Real Estate
Every property tells a different story. We track income and expenses by address so you know which investments are working and which ones are dragging down the portfolio.
The Investment
Real estate looks straightforward on paper. Collect rent, pay the mortgage, pocket the difference. But the reality involves tracking dozens of expense categories across multiple addresses. A plumber at one property, an insurance renewal at another, and a new water heater at a third. Without organizing finances by property, you lose sight of which investments are actually performing.
San Diego adds its own complexity. Property values are high, which means property taxes and insurance premiums follow suit. The short-term rental market is active near the coast but brings platform fees, cleaning costs, and turnover expenses that traditional rentals never see.
Who This Covers
Who This Covers
Property managers handling client portfolios, investors with residential or small commercial holdings, short-term rental operators working with Airbnb and VRBO, and HOA boards managing member funds and reserves.
The Friction
The Friction
The landscaper handles three properties but sends one invoice. The handyman fixes two units and you pay with a single check. Without proper allocation, expenses get dumped into generic categories and you lose visibility into what each property actually costs.
What We Track
We organize everything by property. Every receipt, every mortgage payment, every repair invoice gets tagged to the correct address. Your books stop showing one big bucket of “maintenance expense” and start showing exactly what the fourplex on Adams Avenue cost this year compared to the condo in Pacific Beach.
We also handle the liability side correctly. Security deposits are not income. They sit on your balance sheet as money you owe until the tenant moves out. We track these separately so your financial statements reflect reality and you never accidentally spend money that belongs to someone else.
CapEx vs Repairs
CapEx vs Repairs
A new roof gets capitalized and depreciated over its useful life. A patched roof is a current expense. We make this distinction correctly so your depreciation schedules are accurate and your tax deductions are maximized at the right time.
Contractor Compliance
Contractor Compliance
Every handyman, cleaning service, and property vendor gets tracked. We collect W-9s throughout the year and prepare 1099s in January. This prevents the scramble and keeps you compliant with IRS requirements.
Common Mistakes
The most frequent error is treating capital improvements as regular expenses. Installing new flooring or replacing an HVAC system should be capitalized and depreciated over time. Expensing these items immediately can trigger audit attention and throws off your understanding of true profitability.
Another issue is commingling funds. Property managers sometimes mix client funds with operating accounts. Investors use the same credit card for personal purchases and property expenses. Untangling this at tax time is frustrating and expensive.
Security Deposit Confusion
Security Deposit Confusion
Recording tenant deposits as income inflates your profit and creates problems when people move out. We keep deposits on the balance sheet as liabilities where they belong, tied to the specific unit and tenant.
Mortgage Misallocation
Mortgage Misallocation
Only the interest portion of your mortgage payment is deductible. The principal payment reduces your loan balance but is not an expense. We split these correctly for each property so your deductions are accurate.
What Changes
You gain real clarity on your portfolio. Some properties look busy but barely break even after accounting for vacancy, repairs, and management overhead. Others quietly generate strong returns. This data informs whether to hold, sell, or acquire.
Tax preparation becomes straightforward. Your accountant receives a complete Schedule E package with every property detailed separately. The conversation shifts from cleaning up messy data to discussing strategy around depreciation, 1031 exchanges, and timing of sales.
Investment Clarity
Investment Clarity
When you know the true yield on each property, you can make better decisions about where to put capital. The beach rental might have appreciation potential while the inland fourplex delivers better monthly cash flow. Data guides the choice.
Lender Confidence
Lender Confidence
Banks want clean financials before approving loans. With organized books showing property-level performance, financing your next acquisition becomes easier. You walk into the meeting with answers instead of guesses.
San Diego's Small Business Bookkeeper
The Next Step:
A Short Conversation
A quick call to tell us about your business. We'll listen, answer your questions, and give you a clear price quote.
