data on the go, perfect for busy real estate agents.
6. Mileage Tracking: A valuable tool for realtors, automatically tracking your travel expenses.
7. Client Portal: Allow clients to view and pay invoices online, speeding up the payment process.

Pricing

FreshBooks offers flexible pricing plans to suit different needs:

1. Lite Plan: $19 per month, ideal for freelancers and solo agents with up to 5 clients.
2. Plus Plan: $33 per month, suitable for growing businesses with up to 50 clients.
3. Premium Plan: $60 per month, perfect for established agents with unlimited clients.

All plans include core features like invoicing, expense tracking, and payment processing. Higher-tier plans offer additional features such as double-entry accounting and project profitability tracking.

Pros and Cons

Pros:

• Intuitive and user-friendly interface
• Comprehensive feature set for solo agents
• Excellent customer support
• Robust mobile app for on-the-go management
• Customizable invoicing and expense tracking

Cons:

• Limited customization options compared to some competitors
• Additional cost for extra team members
• May not be suitable for larger real estate businesses

FreshBooks is great for solo real estate agents. Easy to use, has lots of features, and is affordable. It helps agents manage their finances and focus on growing their business.

Conclusion

Choosing the right accounting software has a significant impact on the success of real estate agents. QuickBooks Online and FreshBooks are great options for real estate professionals with features designed specifically for their needs. These tools enable agents to streamline their financial processes, from tracking expenses to managing properties and preparing taxes.

In the end, the best accounting software for you depends on your specific requirements and the size of your operation. Consider using automated bookkeeping, property management tools, and tax preparation features to find a solution that suits your needs.

Automated bookkeeping can help you keep track of your finances more efficiently. Property management tools can assist you in managing your properties more effectively.

Tax preparation features can simplify the process of preparing and filing your taxes. With the right software, you can manage your finances effectively, maintain good financial health, and have more time to grow your real estate business.

FAQs

What accounting software is most recommended for real estate companies in 2024?

The top real estate accounting software for 2024 includes:

• Buildium: Best overall for property managers.
• Bench: Best for those who prefer hands-off bookkeeping.
• Zoho Books: Best for useful integrations within the real estate sector.
• FreshBooks: Best suited for Airbnb hosts.
• Xero: Ideal for real estate agents.

Which accounting method is commonly used by real estate agents?

Most real estate professionals adhere to the cash-basis accounting method as recommended by the IRS. This method records income, like rent, when received and deducts expenses when paid.

Is Quicken suitable for real estate professionals?

Quicken is a comprehensive solution for real estate professionals, offering features that manage both personal and small business finances. It supports budgeting, investment tracking, and bill management. Additionally, Quicken allows users to generate detailed financial reports that display income, expenses, net worth, and investment performance.

What are the best tax software options for real estate agents in 2023?

The top real estate accounting tools for 2023 include:

• Bench: Rated best overall for real estate agents.
• Zoho Books: Known for its useful integrations.
• FreshBooks: Top choice for property management accounting.
• Xero: Best for agents who need mobile access.
• QuickBooks: Recommended for supporting business growth.