Good real estate accounting will provide valuable insights into the performance of your portfolio and save you both time and money.
A good real estate accounting tool will enable you to accurately record all your business expenses, provide valuable insights into the performance of your portfolio, and save you both time and money.
Monitoring your cash flow can help determine if your business has enough cash to cover your current and upcoming expenses. It can also help with planning your budget, by helping to predict future income and informing decisions about future spending and investments.
Keeping on top of these tasks also helps your accountant or bookkeeper. They can give you better, more tailored advice with more information about your business.
Real estate accounting software, als known as rental property bookkeeping software, is designed to help you optimize your accounting processes allowing you to accurately keep track of all your rental businesses’ income and expenses while minimizing the effort required to do so.
You can think of landlord bookkeeping software (such and Landlord Studio) as a kind of electronic ledger. Many solutions will also have tools for improving your tax filings, taking payments, invoicing, and receipts.
Additionally, solutions specifically designed for landlords also often have property management-specific features such as rent reminder emails, tenant screening, and have features tailored specifically to tackle unique problems for landlords.
Bookkeeping software comes in two forms. The first is the more traditional bookkeeping solution. This is the type you would install on a single device – spreadsheets also fall into this category. Your data is stored on a local drive and is accessible and editable from that device only.
The second form is online bookkeeping software. This stores your data on cloud servers allowing you to access and edit your data at any time from any device anywhere in the world.
As with most software services, online software comes with built-in advantages:
When looking for a real estate accounting solution you need to make sure that the solution you choose has all the functionality you need to not only save time and money but also will scale with you as your portfolio grows.
The first thing to look at is the pricing. Is it affordable for you and does the pricing offer flexibility to allow you to easily scale your portfolio up or down?
Secondly, you don’t want to have to change in 10 years’ time. Will the solution grow with you? You might not have the most complex demands right now – you might just need basic accounting tools – however, in 10 years you might need additional features such as maintenance management and payment management. Having a solution that either offers this as an add-on, or you believe will scale their functionality as you grow is important.
Thirdly, how easy is it to use? Learning any new software comes with a challenging learning curve. Having a solution though that not only makes your bookkeeping easier in the long run but also isn’t too hard to get to grips with will prevent you from making potentially costly bookkeeping errors in the short term.
Finally, you need to look for a solution that is secure and that you can trust. This is especially important for any software, however, especially important when that software is handling your financial data. Additionally, you should be able to get fast and quality customer support.