QuickBooks have become an extremely convenient tool to manage invoices, finances, payroll, accountancy, and overall bookkeeping solution. It has been used in various industries, companies and even people tend to use it to have quality financial management. So, when a company sells land that they have decided from an investment perspective, this particular situation involves two entries, debit Cash to the amount received, credit Land for the land being sold for the amount.
This will be recorded in the general ledger account and it applied for the land being sold. Then, recording the differences between the two as a gain or loss based on the sale of land. If you use QuickBooks to manage your real estate selling and buying, you are in a better position.
QuickBooks and Real estate
Many people have ignored the good part of QuickBooks that one can also think of for using it. It is the real estate section that QuickBooks can help you with. Often time, businesses buy and sell a property that is a fixed asset to gain money and investor to do other business stuff. It is when QuickBooks can come into the picture to help you manage your buying and selling at ease. It is not surprising how Intuit has made it a platform for accountancy and bookkeeping. The software is very easy to learn, cost-effective, and if any issues arise one can also figure it out to handle.
Why use it for Real Estate?
There are several features that a user can make use of with this software.
- It is a one-stop marketing tool
- It also features merchant tools
- There are product specification features which a user can make great use of
- It offers training solution for employees who are new to an accountant software
- It also works effectively with the feature of product and supply management
What QuickBooks can do for Property Management?
- Easy Information Possible
QuickBooks is an easy-to-use platform that indeed depicts the ability to use, access, and gives it a try. Internet is needed to make use of the software and one can have the information ready at a single spot.
It isn’t time-consuming; you will be able to occupy yourself with other important work roles whilst it handles your property management work. It is the one and the only solution to make time management effective. You can handle your real estate dealings and get the most out of them. It performs most of the calculations, and you need not have brainstorm enough.
- No Paperwork
Your property dealing can go paperless and smarter with spreadsheets and automated sheets. Saving all your dealings, transaction details and property-related information to QuickBooks will be good for your future references too. It will be able to make your accounting activities done with full accuracy and no mistakes.
- Easy Activity Update
You can be able to keep a check on all the activity that you have handled in accounting terms. A minor mistake can make blunders; therefore, QuickBooks allows you to be one step ahead of time and record all things at ease.
- Trace Transactions
When you have QuickBooks, you need not have to worry much. Keep a close eye on every transaction so you will be sure where, when, and how much money you have spent. It will also be good for your business, plus you will be able to know if you are dealing in expenses or gains.
Steps to Record Sale of Property
- You will have to create an income account if you haven’t, which can be termed as a gain or loss on asset sale
- You will be required to remove the asset as well as the accumulated depreciation from the QuickBooks software along with their journal entry
- In his scenario, debit the accumulated depreciation
- Next, Credit the asset which is the property that you have sold
- Now, as you have received the cash, you will debit the cash account
- Finally, as you have sold your asset which is your property, you can credit your gain over there.
- Now, you will be left with the book balance being zero which is basically if full depreciated cash that you have received is gain!
Remember, you must without fail record the sale in your journal entry. The bank will receive payment for the proceeding of your house sale. Your fixed asset account for house and building, renovation gets zero. The balances must be maintained in your journal entry.
It looks tough however, once you follow the step, you will have a clear perspective for the same. Make sure you go through the steps one by one and see to it how to go about in your QuickBooks.