By . Tracking Spreadsheet. At Tuesday, April 20th 2021, 20:27:14 PM.
If you have Microsoft Excel, you can create budgeting spreadsheets to help you manage your money. Instead of buying expensive software that will only be used for your budget, spreadsheets can be used for a variety of tasks. If you dont have Excel, you can find free spreadsheet applications online in which to manage your budget. Most spreadsheet applications have built in formulas and functions that will do the math for you so you dont have to. You can keep a running balance of your accounts and you can have each category totaled as well. You can keep it as simple or make it as sophisticated as you please. Once you design the type of budgeting spreadsheets you want to use, it will be easy to copy it for subsequent months or years. You can also use just one sheet and create tabs for each month.
Spreadsheets are an absolute must for every internet marketer, or business owner. If you are not familiar with them, then you should familiarize yourself with Google Spreadsheets. These sheets can be accessed from your Google account, and are 100% free, safe and secure, and very easy to use. Plus you can access them from anywhere in the world where there is an internet connection. If you are new to online marketing, a spreadsheet may seem like a waste of time to you, but as you start building your webpages, and websites you will begin to see the importance of keeping all information stored neatly in one file, a several files. So I recommend you start off by keeping all your information neatly organized in order to avoid having to clean up a huge mess later.
Since this is a residential rental apartment building it makes sense to include rental income in your real estate spreadsheet. Thats obvious. What isnt so obvious are things like interest on tenant deposits, subsidies, tax refunds, etc. When youre building the spreadsheet you need to estimate when those revenues will arrive, and that relates to the number of tenants, the rental rates you charge, how long the lease term is for each tenant, etc. You also need to assume some late payments, evictions, and vacant units. If you havent invested in the area before this can be a challenge. You can gather data on that by speaking with local real estate agents, lenders, and tax agencies, or subscribe to an industry database that covers the local area. In most locations you also need to consider taxes. Are these charged up-front? As part of the mortgage loan payments? How frequent are they? When do they actually need to be paid? Are there any accounting costs? Can you use any tax credits or breaks? How do you calculate depreciation if that is a tax deduction? Taxes can be quite complex and you need them in your calculations or your investment value estimates will be incorrect.