#Xero accounting software real estate how to#
#Xero accounting software real estate full#

But there’s still a lot to love about both systems. It’s important to note that both software are optimized for small to mid-sized businesses rather than for landlords, so when it comes to rental management you may still be better off looking at industry-specific software. However, their approaches are different and each has different pros and cons. With regards to their accounting features both Xero and QuickBooks are fairly similar and offer pretty much everything a small business owner will need. When it comes to deciding which accounting software to look at you’ve probably considered the other big name in the game QuickBooks. Related: Should your Use Quickbooks for Rental Properties?

You can’t track properties on a building and Unit level which is necessary for landlords with multi-units.

It can’t currently import contacts from other programs meaning it’s entirely manual.

The help center is aimed at regular businesses, not property investment.

There is nowhere to upload photos and other important documents, for example, a property inspection checklist with photos or lease documents.

The report center isn’t tailored to property investors.

#Xero accounting software real estate full#

It lacks full property management software functionality such as tenant screening, contacts, email, and SMS templates.

However, it’s a steep learning curve and you’ll never get the additional functionality of a property management specific softwareĪ few of Xero’s key weaknesses for rental property accounting are: The majority of their user base are business owners and this has a fundamental impact on the design, development, and support service.įor those willing to put the work in to become proficient using the software this weakness can absolutely be overcome. However, it is designed for businesses rather than real estate investors. The Limitations of Xero for Rental Property Accountingįundamentally, this software is excellent for comprehensive accounting. For more information on this, you’ll want to visit the Xero support center. Xero has a comprehensive and customizable reporting feature that allows you to adjust them to better suit your particular needs.

Once income and expenses have been logged and assigned to the relevant property you can run reports as well as see important information such as cash flow on your dashboard.Another easy way is to enter the receipt details at the moment you reconcile transactions in Xero. One, if you use Xero Bills you can create a new bill for these expenses, and while reconciling you can match that bill against the bank payment. There are several easy ways to record property-related expenses.You can’t however, split properties into their sub-units which is an important feature for users with Multi-Units. Now you can reconcile transactions and assign that income to the relevant property.There is also an option to enter each property name under this category. Enter the desired name of your tracking category, for example, Rentals or Properties.In the Accounting menu, select Advanced.First, you need to create your account and log in.To set up Xero for tracking your rental property income and expenses follow these steps:

Below we outline a quick step by step guide. Xero offers comprehensive support with many helpful articles written up by their knowledgeable team to help you get set up. This being said, once you’re set up and used to the software it will quickly make your accounting more efficient. Setting up Xero to properly track your income and expenses can be a bit of a challenge as the software itself comes with a steep learning curve when you first begin.

#Xero accounting software real estate how to#

How To Set Up Xero For Rental Property Accounting