TIP #8: ALL RECORD-KEEPING PROGRAMS ARE NOT

CREATED EQUAL.

Once you understand that your record-keeping system needs to

generate financial reports for various users, you are ready to decide
what kind of system will work best for you.
If you need to generate reports once a year, the simplest method is to take
receipts and total them, by category, using an adding machine with a tape to
keep track. Enter the numbers onto a spreadsheet and you have an Income
Statement. This system sorts your receipts and lets you avoid reconciling
bank and credit card statements, which takes times — and costs money!
Watch for duplicate receipts! They add to confusion as your
bookkeeper or accountant can easily forget and enter them twice. This
means your tax return will be prepared based on incorrect documentation.
Moreover, there is no benefit to submitting duplicate receipts, since you will
have to pay for someone to sort the receipts and identify duplicates. Avoid
the hassles by shredding duplicate receipts!
If you need more frequent reports, or need to generate reports on a
number of properties, adopt a program that works for you, or one your
bookkeeper is familiar with. QuickBooks is good if you/your bookkeeper is
supervised by a qualified accountant It allows you to make changes to