Property management accounting is an essential part of the property management machine. It helps keep track of finances moving in and out of the business, the sales and rental processes, and enables you to remain compliant.
Effective and efficient property management accounting is vital if you’re a business looking to grow and develop within your market. Thankfully, property management software helps make this process smoother so you can reach your business goals.
The relationship between property management software and property management accounting
Put simply, the right property management software will make your accounting process more efficient, effective and streamlined. With the right features in place, you can save hours of human input and eliminate any risk of errors — two common pain points for property management accounting.
Property management software harnesses the power of automation to unlock these efficiencies. Automation can complete many tasks without human intervention, freeing up employees' time to spend on more valuable tasks.
Different property management software has varying accounting features. However, they all aim to streamline operations and enhance accuracy, making it easier for your business to scale in the future.
Producing accurate financial records
While automating property management accounting brings time-saving benefits, it also increases the accuracy of financial records. Automation is far less prone to error than humans, meaning you can be sure your financial records are accurate and reliable.
Accuracy is critical when considering property management accounting, ensuring your business complies with stringent financial recommendations. It’s important to assess whether your property management software complies with industry standards.
For example, the PropCo software provides accurate and automatic monetary receipts compliant with RICS, ARLA and NFoPP standards.
Streamlining rent collection and invoicing
Rent collection and invoicing can be a time-consuming and labour-intensive property management task, but it’s also an essential part of the process. The right property management software can alleviate this by automating many of the steps involved.
Property management software can schedule and distribute bulk communications, including rent reminders and updates. The rent payment process can also be automated, making your financial accounts streamlined and up to date.
For example, PropCo has features, including rent-chasing tools and text messaging alerts, to ensure all essential communication is handled without human input.
Managing vendor payments
Proper vendor management is essential during the property sale process to ensure positive customer service, a smooth sale experience and accurate financial information.
There are many moving parts during sales progression, such as offers, the chain and legal contracts. Property management software can integrate and track vendor payments, ensuring compliance, transparency and speed.
Perhaps the most significant benefit of property management software for property management accounting is its advanced financial reporting capabilities.
Many software options feature progressive reporting tools that automatically collate and display accurate financial information, rather than employees spending hours in spreadsheets.
These reports are accurate, up-to-the-minute, involve all of your data and are often customisable so you can see what you need to see when you need to see it.
For example, PropCo uses financial reporting to generate key reports for employees and management. They’re customisable and consider all aspects of the business so you can act quickly and efficiently.
Budgeting and forecasting
Like any business, accurate and informed budgeting and forecasting are essential for business growth. It’s a key accounting task that helps monitor, track and identify opportunities for the business’s future financial performance.
Property management software uses all of your data and financial reporting to allow you to make informed business decisions. Whether you’re lacking in lettings or are looking to reinvest success, property management software provides you with the information you need.
Take the next step towards business growth
Are you ready to capitalise on the benefits of property management software for accounting? The next step is finding the right property management software for your business.
Luckily, we’re here to make that decision easier with our helpful guide. We’ll take you through the considerations you need to discuss, the features to look out for and ultimately, help you make the right decision. Download your free copy today.