1. Cost:
a. Definition: Cost refers to the amount spent or incurred in acquiring an asset or
producing a product or service.
b. Timing: Costs are typically incurred at the time of purchasing or producing goods
or services, regardless of when they are used or consumed.
c. Example: If a company purchases machinery for manufacturing, the cost will
include the purchase price of the machinery along with any additional costs
incurred to get it operational (such as installation costs).

2. Expense:
a. Definition: Expense refers to the cost incurred during business operations to
generate revenue.

b. Timing: Expenses are recognized on the income statement when goods or
services are consumed or used up, or when the benefit of the expenditure has
expired.
c. Example: The salaries paid to employees, rent for office space, and utility bills
are all examples of expenses. These costs are recognized as expenses in the
periods they are incurred, typically matched against the revenues they help
generate.

In summary, while both cost and expense involve spending money, the key difference lies in
their timing and how they are treated in financial statements. Costs are initially recorded
when assets are acquired or produced, while expenses are recognized when those assets are
used to generate revenue or when other business operations are carried out.

At the bottom of forms such as Add property, Add Project, Add Income, Add Expense is the ability to attach Photos or PDFs. Simply click on ‘Browse’ to select photo or a PDF file.

No, at this time, you cannot add, edit, or delete any spend categories. You
cannot rename or hide existing ones or set any tax-deductible status for each
category. Please let us know if this capability is important to you and why?

Currently, TrackTCO is only available on iOS (iPhone) devices.

Yes, you can. You can only delete a portfolio, if there are no associated properties.
You can only delete a property, if there are no associated transactions. You can add,
edit or delete a transaction or a vendor at any time.
19. Is the cost of TrackTCO app tax-deductible?

Yes, you can. You can only delete a portfolio, if there are no associated properties.
You can only delete a property, if there are no associated transactions. You can add,
edit or delete a transaction or a vendor at any time.

We do not provide any tax or legal guidance. Please verify the answer to your question
above with an appropriate expert. In most countries any software used for property
management is considered a tax-deductible expense. You may be able to include the
cost of your TrackTCO subscription as a tax-deductible expense (please check with
your accountant or tax advisor as regulations and tax policies vary from country to
country).

a. Add a User: To add a new user to your account, follow these steps:
- Click on “Add a user.”
- Provide the new user’s phone number.
- An invitation text (SMS) invitation will be sent to their phone.
- The user must accept download the app and accept the invitation. They will be required to complete their registration. Each user is considered a
separate license (subscription) even if they share the same account.
- During Sign Up process, they must register using the same phone number as the invitation. To ensure maximum security, most notifications to users are

sent via SMS. The registration process also requires validation using a code to ensure the phone number being used is valid.
- Upon successful completion, the new user will be added to your account. Added users will have access to the same data as the primary account holder. Whether it is a family member, colleague, or teammate, added users will be able to view and edit the property information, the project details, and the
transactional/income-expense data.

b. Invite a Friend: Use this feature to share the app with your friends and
colleagues.
i. Invited friends must download the app, register to create their own accounts,
and signup for their own subscriptions.
ii. Invited friends will not share your account. They will *not* have any access
nor visibility into your account details, properties, portfolios, projects, or
transactions.

1. Cost:
a. Definition: Cost refers to the amount spent or incurred in acquiring an asset or
producing a product or service.
b. Timing: Costs are typically incurred at the time of purchasing or producing goods
or services, regardless of when they are used or consumed.
c. Example: If a company purchases machinery for manufacturing, the cost will
include the purchase price of the machinery along with any additional costs
incurred to get it operational (such as installation costs).

2. Expense:
a. Definition: Expense refers to the cost incurred during business operations to
generate revenue.

b. Timing: Expenses are recognized on the income statement when goods or
services are consumed or used up, or when the benefit of the expenditure has
expired.
c. Example: The salaries paid to employees, rent for office space, and utility bills
are all examples of expenses. These costs are recognized as expenses in the
periods they are incurred, typically matched against the revenues they help
generate.

In summary, while both cost and expense involve spending money, the key difference lies in
their timing and how they are treated in financial statements. Costs are initially recorded
when assets are acquired or produced, while expenses are recognized when those assets are
used to generate revenue or when other business operations are carried out.

a. Home Equity:
o Definition: Home equity refers to the portion of your home’s value that
you truly own. It is the difference between the current market value of
your home and the outstanding balance on your mortgage.
o Calculation:
Home Equity = Market Value of Home−Mortgage Balance
o Importance: Building home equity over time allows you to accumulate
wealth and potentially access funds through various means (e.g.,
home equity loans, lines of credit).
o Factors: Home equity increases as you make mortgage payments and
as your property appreciates in value.

b. Appreciation:
o Definition: Appreciation refers to the increase in your home’s value
over time due to market conditions, demand, and other factors.
o Effect on Equity: When home prices rise in your area, your home
value appreciates, which directly impacts your equity.
o Benefit: Appreciation can enhance your overall net worth and provide
opportunities for financial growth.

When purchasing real estate, the initial investment, including the down payment,
closing costs, and other upfront expenses, is a significant outlay. The money spent

today has a greater value compared to the same amount in the future due to the
potential earning capacity of the money (TVM principle). Therefore, a higher initial
TCO increases the opportunity cost of capital, meaning the funds tied up in real
estate could have potentially earned returns elsewhere.

TCO includes ongoing expenses such as maintenance, property taxes, insurance,
utilities, and repairs. These recurring costs occur over the life of the property, and
their present value needs to be considered. Future expenses should be discounted
to their present value using an appropriate discount rate to evaluate the true cost of
ownership. A higher TCO implies more future outflows, which, when discounted, will
reduce the present value of the investment’s future cash flows.

1. Convenience and Accessibility: Mobile devices allow property owners and
managers to track and manage costs anytime, anywhere. This flexibility ensures that
they can respond to financial matters promptly, even when they are away from their
desks. 
2. Real-Time Updates: With mobile access, users can receive real-time updates on
expenses, payments, and other financial transactions related to their property. This
immediacy helps in staying on top of all financial activities and prevents any
oversight that could lead to missed payments or increased costs. 
3. Efficient Decision-Making: Mobile access enables quick decision-making by
providing instant access to financial data. Whether it is approving a repair expense,
updating a budget, or reviewing recent transactions, users can make informed
decisions on the go. 
4. Enhanced Collaboration: Managing costs from a mobile device facilitates better
communication and collaboration with stakeholders, such as tenants, service
providers, or co-owners. Users can easily share information, approve expenses, and
coordinate actions without delay. 
5. Cost Management on the Go: Properties often require attention at unpredictable
times. Mobile access ensures that property owners and managers can handle urgent
financial matters, such as unexpected repairs or immediate payments, without
needing to be physically present at their office or home. 
6. Improved Productivity: Managing costs via a mobile device allows property
managers and owners to stay productive while on the move. They can efficiently
handle financial tasks during downtime or between appointments, maximizing their
time and reducing the burden of administrative tasks. 
7. Data Security and Control: Modern mobile applications often come with robust
security features. Managing costs from a mobile device allows users to maintain

control over sensitive financial data securely, with the ability to quickly address any
issues related to unauthorized access or fraudulent activity.

Higher TCO means more money is tied up in the property, which could otherwise be
invested in other assets. This represents an opportunity cost, as the money invested in
the property might earn a higher return elsewhere. The TVM (Time Value of Money)
concept helps in comparing the return on investment in real estate against other
potential investments.

The potential appreciation of real estate and its future resale value is the most important
factor. When evaluating TCO, it is essential to consider how much the property will be
worth in the future and discount that future value back to the present to determine its
worth today. If the property’s appreciation exceeds the TCO when discounted
appropriately, the investment may be deemed profitable.

TrackTCO and QuickBooks serve different purposes, though both are useful in financial
management.
1. TrackTCO:
o Focus: Designed for real estate investment management, TrackTCO
specializes in tracking total cost of ownership (TCO) for properties, helping
users manage real estate expenses and performance analytics.
o Features: It tracks income, expenses, capital expenditures, operational
costs, and provides insights specifically tailored for real estate
investments.
o Customization: Focused on property-specific metrics, allowing users to
break down costs and performance of real estate portfolios, analyze
profitability, and make investment decisions.
o Target Audience: Property owners, Landlords and property managers
who need a focused tool on spend management, investment tracking and
valuation monitoring related to properties.

2. QuickBooks:

o Focus: A general-purpose accounting and financial management tool,
QuickBooks covers a broad range of industries and provides features like
bookkeeping, invoicing, payroll, tax filing, and expense tracking.
o Features: It offers extensive features, including expense management,
cash flow tracking, profit and loss reports, and integrations with various
financial institutions.
o Customization: While QuickBooks is highly customizable for various
business needs, it lacks insights, analytics and other features aimed
specifically at real estate investment management.
o Target Audience: Businesses across many industries, freelancers, and
entrepreneurs looking for a versatile accounting solution.

In summary, TrackTCO focuses on real estate-specific cost tracking and investment management, while QuickBooks is a broader accounting tool that serves a variety of business types but may lack specialized real estate functions.