A good property management accounting software is the secret sauce of your property management business. In fact, with the days of ledger and spreadsheet accounting fading away, it’s virtually impossible to run a growing portfolio without it.
But not all property management accounting software programs are created equal! While not every software will fit your specific business needs, there are certain features that you should look for in any quality property accounting software. If the property management software you are considering does not include at least some of the following features, you should continue the evaluation process.
The below are five must-have features you definitely should have in your property management accounting software.
#1: General ledger accounting
Make sure you can track your property financials side-by side with your business expenses. You don’t want to have to juggle multiple financial and accounting programs just to switch between seeing money you have and money you’re about to get or pay out. It makes profit and loss statements a whole lot easier, too.
#2: Automatic bank reconciliation
Be sure that each check and deposit is recorded accurately and reduce the chances or clerical errors by getting a property management accounting software with automatic bank reconciliation. This will reduce your tasks lists, ensure your books are correct and also will let you produce balance sheets, cash-flow statements and income statements automatically. Major headaches can be solved with this feature—don’t overlook it!
#3: Online rent payments
Reduce your own frustrations in chasing down tenants month after month. Choose a property management accounting software solution that gives tenants a wide variety of online and automatic rent payment options, from EFT and bank transfers to credit card payments, to options such as Pay-Near-Me at local retailers.
#4: 1099 eFiling
Tax season and 1099 deadlines can be a huge hassle for property managers, so save yourself the pain and be sure to choose property management accounting software that will automatically and easily batch 1099 e-filing with the IRS, print and mail forms to owners and vendors, and record and track it all.
#5: Accounts payable
How amazing would it be if your contractors and vendors could bill you electronically, you could verify the ticket was complete and then you could use a built-in calculators to figure out what you owe your vendor or yourself and then pay it—all in one place? Yeah, you can do that. Not only that… you SHOULD be doing that. A great property management accounting software will convert work orders into bills, then pay them online—even letting you set up automatic payments for recurring items.
Buildium has all of these property management accounting software features and more, so be sure to check out the how-to videos in our Accounting section, our Property Management Accounting Survival Guide for Non-Accountants, as well as bookkeeping basics for property managers to learn more! Happy accounting!