17th January 2024

A Packaged Solution for Property Management Accounting

Woman understanding the need for property management accounting software

For managing agents, or anyone else involved in property management, the significance of keeping accurate financial records for your property management accounting cannot be overstated.

Whilst you may already have a system in place for your property management, most solutions don’t come with a built-in accounting system. Using a combined property management with accounting software not only enhances the efficiency and accuracy of your day-to-day work, but also aids in legal compliance.

What is Involved in ‘Property Management Accounting’

Property management accounting involves the meticulous tracking of all financial transactions related to your properties. This includes managing expenses such as repairs, statutory fees, and maintenance, as well as income primarily from tenant rents, and service charges. Tasks like generating invoices, reconciling balance sheets, and preparing financial statements are integral parts of this process. Despite its complexities, the right tools can make property management accounting a manageable task.

Why Correct Accounting is Important in Property Management

Accurate accounting is quite literally critical for large scale property management. It ensures compliance, aids in making informed decisions, and is necessary for tax purposes.

Dedicated property management software will hold separate cash balances for all your clients and service charge buildings, keeping you RICS compliant without compromise or work around.

Incorrect accounting can lead to financial discrepancies or even potential legal issues. The simple act of misinformed decision-making could harm your business’s profitability and reputation.

The Key Value of Integrated Property Management and Accounting Software

A common approach for property management software is to rely on a third-party accounting software. Whilst this is functional, it has drawbacks for the end-user. Using a combined property management and accounting software produces so many benefits, often resulting in improving time-management. From this, you can spend more time on other operational areas that simply enhance the quality of work or number of options available to you.

Here are some of the key benefits of a combined solution:

1. You’re Not Reliant on Third-Party Software

By using an integrated software solution, you avoid the issues from data inconsistencies and additional costs associated with using multiple pieces of software. A unified approach ensures a seamless flow of information across your operations.

2. Everything in One Place

Having a single platform for both property management and accounting streamlines processes, improves data accuracy, and saves time. It allows for better oversight and easier access to financial data whenever you need it.

3. Customised Reporting Options

A combined property management and accounting software solution often offers the flexibility to generate reports tailored to your specific needs. This can:

  • Provide valuable insights into your portfolio’s performance
  • Aid strategic decision-making
  • Further increase time-efficiency across multiple areas of the business
  • Allow custom reporting for different stakeholders

Additional Benefits of Property Management and Accounting Software

Aside from these key values, there are many subtle benefits to a combined property management and accounting software. Here are a couple of extra examples:

1. Automate Your Accounting

Automation reduces the risk of human error and frees up valuable time that can be better spent on managing other critical aspects of your business.

2. Keep Track of Expenses and Documentation

Effective management of tax-deductible expenses and organised documentation is simplified with integrated software, ensuring you have all necessary information at your fingertips when needed.

Streamline Your Property Management Accounting

Adopting a combined property management and accounting software solution is a great step towards optimisation for property managers. It offers a streamlined, efficient approach to managing the financial aspects of your property portfolio. This then leads to wide scale advancements across the different operational areas of your day-to-day work.

If you’d like to know more about Trace property management software, please call us on +44 (0)20 7825 1299, email us, or use the contact form below.

We can provide demonstrations online or in person, at your convenience.

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