Property managers are required to perform some specific types of accounting processes, such as holding and tracking security deposits and common area maintenance costs.
Property management is all about managing properties and related operations. The property management accounting software automates the processes that enclose the surroundings of accounts and finances. It helps the users to its extent while reducing much time and efforts. Many IT companies are offering quality solutions for accounting to be accessed in property management. Our listing for best products in property management accounting would help to your gain an insight not only into the solutions but also for your buying decisions.
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How to choose the right Property Management Accounting Software?
As you evaluate new property accounting software, look for a solution that helps you do the following:
Even before you get into the details of your business accounting, you need rental property accounting software that helps you manage your documents. Choose a solution that allows you to digitally file invoices, associate invoices and accounts receivable with a specific account, and enable online payments to reduce the amount of paper flowing in and out of your property management business.
Organize Accounts Receivable and Payable
Whether you’re an accounting professional or the manager of a small property management company, you need to be able to coordinate your accounts receivable and accounts payable.
Look for a software product that uses an online portal to manage tenant payments online and automatically adds items like late fees to an account. Streamline the accounts payable process by digitally storing all of the relevant documents in a single location in your property accounting software, rather than digging through piles of paper to find an invoice.
Manage Cash Flow
As you’re growing your business, cash flow can be a concern. For example, if you are working on projects in several of your properties, you need to make sure that you can balance these large expenses with incoming funds. According to All Business, “many small business owners – especially those who are just starting out – find themselves dealing with upfront expenses and limited cash flow.” Look for property accounting software that allows you to integrate information from accounting software such as Quickbooks, setup and monitor a portfolio or property level budget to keep track of incoming and outgoing funds, and generate financial reports quickly, so you know where your cash flow will stand.
When you’re juggling payroll, requests from vendors, and tracking owner-related finances, you need to keep your payments moving through your accounts. Automate owner withdrawals using an online system that informs owners of changes in their accounts and allows them to check their balance and withdraw funds. Work with a program that automatically calculates extra fees and manages commissions for employees. With calculations and payments that happen automatically after you set them up, you’ll be able to smoothly manage employee payroll, vendor requests, and owner disbursements.
Balance the Books
No matter the size of your business, it’s beneficial to work with property management accounting software to balance your books. Download bank statements, monitor and correct problems, match transactions, and generate reconciliation reports that allow you to see what transactions have cleared and which ones have not. Look for property accounting software that helps you easily track fees and accounts and create statements that show the status of your finances.
- Track rents & payments - This software will categorize receipts based on the specific real estate category, such as rents, utilities, subleases or late fees. The software also calculates real estate taxes, property insurance, maintenance costs and payroll, and all of this information ties directly to the tenant or property record.
- Online payment portal - Some property accounting systems include an online portal for tenants to pay rent. This simplifies the payment process, as renters can pay online 24/7 using credit or debit cards. This feature is more common in full property management suites.
- Bank reconciliation - Many systems offer bank reconciliation assistance to ensure the figures match in both your’s and the bank’s accounts. Users can download bank statements to identify and correct discrepancies.
- Reporting - Accounting systems typically offer a variety of report and chart types to view income and expense data by month or year. These reports can be automatically generated at certain dates and shared with specific people.
- Business growth & development - Automatically calculate annual rent increases, property appreciation, and depreciation, as well as manage the growth of your assets. Many of these programs also have built-in budgeting and forecasting capabilities and the ability to analyze rents based on current market rates.
- Common area management - Most solutions calculate charges and costs associated with common areas, tracking maintenance, policies, and usage as desired.
- Get paid faster. With an online payment portal, you don’t have to wait for mailed checks to arrive. Tenants can pay rent online anytime, with cards or cash, which goes directly into your account.
- Calculate rent increases easier. Software can help analyze local housing market conditions to calculate how much you can charge for rent while staying competitive.
- Stay on top of your accounting from anywhere. Most of the top property management software vendors offer a native mobile app or the ability to access the system through a mobile web browser. Even when traveling, you can view incoming payments or reports.
- Devote more time to finding great tenants. After the software helps you handle complex accounting tasks, you can focus on screening out the bad tenants you don’t want to deal with.