Best Bookkeeping for Rental Property: Track Receipts, Create Reports, and Prepare for Tax Season

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Proper accounting measures a company's performance. It can also provide data to make long-term business decisions.

 

If you’re a landlord, you probably know what a pain it can be to manage your rental property. Not only do you have to deal with everyday upkeep and maintenance, but you also have to handle the finances of running the property. While most landlords either hire someone to do this for them or attempt to do it on their own, both of these options are far from ideal when considering the time and money spent. The best bookkeeping for rental properties will help you manage the financial side of your property quickly and efficiently so you can spend more time improving your property instead of dealing with paperwork and real estate bookkeeping spreadsheet.

 

The Importance of Good Bookkeeping

Proper accounting measures a company's performance. It can also provide data to make long-term business decisions. Simply put, paying attention to documentation when running a company is crucial since that'll allow you to save money on things that don't work out.

 

Here are seven reasons why real estate bookkeeping is important for your business.

  • Helps You Budget Accurately.
  • Keeps You Prepared for Tax.
  • Maintains Organised Records.
  • Easier to See Business Targets.
  • Meeting Government Regulations.
  • Gives You Extra Peace of Mind.
  • You Learn in the Process.

 

How to Choose the Best Accounting Software

Accounting software is essential for running a healthy business. Learn what features to look for and what you can expect to pay.

 

  1. Accounting software helps you track your accounts payable and expenses in one place.
  2. Accounting software packages vary in size, capabilities, and integrations.
  3. When selecting accounting software, you should evaluate all offerings, including compliance, reporting, tracking, and available add-ons.

 

Three primary factors to remember when selecting accounting software for your business.

  1. Cost: Would you prefer inexpensive essential accounting software or an application that costs more but includes extra features?
  2. Usability: How many users must access the software? Do you prefer a cloud-based system you can access anywhere or desktop software? Do you need your accounting software to have a mobile app? What capabilities do you need the app to have?
  3. Features: What do you need the accounting software to do? Do you need both accounts receivable and accounts payable tools? Which accounting reports do you need to generate? Do you need it to track inventory? Do you need it to include ancillary services, such as time tracking, project management, and payroll?

 

The Top 5 Accounting Software for Rental Properties

 

The Best Real Estate Accounting Software of 2022

 

  1. Buildium: Best overall for property managers.
  2. Bench: Best for hands-off bookkeeping.
  3. Zoho Books: Best for real estate useful integrations.
  4. FreshBooks: Best for Airbnb hosts.
  5. Xero: Best for real estate agents.

 

Conclusion

Keeping track of your rental property finances is a time-consuming task that often gets neglected by busy landlords. For example, landlords are often focused on the leasing process, regular or emergency maintenance tasks, rent collection, or even growing their portfolios. Therefore, we might manually input our income and expenses into Excel at best. Or keep a pile of receipts on our desks if we’re not as diligent. Some of us have considered using QuickBooks for our rental properties, but the learning curve is steep, and inevitably, another more pressing task comes up. As a result, many of us, unfortunately, focus on our reporting and accounting tools and software only at tax time. Therefore finding the best bookkeeping for the rental property becomes necessary

 

We have previously discussed using property management software to collect rent payments online. Many of the same property management software can also help for both generating useful reports to keep landlords up to date with their rental histories and situations, as well as for their bookkeeping, accounting tools, and tax preparation needs.

 

If you want to know more then check out the following blog -

 

https://thebookify.com/bookkeeping-for-real-estate/ 

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