What is the best way to set up a chart of accounts for a real estate investment company?
A chart of accounts for a real estate investment is typically not complex, but should include sufficient detail to properly account for and manage cash, property assets, mortgage debt, rental income, and operating expenses. Two more important factors are adequate accounting controls to ensure timely collection of rental income and separate companies, departments, or sub-accounts to account for and manage each property’s finances and cash flow. Our quick Internet research did not locate a standard or typical chart of accounts for a real estate investment company; however, a chart of accounts is nothing more than a listing of the bookkeeping accounts that, when properly organized, tell a historical story about your business. Most small business accounting software, like QuickBooks and Peachtree for example, include flexible charts of accounts recommended for particular types of businesses that can be modified to a business specific needs. You can review the bookkeeping software available
