Maintaining excellent financial records is not always easy, especially for property management companies. Most companies do this by hand, making it hard to report on time.
You don’t have to strain anymore; property management software can be of great help. It has features that can keep track of accounts and finances related to your rental properties. With this software, you won’t have to manually record information about your accounts in a spreadsheet or some other program.
Property management software usually also provides features that can help you manage your rental property’s finances along with its occupants. In addition to tracking accounts and payments, it comes with features that can store information about your tenants and contracts.
This article will explore how property management software can help you maintain property financial records.
What Is Property Management Software?
Property management software is a software application that helps property managers, landlords, and tenants to organize their businesses. You can use it for single properties or multiple properties. It helps keep track of tenants, rent collection, maintenance requests, repair orders, and much more.
Property management software is also known as a property management system or P.M.S. It comes with a feature that allows tenants to pay their rent online, request repairs, view payment history, and other important documents related to their living property.
The software also offers many features to the property managers themselves, such as:
- Bookkeeping: Manage your finances and keep track of your income and expenses through this feature.
- Accounting: Keep track of all of your incoming payments, such as invoices, rent payments, and anything else you need to get paid for.
- Maintenance Management: Manage your maintenance requests from tenants efficiently using this feature. It allows you to create work orders and assign them to specific team members so you can get things done faster without any delays.
- Tenant Management: Keep all information about your tenants organized using this feature. You can add new ones and edit existing ones with ease without hassle.
Using a Property Management Solution for Financial Records
As mentioned, maintaining financial records can be a complicated task. That is why accounting software for property and lease management is often used. With this, you can keep track of your income, expenses, and tax payments. A property management system can help you maintain financial records in a variety of ways:
Integrated Accounting Software
A good property management solution will integrate with your accounting system or enterprise-level accounting software like QuickBooks. That way, all of your transactions are recorded automatically and you don’t have to spend time trying to reconcile accounts manually. You can also use the system to generate reports that help you optimize your cash flow.
Create Work Orders
You can assign work orders to contractors directly from your property management system, which allows you to keep track of costs. Each time a contractor finishes a job, the system will update with the cost of labor and materials so that you don’t lose track of your expenses over time.
Automation
An integrated property management solution allows you to create recurring invoices and automatically send them to tenants when it’s time to pay rent or utilities. You can set up automatic payments for your mortgage, taxes, and so on. This ensures that you never miss a payment and that your credit score is never dinged. If something goes wrong, the software will alert you to the error.
Rent Collection
A facility management solution can collect rent for you. This means that you can have your tenants set up to pay their rent online each month. They will create an account on your site and then access their dashboard. This is where they will be able to make their monthly payments or one-time payments if they choose to do so. It will be deposited directly into your bank account when the payment is made.
You can also set up automatic late fees if a tenant’s payment is late. You can also set up specific costs like pet fees or application fees. You will create these within the system and set it up to automatically charge them when needed.
Picture-Keeping
Your company will keep digital copies of receipts and other necessary documents for maintaining financial records. This information will be stored in a single location, so everyone on your team can access it easily.
Reporting
A property management system can generate reports that show income and expenses for each unit in your building. These reports make it easy for your accountant to file taxes. They can also help you make better business decisions for your company’s future.
Automatic Budgeting
Your budget can be based on an average of past utility bills, mortgage payments, and other expenses. Therefore, you don’t have to remember how much money is coming out when. Then the system will monitor actual costs relative to those projections and alert you if the line is crossed. For example, utilities exceed a certain threshold due to extreme weather conditions or other issues.
Manage Invoices and Expenses
One of the essential features of a property management system is keeping track of invoices and expenses. This is an excellent tool for small business owners and landlords. The software allows you to send invoices immediately after receiving them. You can view the status of each invoice on your dashboard.
Another feature that makes it easy to keep track of expenses is attaching bills and receipts electronically. This means you don’t have to deal with paper documents taking up space in your office or home. It also means you can track all expenses associated with your business or rental properties in one place.
View Real-Time Accounting Reports
The main goal of an accounting system is to supply business owners with the data they need to make informed decisions about their finances. A good property management system will allow you to generate reports at any time, making you stay up-to-date.
Adopt Software for Property Management
Whether you’re running a small operation or managing a business with hundreds of rental units, adopting a custom software solution is a great way to track expenses and manage your business. These solutions can consolidate your financial information in one place, saving time so that you can focus more on the inner workings of your property management firm.
There are plenty of property management software solutions in the market. It’s essential to consider your options when looking for new facility management software to use.
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