Just like any business, it is vital to track the finances of your rental properties with a proper accounting system. Keeping excellent records of your financial situation with your properties will help you to get more funds if you want to buy more properties. After all, banks want to see your financial records of profits and reserve funds of your current properties.
Also, you need to keep great records of your property accounts if you have to ever have a real estate audit.
Is QuickBooks The Answer For Your Accounting Needs?
QuickBooks can be effective to manage your rental property transactions. You set up your properties as your customers, your renters as sub-customers, and set up classes to track types of transactions.
While QuickBooks is a top accounting solution for many small companies, it is limited for managing rental property financials. Property management software that has been designed for property managers has a specific type of accounting system that has the excellent reporting tools of QuickBooks, but it also has been built with ledgers and categories ideal for rental management.
With software that is designed especially for property managers, you will enjoy tools such as a tenant portal for all renters to log into and make rent payments and maintenance requests. There also is an owner portal for property owners to go over their property performance. Most property management software also has tenant screening so you can screen potential renters inside the same application.
What Are Some Common Property Management Software Accounting Features?
Some of the features you can expect are:
- Full ledger accounting for your tenants, properties, and owners. You can review, edit and print ledgers for each property, owner, tenant and bank account that is used in the management of your properties.
- Ability to take online rental payments by eCheck or credit card from renters.
- Property managers can usually pay owners through the property management system via ACH.
- Built-in 1099 e-filing system makes tax season a breeze.
- A complete set of financial reports tailored to property owners. They can be easily printed, emailed, or exported to Excel or PDF. Data is usually able to be synchronized with QuickBooks.
There is no question that a strong property management software solution can automate the accounting for your business, so be sure to review some of the top products you find online.