Managing properties may sound straightforward, but there are so many things to keep track of. There’s marketing properties, handling work orders, maintenance and repairs, and keeping your landlords in the loop – all before even thinking about the financial side of things.
Property managers and landlords can spend countless hours manually handling bookkeeping tasks, like data entry, preparing invoices and statements, and then pulling this information together for tax season. It can be a huge time suck, but this is an area where employing financial software and automation can really make a difference, saving you huge amounts of time and increasing your productivity. Start by looking at your business, keep in mind your plans for the future and don’t leave out the Government’s plans for digitising tax.
Assess your business’ needs
One of the most important questions to ask when considering the system you need, is what value you are looking for in the solution. Most software will boast a shiny list of features, but it’s important to consider which ones will add value to your business.
There are tried-and-true general accounting tools like Quickbooks to specialised property management solutions, so it really depends on your needs. The first step is looking at your current financial administration processes, including the time and resources needed to perform day-to-day functions. Then add your plans for growth to the equation to ensure you’re looking at systems that can offer value in a few years’ time.
General accounting software vs. property management fintech
If you’re just starting out and you need something to handle the basic accounting tasks for managing your properties and your personal accounting, you might assume general accounting software is the right way to go. But, these systems can come with a plethora of features that aren’t relevant to you, leaving you paying a premium for something you never use. In other words, more features don’t necessarily make the software more useful to you.
If you’re more experienced or managing a growing portfolio of properties, chances are you’ll find general accounting software limiting in what it can do. Dedicated property management fintech is designed specifically to help you with property and financial management simultaneously, easily, and efficiently. Systems like Arthur offer all the accounting features necessary to manage your rental portfolios, such as payroll, expenses and invoicing. Plus, many other non-accounting features, such as a tenant portal, work order management, document management, and marketing.
Having all aspects of property management on one platform is invaluable to property managers with a growing portfolio. It saves time, gives you full visibility of your business, makes business reporting a lot easier, and reduces the risk of human error.
Don’t forget Make Tax Digital (MTD)
The Government is introducing its new Make Tax Digital initiative, requiring companies to keep digital records. So, if your business is still using manual records, spreadsheets or outdated software, it could be slightly more challenging as you’ll have to change existing processes to incorporate MTD into your business and find new software that’s MTD-compatible, in order to comply with government regulations.
Not sure whether your system complies with MTD? Read our blog: What making tax digital means for landlords
The bottom line is that technology, especially financial reporting proptech, is time-saving. can help cut costs and free people up to use their skills for more important jobs.
So, if you feel like your software solution isn’t doing enough for your business, consider your options, and find one that truly helps streamline your business processes, saving you time and money. The truth is, taking advantage of the right solutions will help future-proof your business and keep it competitive.
If you’re new to these tools, or not sure if your business needs them, find out more on how to make life easier with an integrated accounting software package.