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[Music] hey this is Nick from income Dave's welcome to this video tutorial today we're jumping into QuickBooks with a pretty advanced technique that I hope will help your business quite a bit it's really helped mine and if you're in real estate I think it's it's almost essential and what we're gonna do today is we're gonna use QuickBooks to track our expenses and our entire accounting books for more than one business at a time all right now we're gonna be doing this all within one instance of QuickBooks so technically this is not something that QuickBooks can do but I've kind of developed a methodology that are used for my business that that works well and I'm able to do it so I'm gonna show you how to do this now so many really keep in mind this is an advanced technique and I'm gonna probably have a couple videos on it because there's some potential pitfalls and things I can potentially go wrong but if you can do this correctly and you have you know good handful of businesses I wouldn't say that we should do this with you know 15 or 20 businesses but you know four or five something like that I think it should work if you do it correctly you can save a bunch of money on all your QuickBooks subscriptions you don't have to get multiple subscriptions but you can also see all of your information for many businesses in one set of books again for those of us in real estate we have maybe different LLC's for our rental properties I'm gonna show you how we can split up the PLS for those different businesses but also see everything as a whole if that's something you want to you know understand our entire health of our business right so I'm gonna jump in with this and show you how I do it if you want to use this technique certainly go for it I would suggest you discuss with your tax professional first your CPA this is just a technique for managing the books this is not something that you know I would say you know is the end-all be-all only way to to do it alright so let's get in to QuickBooks and I'll show you exactly what I do and how it works so again I'm only gonna be logged in as one company here I'm not gonna be switching now you could you could sign up for whole accounts of QuickBooks so you can switch companies to manage your books that way that's fine that's the way QuickBooks would probably suggest you do it but then again everything is going to be separate so this is a potentially good way to bring it along one in the the key to this whole thing you have to be on QuickBooks Plus and you are going to enable what QuickBooks calls location tracking okay so what is location tracking and how do you turn it on let me show you so hitting your gear icon here we go to accounts and settings and if we go to advanced we're going to see that let's sit here so right under track classes which is on we have track locations which is off I'm going to turn that on okay now track locations is what it's called and what do we want to call our locations I'm going to call my locations businesses so what is this thing this is QuickBooks way of kind of accommodating for I believe the reason they introduced it was kind of more for like franchises or you want to restaurant you in multiple different locations of the restaurant this is how you can track pls buy restaurant see which which site is outperforming the other it was originally designed for you know one employee ID number one one tax ID number with multiple different locations I'm going to be using it to track information for different employee ID numbers okay so turn it on and click Save so what you know where do I see this thing working and how can I utilize it well now that you've turned it on all of your expenses your sales almost all transactions it's important almost all transactions have the option for it but not all so if I were to grab an expense and create a new expense we see that we have a new field showing up here called business because I decided to label it business so let me kind of show you how an expense might work DBC supply company if I were to create a new vendor and pay money from my checking account I'm gonna make all the payment dates on this 2020 just so I can report them all together okay and let's say that this was for what's something that I could have spent on that's okay so a properties utilities gas right so gas bill Alex say it's $200 and then the class I'm gonna kind of turn off for now I'm gonna actually be rental that's another discussion we're gonna have and then it's for that property save and close oh and I didn't even use the business so I'm going to Colette in and I'm gonna say that my one business is called income Diggs add income Diggs okay so that's one of my businesses right all right so save and close now let's say that I had another expenses to take that same expense and copy it and say that I paid them something similar on the 18th it was for gas as well it was for three hundred forty five dollars but it was for a different property and it was for maybe I have an LLC for four of six the 31st Street LLC right so you do that and hit the Save button and then save and close okay so now I've kind of got those transactions and I'm gonna start using them so let me grab a report a balance sheet actually a profit and loss and show you how we can kind of look at this then so remember that I made those transactions in 2020 and the reason was that I want to be able to to see my P&L for that so let me grab custom dates and I'm just gonna do one one twenty twenty two twelve thirty one twenty twenty and I'm going to say total only I'm gonna run that report and of course because of the two transactions that we recorded $200 and H $345 we have five hundred forty-five dollars on our pn l i'm going to save this customization quick you know 20 20 okay so this is looking good so what what happened is I was recording transactions forced different businesses but I'm right now looking at my profit and loss for all businesses I'm gonna add just a couple more transactions I'm going to add a couple invoices okay I'm gonna let's see grab Jack and Jill Smith let's say that on 6 1 20 20 I had an invoice for rent 850 dollars and then my business let's say that this is income digs okay save it and then I'm also going to I'm gonna copy this and I'm gonna say well we add one for Jack Johnson same gage rental income for a different property alright and then my class here is going to be rental and then my business here is gonna be 406 Oh so yeah that would probably be the customer I'm using before 630 first Street ok let's save and close up all right so now here's my profit and loss for those two businesses together for the year 2020 right two thousand ninety five and income and 545 expenses for a net operating income of fifteen fifty no it's cool right so this is everything so I would probably take this report and I would call this all businesses right profit and loss and I'd save that customization now if I want to see it by business well I don't I use this here display columns by and change that to business and just like that I'm able to see a profit and loss split by 406 31 31st Street LLC and income Dix just like that right so this is coming here maybe 900 income dates made 650 and the total combined is this right you know let me say this custom is it I'll just save it that's what it was so now I can see both my total and my split by business right here okay so it's super super useful to do if you want to just have a report for one business that could be useful to maybe you're gonna make that part of a report group that goes to management or the partners right so you can customize this to say you know it just give me the filter this five business and just give me income Biggs run that report and then let's turn off this column or maybe we'll make the column months okay and we save this customization as profit and loss income Diggs okay and then I probably take this and change the name of it to income Diggs save customization okay so if we are tracking let me just pull that up again an expense or a invoice we can use this business field to give us the power to report by business now it's not that easy for everything what I mean by that is for one you need to make sure you use this field all the time if I were to look at my P&L for this year for example which is 2019 and I were to do it by all businesses okay and then I were to split this by businesses well guess what it's gonna show up it's not specified right and so what you don't want is you don't want to mix of here's things that were categorized correctly with by business and then here's those that aren't so you have this little not specified bucket and it gets even more complicated and and difficult to to kind of maintain when you look at the balance sheet now when I say it's complicated it is but if you start doing it right I'm going to show you how to do that how to do some reconciliations you'll be able to have a cheat by business a income statement by business and pretty much any other report that you want by business is exactly what I do so in my real estate business I have four different entities that own real estate and I file for different tax returns for all of those different entities I have one QuickBooks instance where I use this location tracking to put everything in its proper bucket and have my balance sheets my income statements everything is one another thing to think about is branding so you're only gonna log in to QuickBooks in one as one company and you're only gonna deliver invoices with one branding sales page as well so that's something to think about the way I deal with that is I kind of have one of my businesses act as the management company where all the sales forms are delivered with that logo but it is something to consider you're not going to be able to have different sales forms for all those locations nonetheless I think it's a great way to save on subscription prices and to have everything in one place we're gonna have some follow-ups on this to show you some more advanced techniques to make sure your book stay in line but for a lot of you've been asking for this and you know QuickBooks isn't giving it to you and I understand why they want things to be separate from a legal standpoint that kind of makes sense but again for us real estate investors we have many different entities and it kind of makes plenty of sense for us to have it all here all right so let me know if you have questions about this specifically again don't engage in this until you're ready for it and if you want to watch the next few videos I encourage you to do that and definitely talk through with your CPA as well until next time let me know if you have questions happy to help out any way that I can thank you [Music]