Property Development - Accounting Software, Xero Cashbook?

What do people use for their bookkeeping software for a property development project?

I've done a quick search and saw discussion over investment properties/tenants etc. here:

What software (if any) do you use to keep track of multiple IP's?

Just wanted to know if people have any suggestions for how to keep tax time easy through software/excel specifically in regards to Property development (which is different to just investing cause of GST, BAS etc.)?

Xero Cashbook anyone?

Xero Cashbook | Xero

 

No No No

Xero and the like all work on the basis that a dedicated bank account is established for the dev as they use the bank data feed and you apply "rules"" that it learns. Transactions falling outside this need to be caught ie loans and costs paid from other sources. It gets complex and can be a mess and then relies on proficient data allocations and also good setup. It then has some shortfalls

Here is where it fails:
- Apportioning for each unit / lot
- Apportioning of the GST on a unit per unit basis doesnt work
- Default 1/11th GST can occur with non-proficient setup and use of the s/ware
- Many payments without GST will be incorrectly processed as containing GST
- Incapability of determining GST on a lot by lot basis

My developer tool kit explains the issues and provides a sample 50/50 duplex example. For other project types custom configuration is key to low cost accounting, profit determination, costs for QS reports, GST on sale and apportioning for claiming GST on sales.

I assure developer clients (small devs) that my method will result in cheaper accounting outcomes than any software. And yes you pay me to configure it to get that assurance. If you steal it and DIY and F^C& it up I (or any other accountant) will charge a bit more to fix the mess.

For large developers a project costing accounting system may be relevant.

 

Xero Cashbook is not a bad idea. But pricey. I am using online bookkeeping software ZipBooks. Quickbooks and Sage are also good for this. But again they are also pricey.

 

For managing investment properties, check out:

* Re-leased: Re-Leased | Cloud-based property management software
* Real Estate Investar: https://info.realestateinvestar.com.au

The majority of our developer clients use either:

* Xero: www.xero.com
* QBO: www.intuit.com.au

One of the benefits of the above is that you can electronically attach the invoices to the transaction. Therefore, cuts down paper files.

If you have a good relationship with your accountant, they can assist with setup, etc.

 

Understanding the basis for records is the first issue. Developers who dont know what they are accounting for could use a graffitti wall and achieve better outcomes than well branded software. I would avoid Xero. Its not great.