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October 2, 2023

Accounting and Record Keeping with Property Management Software

  • March 23, 2022
  • 4 min read
Accounting and Record Keeping with Property Management Software

After choosing a platform, you’ve finally set up your property management software account. 

You connected your bank account and are eager to start collecting payments with your new software tool.

Even if you know the basics of online rent collection, you may still be wondering how you’ll organize and evaluate payments once they start rolling in. How do you view payment records? What about expenses and investments? 

This information may not be on your mind while you’re initially setting up the software, but financial metrics are the way you measure growth.

Free Property management software tracks these metrics, including your profits, losses, and insights. Whether you’re accustomed to manual record keeping or generally leave the task to your accountant, property management software streamlines finance and accounting tasks.

Here are just a few ways property management software facilitates painless accounting and record keeping.

Automatic Payment Records

Most notably, property management software automatically generates payment records. It’s no longer necessary to maintain your own spreadsheets. Your software takes note of each time a tenant makes a payment and consolidates the information in a digital ledger, accessible to both you and the tenant.  

Property management software also takes care of rent receipts. If you previously allowed tenants to mail cash or check payments, you know how tedious it can be to create and send individual payment receipts.

With software, you no longer need to. As long as your tenants have accounts on your property management software and submit their rental payments online, the software will automatically send email receipts.

Expense Reporting

Property management software also helps you manage expenses. In addition to charging and collecting fees from tenants, you also need to audit your business expenses.

As a rental property owner, your day-to-day expenses may vary. You may need to log expenses for repairs, cleanings, human resources, tenant screening, resources, or any number of other reasons.

Property management software is a straightforward approach to expense recording and tracking. On most platforms, you can instantly enter expense data, categorize expenses, and attribute them to the appropriate accounts.

Financial Reporting

Similar to managing expenses, many property management software platforms also offer financial reporting features. Financial reporting is integral to identifying trends in your business and paths toward increasing revenue.

One report to remember is the profit/loss (P/L) report. P/L reports weigh revenue against expenses and help you determine where you should focus on increasing profit. The report tracks the overall health of your investments and business from month-to-month and year-to-year.

You can also view reports, including bank deposits, deposits held, rent roll, and more.

If you want to make the best decisions for your business, you need sound insights and quick access to data. A reliable software platform will provide you with just that: all the details and accurate financial reports you need to save as much time and money as possible.

Integration with Quickbooks

Finally, property management software makes it possible to integrate the financial organization you already use for your business. 

For instance, some software platforms, such as Innago, can integrate directly with your Quickbooks web account. Because Quickbooks is a popular financial solution for many small to mid-sized rental businesses, it makes sense for property management software to make information from Quickbooks readily accessible via the cloud-based platform.

During setup, you’ll link your property management software and Quickbooks accounts. Then, the software will automatically record rental payments, custom invoices, and expenses directly from your Quickbooks account.

Property management software is a practical solution to combining multiple software packages or transitioning from one to another. You don’t have to give up the methods that work for your business to reap the benefits of property management software.

Track Your Rental Business’s Growth and Success

One way to measure the value of modern software solutions is to evaluate their capacity for automation. Property management software undoubtedly passes this test, as most of its features can be partly or fully automated, including bookkeeping. With the most accurate and up-to-date metrics about your business, you are well equipped to garner insight and grow your business.

Also read Things To Keep In Mind Before