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Frequently Asked Questions

What is the difference between a Profit and Loss and Balance Sheet?

A Profit and Loss tracks the income and expenses of the company. A Balance Sheets tracks the assets, liabilities, and owner equity of the company.

Why isn’t the full mortgage payment I made for a property showing on the Profit and Loss?

A mortgage payment is broken up into typically two to three parts – principal and interest, or principal, interest, and escrow. The principal goes to pay down your loan, which is reported on the balance sheet. Your interest gets expensed up front and is what you see on the Profit and Loss. The escrow portion gets held by your lender until they pay out for taxes and insurance. You’ll see the taxes and insurance show up on the Profit and Loss as soon as they are paid for through the lender.

How do I see how much money I have put into a project so far?

In QBO, go to the Reports tab and run a Balance Sheet. Filter the dates for “All Dates” and click Run Report. Find the project under Assets. The total for that project shows. You hover over the Total number for the Asset and click the hyperlink. This will show you an itemized list of what has been spent on the project.

What will a lender ask me for if I’m trying to get a line of credit?

Typically a lender will ask for a Profit and Loss and Balance Sheet for the current year. We help provide these up-to-date reports and assist in other reporting requests from the lender.

Do you have CPA’s you recommend that specialize in real estate?

Yes! We have wonderful partnerships with CPA’s in the real estate investment space that are passionate about helping investors.

What if I haven’t filed my taxes for last year yet?
What do you need from me to get started?
Why do you need my property HUDs?

When you purchase a property, there are more parts involved than just the purchase price. We need to record how much you spent in closing costs, what the loan amount is, and how much money you need to bring to close, or how much you will be receiving back from closing.

Why do you need my mortgage statements every single month?

The mortgage statements show what the principal, interest, and escrow breakdown is each month. It also shows us when the lender pays out money from the escrow account for property taxes and insurance.

Do you offer deal analytics or consulting services?
When do I get my reports every month?

We provide reports to clients by the 15th of every month.

What happens with the charges on my personal cards that were supposed to be for the business?

Any charges you charge to your personal account for business, please let us know. We will include these in your contributions to the company. You can reimburse yourself for these amounts if you want to.

You don’t book refinance proceeds as income, right?

Right. We book proceeds to match the refinance HUD that you get from the title company.

What is a Chart of Accounts?
What accounting software do you use?
How do I connect my bank accounts and credit cards to Quickbooks Online?
What are you able to see and do with a user account for my bank?
I’m already using a property management software. Isn’t that the same?
What is a good CRM I should use for my deals?