Modern rental accounting is digital. Whether you’re a new landlord or have been managing properties for a while, you no longer need your Excel spreadsheet or paper files.
There are many reasons why digital accounting has become indispensable to the real estate industry in the last decade. First, digital accounting is a time-saver. It also simplifies bookkeeping because many accounting features are automated, including payment records, receipts, and ledger expense tracking. A pay check stub maker is fast and easy. All the calculations are accurate and will be calculated automatically based on the information that you provide.
Digital accounting is also convenient and, in many cases, portable. Many accounting applications offer a mobile app, so you can always keep your business’s finances in your back pocket.
There are also a variety of options—you may choose a general business accounting software like QuickBooks, or maybe you decide it’s better to select accounting software that is already integrated with your property management system. All your best options are cloud-based, as these give you the best combination of security and practicality.
Your accounting platform should also have some key features. For instance, it should include basic ledger accounting, payment tracking, bank reconciliation, and financial reporting.
Here are five accounting solutions for property managers and their benefits for your business.
QuickBooks is a classic and popular accounting application choice among landlords, even though it is not specifically designed for property management.
This application includes sophisticated financial reporting, payroll, an online payment portal, and other features. One downside to this choice, however, is that it does not offer non-accounting tools.
Its tools may also be limited for landlords since they are designed with a general business in mind. If you use QuickBooks, you’ll have to accept these limitations or think creatively to make the platform’s management infrastructure work for your rental business.
A basic QuickBooks plan is affordable at $25/month. More advanced plans run from $40 – $180.
AppFolio is a property management software platform that landlords often use because of its advanced accounting tools.
This platform offers Core and Plus plans, as well as paid onboarding. The Plus plan is specially equipped for rental accounting, including advanced KPI insights, bookkeeping, and revenue management, in addition to the customized reports and online payment portal offered in the Core plan.
As a full property management software platform, AppFolio includes other features you may find helpful for your business. These include tenant screening, maintenance management, communication, and others. AppFolio also offers feature-based pricing, so you only pay for the features you need.
Rentec Direct is an older platform, but it’s one of the best for multiple users. This is because the platform allows several user accounts with designated permission levels. If you have an accountant and want them to view and manipulate accounting tools, Rentec Direct might be a great option for you.
This platform offers general ledger accounting, financial reporting, and a payment portal through an integration with QuickBooks. It also includes work order management to keep track of vendor expenses and payments.
Rentec Direct is also highly affordable at $35/month. However, its pricing is unit-based, so the platform is more expensive for larger landlords.
Buildium is another popular option for digital rental accounting. It’s one of the most reliable property management software platforms on the market, but it can be pricey for small landlords.
Buildium offers payment tracking, financial reporting, bank reconciliation (automated monthly), and expense tracking. It also has a versatile mobile app so you can view your finances on the go.
As one of the more expensive options, Buildium’s essential plan starts at $50/month for up to 20 units. The platform’s Growth and Premium plans costs $160 and $460 a month, respectively. However, these fees include access to other property management features, such as tenant screening, maintenance, document signing, and more.
Digitize Rental Accounting
With digital rental accounting, you can organize your books, get more accurate insights, and receive your funds faster. As long as you have the key accounting features outlined above and are satisfied with the quality of the other features, any of these platforms are great options. No matter which route you take, you won’t regret trusting your books to rental accounting software.