Managing finances as a real estate professional comes with unique challenges—irregular income, varied expenses, and complex tax requirements, all of which can make bookkeeping feel overwhelming. Without the right system in place, tracking transactions, organizing receipts, and preparing for tax season can quickly become a time-consuming task.
This is where leveraging the right accounting software can be a game-changer. From tracking commissions and deductions to managing cash flow and vendor payments, the right accounting software can simplify your day-to-day financial management and significantly reduce the risk of errors.
Want to take your efficiency to the next level? When you combine accounting software with expert-tailored bookkeeping guidance, you can focus on growing your business without the stress, knowing your finances are being well-managed by a competent team of professionals and software that meets your needs.
The Best Accounting Software for Real Estate Professionals
With dozens of software options available, it’s important to consider the pros and cons of each so you make the right decision for you and your business. Below are six of the best accounting software programs for real estate professionals.
1.REI Hub
REI Hub is one of the only software solutions specifically built for real estate professionals. Key features include unlimited bank account connections, advanced reporting, and tax-ready IRS Schedule E reports, making it a great option for real estate professionals wanting to manage their bookkeeping and reports easily.
Pros:
- Offers a 14-day free trial
- US-based support team
- Property, unit, and portfolio-level reporting
- Double-entry accounting
- Options for monthly or annual subscriptions
Cons:
- Tiered pricing based on unit count
- No features to send out payments or invoices
- Does not provide full rental management solutions
REI Hub may be best for real estate developers and investors who manage less than 20 units.
2.QuickBooks
Well-known for its robust capabilities and features, Quickbooks is a go-to accounting tool for many real estate agents. It offers an intuitive interface, customizable reports, and seamless income and expense tracking. However, it’s not built specifically for real estate, meaning some tasks—like trust accounting and escrow—may require manual workarounds.
Pros:
- Widely recognized platform
- User-friendly design
- Customizable reports
- Syncs with various real estate tools
- Grows with your business (scalable)
Cons:
- Lacks industry-specific features
- Pricing can add up with additional features and users
- Some features require advanced accounting knowledge
QuickBooks is a solid choice for real estate agents who need a flexible, easy-to-use accounting system. However, if you manage complex property transactions, you may need additional tools or workarounds to develop them.
3.FreshBooks
FreshBooks focuses on saving time and accelerating payment processes for real estate investors. It’s efficient in expense sorting, client management, and diverse payment options. Key features include hour-tracking options to better understand your team’s performance, customizable estimates, and late payment fees and reminders.
Pros:
- Extremely affordable compared to other software
- Sales tax tracking
- Customizable invoicing
- Instant payment acceptance options
Cons:
- Limited clients in most affordable plans
- No client portal
- Additional cost to add team members
FreshBooks is best for solo agents or small real estate businesses looking for a customizable accounting solution.
4.Appfolio
Appfolio is a top choice for real estate investors managing large rental portfolios. It addresses common needs such as maintenance request management, automated payments, and online lease facilitation.
Pros:
- Features are updated and added regularly
- Easy scheduling and paying vendors system
- Batch invoicing
- Great customer service
Cons:
- Lacks pricing plans designed for real estate professionals with a smaller portfolio
- High minimum monthly fee
Appfolio is a great choice for real estate professionals with large portfolios who need seamless integrations and maintenance options.
5.Zoho Books
Zoho Books offers several unique features, making it a great choice for small-to-midsize businesses with multiple real estate properties. It allows businesses to keep financial and tenant records separate for each property and streamlines property-related tax calculations, credits, and deductions.
Pros:
- Free version available
- Affordable monthly plans
- Full accounting features
- More than 50 business tools available for integration
Cons:
- Limited user access and additional costs for more users
- No real estate-specific features
- Integrations may cost extra
Zoho Books is a great option for real estate professionals looking for niche features.
6.Wave
Wave includes everything new real estate professionals need, including double-entry accounting, invoicing, and in select countries, payroll services. No subscription is required; the interface is relatively user-friendly and has no learning curve.
Pros:
- Free version offers essential features
- Ideal for agents on a budget
- User-friendly interface
Cons:
- Lacks more advanced features
Wave is best for new or advancing real estate professionals who have simpler accounting needs and a smaller budget.
How to Keep Finances Organized Year-Round
Staying financially organized requires a proactive approach. Understanding the unique needs of your business and choosing an accounting software that matches the way your business operates is crucial.
Set Up Your Software for Success
To set your software up for success, start by creating specific categories for common real estate expenses. This may include marketing, licensing, travel, client gifts, and any transactions you may commonly see during a specific period. Syncing your bank accounts and credit cards with your account software, if applicable, ensures that your transactions are automatically tracked, reducing the risk of missing important expenses or transactions.
Additionally, automating your invoicing procedures, payment reminders, and recurring payments can help maintain a consistent cash flow throughout the year.
Daily, Weekly, and Monthly Financial Habits
Beyond the setup, establishing daily, weekly, and monthly financial habits is essential for success. Each day, record and categorize expenses immediately to prevent backlogging and transaction inaccuracies. Each week, reconcile bank statements and review any pending payments to ensure your accounts are in order. At the end of each month, use your accounting software to generate financial reports, analyze deposits and withdrawals, and help you make informed business decisions.
Using Digital Tools to Stay Paperless
One of the best features of accounting software is the option to keep records paperless. Saving important documents such as contracts, agreements, and transaction confirmations in secure cloud-based folders ensures easy access and protection against loss or damage.
Preparing for Tax Season with the Right Tools
Tax season can be overwhelming, but the right accounting software can help simplify the process for real estate professionals by generating tax-ready reports with just a few clicks. Keeping track of income, expenses, and deductions within your software throughout the year helps save time and reduces the potential for errors when it’s time to file.
One of the largest benefits of using accounting software is its ability to categorize deductible expenses specific to your real estate business. This may include mileage for showings, client dinners or entertainment, home or commercial office deductions, and any marketing expenses you incur while advertising your business. Keeping these expenses organized ensures you maximize your tax deductions while remaining compliant with IRS regulations.
Mistakes to Avoid When Preparing Taxes
These common bookkeeping mistakes can lead to financial headaches when it’s time to file.
- Failing to separate personal and business finances complicates tax filing and leads to inaccurate deductions.
- Neglecting to track small expenses that would add up over time and offer additional deductions.
- Waiting until the last minute to track and organize financial records.
- Relying solely on accounting software without setting it up for success and using it properly.
Avoiding these bookkeeping mistakes can help ensure tax season goes smoothly. For more in-depth tax strategies for real estate professionals, check out our guide: Navigating Tax Season: Bookkeeping Tips for Real Estate Agents and Brokers.
When to Lean on Professional Bookkeeping Services
While accounting software helps simplify financial management for real estate professionals, a professional bookkeeper can boost your efficiency further. Professional bookkeepers can assist with the initial setup of your software so it meets the specific needs of your real estate business.
By combining accounting software with a professional bookkeeping service, you can focus on growing your business, knowing you have a well-structured financial system to minimize tax liabilities, maximize deductions, and maintain accurate records.
At the very least, a professional bookkeeping service can offer peace of mind and long-term stability, as bookkeeping is the foundation that makes tax prep and financial planning easier.
Grow Your Business With the Right Tools and Support
Selecting the right accounting software for your real estate business’s needs is crucial for keeping your finances organized and yourself prepared. Remember, the right accounting software depends on various factors, including your team’s size, portfolio, integration needs, and budget.
Whether you’re a solo agent or a professional managing a growing portfolio and team, investing in the right tools, establishing good financial habits, and leaning on professional accounting services will set you up for a stress-free year and long-term success.
Need help from a professional bookkeeper to set up game-changing accounting software to simplify your finances? We can help. Contact us today to get started.
By Katherine White
