Do you find that you keep putting off your rental property accounting tasks? You say you'll get to it, but never do. Now, you're stuck with a pile of unorganized accounting records.
Stop putting off reporting and organization because it's only hurting your business. If rental property accounting seems confusing, this guide aims to help.
Keep reading to learn the top tips for rental property accounting in Pleasanton, California.
Separate Bank Accounts
Rental property accounting can easily turn into a mess if you don't separate your personal and business accounts. Always have separate bank accounts for professional finances to make tracking and tax filing simpler.
With separate accounts, you can reduce your personal financial liability. Additionally, you need to place security deposits in their own bank accounts if you collect them.
Consider a different bank account for each rental property location you own.
Use Accounting Software
Accounting and bookkeeping are simplified with the right software. You can digitize all of your accounting records. With everything gathered in one place, it will be easier to look back on past accounting records you might need.
Top accounting software programs can automate reporting and analyzing as well.
If you hire a property management company, they will likely have rental property management software that can benefit you. Make sure your accounting software can integrate with other programs.
Establish a System
Learning how to manage a property comes with a lot of trial and error. You'll need to establish a system for tracking income and expenses, but this could take some time to perfect.
Without a system in place, you risk procrastinating accounting tasks and reporting. If you do this, you may fail to file business taxes. This could result in penalties that might leave you bankrupt.
To track expenses and income in real-time, keep all supporting documents. This will help you back up expenses and deductions you may make at the end of the tax year.
Outsource Your Accounting
You might be great at investing in rental properties, but accounting is not something you're interested in. When you outsource to a property management company, they can handle all accounting-related tasks.
Advantage Property Management Services in Pleasanton, California, offers 24/7 financial reporting tools to clients. You'll be able to see your investments grow without having to handle the day-to-day responsibilities.
A property manager can provide you with monthly reporting so that you can stay in tune with the financial health of your rentals. They can provide owner statements that show how much income you're making as well.
Let Us Handle the Rental Property Accounting
If you are a Pleasanton, California landlord, you don't have to manage your properties on your own.
A rental property management company can help with property marketing, resident retention, maintenance, and, of course, rental property accounting.
At Advantage Property Management Services, we pride ourselves on managing all types of residential properties. We are full-service so you don't have to do anything but reap the benefits.
Connect with us today to take advantage of more than a decade of rental industry experience.
