Monday, April 14, 2014

Rental Profit/Loss Calculator - Caleb

Introduction
My wife and I own and manage a fourplex that has several sources of income and many monthly expense items. At the end of each month we manually track down and total both revenues and expenses to calculate profit and ultimately tithing. The current process involves looking through bank statements online and tallying cash flows in a spread sheet before my wife calculates tithing in a paper note pad. At the end of the year when we report profit – and more specifically, tithing – the best record we have is the little notebook, and we just hope we kept all the records in the same notebook.
My solution is to create a sub procedure that will go out to the internet, log into Mint.com where all of our financial data is aggregated, import transaction data into an excel spreadsheet, and manipulate the data to show what our revenue, expenses, profit, and tithing is for each month. This data will also greatly simplify yearend tax reporting for our business. Currently my wife spends 1– 1.5 hours at the end of each month manually entering all of the applicable cash flows in to the spreadsheet above. Later, usually on a Sunday morning, we’ll go back and look at the numbers to assess how much tithing to pay. Finally, when I go to do my taxes at the end of the year, I typically spend 3 – 4 hours going from tab to tab in the spreadsheet verifying the cash flows. In addition, I go back to the bank statements to look for any cash flows that were accidently omitted originally. Thus, we typically spend ~20 hours per year managing data input tasks that can be automated.

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