We get it. One of your tenants just flooded the kitchen. You have a million other fires to fight. Surely that pile of admin can wait until next week? Don’t fall prey to the trap! Here are five big reasons bookkeeping is essential to any rental property operation, and why a purpose-built, automated bookkeeping system beats Excel any day.
1. To manage the fundamentals. Bookkeeping software will help you to pay your bills on time, accurately monitor revenue, and keep tabs on the bottom line. Bread and butter to any rental property owner, but hard to do without tailor-made tools to help.
2. To save money. Not keeping track of expenses? Mortgage interest, property taxes, professional service fees and utility, repair and depreciation costs all count as deductible schedule-e expenses, which enable you to report lower gross income and thereby pay less tax. Purpose-built rental property bookkeeping software will help you to organize them.
3. To take the pain out of tax season. Effective bookkeeping allows you to get an early start on your tax returns and avoid headaches during tax season. And guess what? Having your returns prepped, checked and ready to go also means you won’t have to pay an accountant vast sums to trawl through and organize the information.
4. To safeguard against fraud. Suffice it to say, your tax return needs to provide a complete and accurate record of all company transactions. Excel might seem like an easy short cut, but beware: studies show that over 90% of spreadsheets contain accounting errors ranging from minor to severe, which could prove very costly should the IRS ever come calling.
5. To free you up to focus on growing the profits. Running a rental property business is hard work, and there’s a serious opportunity cost to wasting time and energy with manual bookkeeping data entry. Getting an easy-to-use and automated bookkeeping system will help clear your headspace and free you up to focus on activities that enable you to grow, not just keep pace with your business.
If you manage rental property and you’re looking for a smart, simple and intuitive bookkeeping platform to lift the burden of financial admin, take a look at Leaseze.com. It’s free and guarantees to have you running your rental operation like a pro in no time.