A powerful accounting tool should be a top priority of every rental manager. If your bookkeeping isn’t organized, you’re probably spending more time on accounting than you need to be.
Whether you use a property management software tool or a separate application for your accounting, there are a few features every landlord should have. Basic ledger accounting and online rent collection are musts. Other features save you time and energy or protect you from tax headaches in the future.
Here are five digital accounting features every property manager needs to run a successful rental business.
- Online Rent Collection
Online rent collection is a must-have for every rental business. You may be reluctant to move away from traditional cash and check payments but consider whether that trust is misplaced.
Cash and checks are easy to misplace, less secure, and inconvenient. Not only do you have to meet individually with tenants or wait for payments to arrive in the mail, but you also must take monthly trips to the bank to deposit your funds.
Instead of neglecting these insecurities, use the online rent collection feature on your property management software platform. Many platforms offer customizable late fee infrastructure and autopay for your tenants.
Online rent collection is simply the best way to manage your revenue digitally.
- Automatic Payment Records
You can’t track your company’s growth without accurate, up-to-date records. Therefore, automatic payment records are indispensable to your rental business.
An accounting application worth your money will automatically generate payment records each time a tenant makes a payment. Instead of logging payments manually as you would with cash or checks, digital payments allow instantaneous record-keeping.
Tenants can also view digital ledgers on their accounts. If a question or concern arises about the status of the payment, both you and your tenants know where to find it.
A good accounting platform will seamlessly integrate payment records into your company’s financials. Your platform should make it easy to track growth, identify inefficiencies, and quickly draw conclusions from your data.
- Automatic Bank Reconciliation
Your rental accounting solution should also include automatic bank reconciliation.
Accuracy is essential when comparing your bank accounts to your financial records. Even small errors could explode into major headaches down the line. Avoid clerical errors and eliminate discrepancies before they eat your time and energy.
Auto-reconciliation accomplishes just that. Your software should be capable of efficiently matching data between your bank statements and payment records. It also aids you in creating balance sheets and other financial statements in real time.
- 1099 eFiling
When tax season rolls around, do you find yourself scrambling? If so, it may be because your current accounting tool isn’t doing a good job of preparation.
1099 eFiling is a must-have feature for property managers during tax season. Software that quickly prepares 1099 forms for eFiling with the IRS can hugely benefit you. Avoid the hassle, stress, and inconveniences by choosing an accounting solution with this feature.
Landlords and property managers are familiar with the relief of completing filing for another tax year. Reach this feeling sooner by using an accounting tool you trust to streamline the process.
- Account Book Locking
A final must-have digital accounting feature is the ability to lock your books before you file. This feature protects your data from corruption and ensures the highest level of accuracy.
This feature is both a preventative measure and a good practice in general. It’s a simple step you can take to eliminate accidental changes to your financial reports.
Maximizing Your Rental Accounting Tool
Whether you’re accustomed to an application like QuickBooks,do accounting by hand, hire your own accountant, or use some other method, your business can benefit from a rental accounting feature on a property management software platform. From efficiency and protection to ease and usability, your accounting tool should be a reliable asset to your business. By keeping an eye out for each of these five features, you can find and start benefiting from professional digital accounting.