Your accounting software should help optimize your real estate business, whether you are a commercial landlord, property manager, or real estate agent. Select a system which meets the unique needs and goals of your real estate investment business such as automated invoicing/payment processing for properties with multiple tenants/clients as well as comprehensive rental income/expense tracking. Furthermore, choose an integrated bank solution which can grow with your portfolio as it adds new automation features over time.
General accounting platforms, like QuickBooks, Zoho and FreshBooks can be tailored specifically to the needs of real estate companies by making adjustments to the chart of accounts and creating expense categories and report templates specific to real estate investment companies. Unfortunately this approach can be cumbersome and requires you to manually track data in another system, potentially leading to errors.
Automated software streamlines tasks that require extensive manual input, like data entry and invoice generation. It frees up time for you to focus on other aspects of your real estate business by flagging irregularities like missing payments or duplicated entries as well as alerting you when specific financial parameters have been breached. Regular account reconciliation ensures every transaction aligns across your books quickly allowing you to identify and resolve issues early before they escalate further.
Real estate companies must itemize every transaction carefully to ensure no details slip through the cracks. From maintenance repairs and tenant deposits, to tax deductions and deductions, breaking down transactions in this way helps prevent misreporting and aid smart financial decisions. Ideally, look for a system which makes itemizing transactions simple as well as import transactions from bank or credit card accounts.
Navigating complex tax laws, regulations and deductions is an ongoing challenge for real estate businesses. Finding an accounting system to provide guidance, recommend best practices and keep up-to-date on changing regulations can save time and money while helping ensure accurate tax filing.