Property management accounting can get complicated when you manage many properties for lots of different customers. In other words, when you run a property management company. However, for DIY-ers, I’ve got good news…
When you purchase your own investment property and want to rent it out, you may decide to find out how to do property management accounting yourself. You can save yourself a significant amount of money, plus, the task becomes a lot less complicated.
1. Get Part-Time Help
One option is to hire a professional accountant to do part of the accounting, such as tax returns. This way, you can get valuable advice and learn all of the tax deductions you can take.
By outsourcing just a portion of the duties, you don’t have to pay a full-time accountant. Yet, you can take advantage of expert help when it comes to taxes. Just make sure to keep track of property repairs and office expenses, making journal entries throughout the year so you can make the most of your rental income.
2. Use Property Management Accounting Software
Alternatively, you can use property management software which helps you with the accounting, financial reporting and online payments. This DIY service costs about $50-70/month, plus, it also helps you with applications, screening, leasing, document management and more.
With real estate property management and accounting software, you can streamline your business, while saving time and staying organized. For example, a cloud-based online platform can help you manage bills, repairs, rental payments, fees and more.
Make journal entries in the general ledger and easily do your own property accounting and financial management (like a pro). You can find out more information on how online rental property management accounting software work in the video below.
On the other hand, you can download Quicken Rental Property Manager Software (Windows Only) for under $50. This software shows how much you are spending and making on renting out (and maintaining) each property. It also comes in handy at tax time.
Many small business owners also opt for Quickbooks accounting software, although it is not specific to managing real estate properties. Their new online Simple Start program is available for Mac and PC.
3. How to Do Property Management Accounting with Excel Templates
Visit Buildium’s property management resources page for information on where you can download free forms and excel templates. It includes the following basic examples for those who want to do their own accounting for property management:
- Income and Expense Report
- Rental Cash Flow Analysis Spreadsheet
- General Ledger
- Monthly Budget Spreadsheet
4. Learn Property Management Accounting Procedures with Books
Property Management Accounting: A Survival Guide for Non-Accountants is a popular guide that only costs $10 and has less than 100 pages. You don’t need to read a lengthy and complicated textbook to learn the basic rules, practices, policies and procedures.
Get basic training, tutorials and tips so you can keep accurate financial records. No need to over-complicate your investment income, right?