Example Real Estate Chart of Accounts (CoA)

Real Estate Chart of Accounts

A real estate bookkeeping chart of accounts serves as a comprehensive and organized framework that includes a wide range of categories and subcategories designed specifically to classify financial transactions within the real estate industry. By implementing this tailored chart of accounts, real estate investors, property managers, and other professionals can systematically organize their financial records, which in turn streamlines financial reporting and enhances the overall understanding of their business performance.

The chart of accounts not only helps to maintain a clear and consistent financial record, but it also allows real estate professionals to effectively analyze their income, expenses, and cash flow. By breaking down financial transactions into various categories such as property management fees, maintenance costs, and rental income, real estate investors can easily track their performance and make informed decisions to optimize their investment strategies.

Additionally, a well-structured chart of accounts ensures that financial data is organized in a way that aligns with standard accounting practices, making it simpler for accountants and tax professionals to review and process the information. This ultimately saves time and reduces the likelihood of errors in financial statements, leading to more accurate and reliable reports.

In this article, we will provide an example of a real estate chart of accounts that can serve as a starting point for investors looking to establish their own bookkeeping system. This example will cover the essential categories and subcategories necessary for an effective real estate bookkeeping process, and can be customized to suit the unique needs of any real estate business.

Here’s a sample real estate bookkeeping chart of accounts:

Assets
1.1. Current Assets
1.1.1. Cash
1.1.2. Accounts Receivable
1.1.3. Prepaid Expenses
1.2. Fixed Assets
1.2.1. Land
1.2.2. Buildings
1.2.3. Leasehold Improvements
1.2.4. Furniture and Equipment
1.2.5. Accumulated Depreciation
1.3. Other Assets
1.3.1. Security Deposits

Liabilities
2.1. Current Liabilities
2.1.1. Accounts Payable
2.1.2. Accrued Expenses
2.1.3. Tenant Security Deposits
2.1.4. Current Portion of Long-term Debt
2.2. Long-term Liabilities
2.2.1. Mortgages Payable
2.2.2. Notes Payable

Equity
3.1. Owner’s Capital
3.2. Retained Earnings
3.3. Draws or Distributions

Income
4.1. Rental Income
4.1.1. Residential Rental Income
4.1.2. Commercial Rental Income
4.2. Other Income
4.2.1. Late Fees
4.2.2. Application Fees
4.2.3. Laundry Income
4.2.4. Parking Income

Expenses
5.1. Advertising
5.2. Bank Fees
5.3. Commissions
5.4. Depreciation
5.5. Insurance
5.6. Legal and Professional Fees
5.7. Maintenance and Repairs
5.8. Management Fees
5.9. Office Expenses
5.10. Property Taxes
5.11. Salaries and Wages
5.12. Utilities
5.13. Travel and Vehicle Expenses