With many real estate companies a lot of the accounting functions that can be automated are not. Some processes are partly computerised, while others, not at all. It helps to understand what can be done online using property accounting software (like Yardi, MRI and RealPage), and how it benefits your company, to say nothing of saving time, money and effort.
Better Control of Receipts & Payments
Allows Real-time Decisions
As is the general advantage with anything done online, it allows easy access of relevant data by all parties and at any time, without the hassles that manual chores demand. Secondly it allows for a centralized accounting process. So you could be located across different geographic locations with diverse operations but because you are system based there is never a delay in data reaching you.
For example, let’s say you have properties in Boston, New York and New Jersey and your operations centre is DC. Instead of someone laboriously receiving or cutting cheques, shuttling back and forth between the bank to deposit them, and you receiving this information later, the cheques to headquarters can just be scanned, coded and sent. It gets credited the very next day. All you need to do is get it approved by the CFO or property manager. You gain by the following:
- You have a track record.
- It assists with bookkeeping
- You are aware of current bank balances.
This is immensely helpful, especially during certain times of the month when cash inputs are high, for instance, when receiving rent cheques. You don’t have to go running to the bank about 10 times to submit 10 cheques sent on different days before the 10th of the month.
Additionally, you get intimated by information from the system on overdue receipts or payments. If the rent to be received by the 5th of each month, in a manual procedure you will know about a delay only a week later. By this time you will have incurred a late fee notice or a pecuniary penalty.
On a system, since everything is done in real time:
- the processing time is not delayed
- your system balance and bank balance reconcile
- you are aware of your bank balance
- you can make better decisions without overdrawing your account
As can be inferred by the points mentioned above, you can only gain by using property accounting software to centralize your accounting processes and everything that comes with it.