Good property management accounting practices play an important role in the success of your business. Keeping tabs on the financial status of your business helps you make better business decisions and improves cash flow. Your business focuses on managing property rentals, but you also need to take care of the accounting and see that your tenants make payments on time. Studies show that many business owners can collect more cash per year, but miss out because they do not pay sufficient attention to their financial statements.
Here are 5 essential tips for improving your property management accounting practices.
- Online Payments
Simplify payments by setting up an online portal for tenants. This is good for your business as it helps you stay on top of things. In addition to paying rent, tenants can place requests for maintenance. It also allows tenants to handle their finances better by helping them keep track of their payments.
- Automatic Tracking & Reminders
Setting up an online payments system enables automatic tracking and reminders for tenants and yourself. In addition to tracking interactions with tenants, this system can send automatic reminders when rent is late. Automating routine bill payments means less time spent visiting the bank during banking hours. All these features save you time, improve the efficiency of operations and ultimately have a positive impact on the bottom line of your business.
- Simplify Payment Processes
Your business doesn’t just receive income, it also has to pay expenses. A clear process for tracking and storing bills to ensure that they are paid on time is necessary. Have you considered the software options for tracking bills? You can store scanned or digital documents and set reminders for recurring bill payments.
You will also need to generate owner statements for the property owner’s perusal. An accounting software that can produce such a statement on-demand is handy at such times.
- Merge Tools
Perhaps you have embraced software solutions for property management, but are they integrated? If you have a separate accounting software and property management software in addition to your bank account, then it’s time to merge them. A property management accounting software that enables communication between your data management tools and financial management tools will give you an overview of banking information along with tenants’ payments and financial projections. This consolidated information can be extremely helpful for business decision-making to steer your business in the right direction.
Financial management should provide insight into the past, present and future of your businesses finances. Reports analyze financial information for exactly this purpose, but preparing them can be an time-consuming task. Property management accounting software can help you easily create custom reports that you need to understand the current financial status of your business, as well as its past and outlook for the future. Reports help you see the big picture and all the relevant details at a micro-level to make better decisions for your business.
These 5 essentials should help you significantly improve your property management accounting. But if you are still facing difficulties with accounting, feel free to contact us anytime. We would be happy to help.