439: Real Estate Bookkeeping: A Crash Course for Getting Your Financials in Check w/Sarah Bratcher

Real estate bookkeeping is one of the tedious but necessary tasks that comes with owning a rental property. Unsurprisingly, it’s one of the things that can make or break your real estate business. Can you do your own accounting? Should you hire a bookkeeper? It’s easy to become overwhelmed by your financials, which is why we’ve brought in a specialist to deliver a crash course on this crucial topic!   Welcome back to the Real Estate Rookie podcast! Today, we’re joined by certified public account (CPA) Sarah Bratcher, who is going to share five things every investor should know about bookkeeping. Along the way, you’ll learn the differences between CPAs, bookkeepers, and financial planners so that you can make the right hire for your real estate business. Sarah also shares some of the biggest red flags to watch out for when hiring a CPA, as well as some telltale signs that it’s time to let your current CPA go!   But that’s not all! Commingling personal and business income is an issue that gets investors in hot water with the IRS, but fortunately, Sarah has a simple solution that will help you avoid legal pitfalls altogether. You’ll also learn how to set up software, systems, and accounts that make your life easier! In This Episode We Cover Five things every rookie investor should know about bookkeeping How to choose an accounting software that best aligns with your investing goals Red flags to look for when hiring (or firing!) a certified public accountant (CPA) Why you NEED an investor-friendly tax preparer (and how to find one!) Preventing liability issues by separating your personal and business income The differences between CPAs, bookkeepers, and financial planners (and which one to hire!) And So Much More! Links from the Show Ask Your Question on the BiggerPockets Forums Join BiggerPockets for FREE  Find Investor-Friendly Tax and Financial Experts Buy “The Book on Tax Strategies for the Savvy Real Estate Investor” Find Investor-Friendly Lenders See Ashley at BPCON2024 in Cancun! Real Estate Accounting for Newbies (00:00) Intro (00:58) Advice for New Investors (07:44) Software & Business Accounts (17:15) Systems & Chart of Accounts (24:48) Hiring (and Firing!) CPAs (30:04) HUGE Bookkeeper Red Flags (33:06) Connect with Sarah! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-439 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices