LLC Formed, Property Bought… Now What? Your First 5 Accounting Tasks

So you formed your LLC and bought your first rental—huge congrats! 🎉

You’ve taken a big step forward as a real estate investor. But now that the dust has settled, a new question is creeping in:

What the heck do I do with the numbers?

If you're feeling unsure about your next accounting moves, you're not alone. Many new investors set up an entity, close on the property, and then get stuck when it comes to organizing the financial side of the business.

Here are the first 5 accounting tasks you should tackle right after your first property purchase—so you don’t get buried in receipts, confusion, or last-minute tax stress.

🌱 1. Open a Separate Business Bank Account

If you haven’t already, make this your very next step. Even if your LLC was just formed, it’s important to run all income and expenses through a dedicated business checking account.

Why?

• It keeps your books clean

• It helps protect your LLC status (hello, liability protection)

• It makes tax time 10x easier

Bonus Tip: Get a business credit card too, and only use it for property-related purchases.

🌿 2. Set Up a Chart of Accounts That Matches Your Real Estate Needs

QuickBooks (or whatever software you’re using) will give you a generic chart of accounts—but real estate investing has its own categories.

You’ll want to include accounts like:

• Rental Income

• Mortgage Interest

• Property Taxes

• Repairs & Maintenance

• Capital Improvements

Setting this up right from day one will save you hours of cleanup down the line. (And yes—this is exactly what we help with in our Fresh Growth Setup.)

🧾 3. Start Tracking Every Expense

Even if you’re not 100% sure whether something is deductible—track it anyway. You can always sort it out later with your CPA or bookkeeper, but if it’s not recorded, it’s lost.

Common first-year expenses include:

• Appraisal fees

• Closing costs

• Lawn care

• Utilities (while vacant)

• Locks & security upgrades

• Lease-up costs (like tenant placement fees)

Pro tip: Create an "Ask Your CPA" account 👉 What’s “Ask Your CPA”? It’s a simple holding account where you can temporarily categorize transactions you’re unsure about—like a grey area renovation, travel expense, or closing cost.

This way, you keep moving forward without losing track of anything, and your CPA can help you sort it out when you meet.

📅 4. Create a Simple Monthly Routine

This doesn’t need to be fancy. Start by setting 1 hour on your calendar each month to:

• Categorize transactions

• Reconcile your bank account

• Review your income vs. expenses

• Save receipts or documents (like HUD statements or leases)

Think of this like your monthly garden weeding session—quick, consistent effort keeps things from becoming a jungle later.

🔍 5. Know the Difference Between Repairs and Improvements

This one gets a little technical, but it’s worth noting early on. The IRS treats these differently:

• Repairs = deductible right away

• Improvements = must be capitalized and depreciated over time

If you do a major project (like replacing a roof, redoing plumbing, or gut-renovating a kitchen), keep detailed records. A good accountant will help you categorize it correctly.

🌸 Final Thoughts: Don’t Wait Until Tax Time

It’s easy to put off accounting when you’re focused on managing your first property. But the sooner you get organized, the more confident you’ll feel making decisions—and the easier it’ll be to scale.

If you want help planting those first financial seeds, our Fresh Growth Setup service walks you through everything from chart of accounts creation to software setup and workflow tips.

📬 Ready to get your books growing in the right direction? Reach out today!