Every rental manager should make a strong accounting tool a priority. If you don't have a system for bookkeeping, you are probably spending more time than you should on it.
No matter if you are using a property management tool or an application for your accounting, there a few things every landlord needs. Online rent collection and basic ledger accounting are essential. Other features can save you time, energy, and protect you from future tax headaches.
These are five digital accounting tools every property manager should have in order to manage a profitable rental business.
Rent Online
Rent collection online is essential for any rental business. Although you may be reluctant to give up traditional cash and check payments, consider whether your trust in the internet is misplaced.
Cash and checks can be difficult to lose, more secure and less convenient. You will need to meet with tenants individually or wait for payment to arrive by mail. Additionally, you will have to make monthly trips to the bank in order to deposit your funds.
These insecurity should not be ignored. Instead, make use of the online rent collection function on your property management software platform. Many platforms allow you to set up late fees and autopay for tenants.
Online rent collection is the best way to manage digital revenue.
Automated Payment Records
Without accurate and current records, you can't monitor your company's growth. Automatic payment records are essential for your rental business.
A good accounting software will automatically create payment records for every tenant who makes a payment. Digital payments are faster than manual logging of payments, as they can be instantly logged like cash or checks read more.
Digital ledgers can be viewed by tenants on their accounts. Both you and your tenants can view digital ledgers on their accounts to see the status of payments.
An accounting platform that integrates payment records seamlessly into your company's financials will be a good choice. It should be easy for you to track growth and identify inefficiencies. You can also quickly draw conclusions from your data.
Automatic Bank Reconciliation
Automated bank reconciliation should be a part of your rental accounting software.
When comparing bank accounts with financial records, accuracy is crucial. Small errors can lead to major headaches. Be aware of clerical errors before they consume your energy and time.
Auto-reconciliation does exactly that. Your software must be able to efficiently match data between bank statements and payments records. You can also use it to create balance sheets and other financial statements instantly.
1099 eFiling
Do you feel overwhelmed when tax season arrives? Do you find yourself scrambling when tax season rolls around?
Property managers should have 1099 eFiling as a feature during tax season. Software that can quickly generate 1099 forms for IRS eFiling is a huge benefit to you. This feature can be a huge benefit to you and your accounting software.
Landlords, property managers and other professionals are all familiar with the relief that comes from completing another tax year's filing. This feeling can be achieved sooner by using an accounting software that you trust to simplify the process.
Locking of Account Books
The ability to lock your books prior to you file is a final essential digital accounting feature. This feature ensures that your data is protected from corruption and provides the highest accuracy.
This is both preventative and good practice. This is a simple way to prevent any unintentional changes from your financial reports.
Maximizing Your Rental Accounting Tool
You can use a rental accounting feature in property management software, whether you are familiar with QuickBooks or not. Your accounting tool should be a valuable asset for your business. It should provide efficiency, protection, ease, and usability. You can easily find professional digital accounting and begin to benefit by paying attention to each of these features.