The end of the year is a busy time for organized property owners who want to start the upcoming year on the right financial footing. These commercial real estate owners scrutinize their records, balance their books, pay off pending invoices, perform a CAM audit, and get their 1099s in order.
A property owner who uses a separate commercial real estate accounting system from their property management tasks or relies on paper files will have a hectic time filing reports. A paperless accounting system integrated into property management software is the most efficient method for a property owner. This all-in-one property management software helps you to streamline your end of year reporting because the software can:
- Keep track of all lease terms
- Manage vendors and track expenses
- Communicate with tenants
- Collect rent using ACH or credit cards
- Invoice your tenants on time
As you think of the big picture for the coming year, here are five tips you can implement to ensure you sail into the new year with minimal reporting challenges.
#1: Use Modern Reporting Tools
The old method of compiling reports by hand requires hiring an expert. Manually analyzing data is also time-consuming and uses extra resources. Modern reporting tools automatically analyze data for you and give a more accurate financial picture. A commercial real estate accounting tool can spot errors and inconsistencies in your data. These advanced features help you perform an error-free CAM audit and avoid penalty fees.
UnitConnect’s property management software generates crucial reports that you require from your employees and tenants. These documents include:
- Rent payment and arrears statement
- Real estate taxes
- Common area charges
- Income statements
- Balance sheets
These reports are also available to your employees and tenants on the software’s online portal, making communication and follow-up easy.
#2: Utilize a Paperless Accounting System
Are your office cabinets filled with months or years of invoices, receipts, and print-out emails? If so, your productivity is negatively affected because of the time and resources spent printing, searching for lost documents, and filing. A paperless commercial real estate accounting system is valuable because it:
- Reduces errors: Digital spreadsheets have few errors when performing a CAM audit task.
- Boosts efficiency: Having all your tasks in one software reduces the time spent referring to other documents in a different location.
- Increases accessibility: You can easily view your accounts from anywhere
- Better security: Cloud storage is safer than storing your documents in an office file.
- Good communication: Your tenants and employees have access to all their accounting details, reducing relationship strain.
An all-in-one property management software allows you to reap the above benefits of a paperless accounting system because of its in-built accounting features and other property management features.
#3: Simplify Account Payables
Managing account payables at the end of the year is an accounting task most property owners dislike and employees dread. The task is more tedious if the process has to be done manually. All your account payable processes can be simplified with advanced property management software because it can:
- Schedule payments
- Have all your vendor records in one platform
- Automatically update figures
- Track vendor transactions
Using an integrated system for account payables protects your investment revenue because it helps prevent; paying a fraudulent invoice, processing an inaccurate invoice, and paying a vendor twice.
#4: File Your 1099s Electronically
A common question new property owners ask in 2021 is, “when are 1099s due for 2021?”
A property owner needs to issue form 1099 to vendors by January 31, 2022, and send it to the IRS by February 28 if you’re mailing it and March 31 if you’re submitting it electronically.
Mailing 1099 forms to your vendors take more time and resources. You can use advanced methods like sending them electronically via property management software that contains all your vendors’ information. This method quickens and eases the filing process.
#5: Evaluate Your Property Investment Goals
A property owner’s primary goal is to optimize their investments to ensure it brings a consistent cash flow. The end of the year is the perfect time to assess your investment portfolio’s performance. Gathering all the information about your property can be an arduous task if you have multiple units.
UnitConnect’s advanced property management software allows you to manage all your property units in one platform. You can have a different platform for each of your properties, and you can switch between them to monitor their progress. The software allows you to view your entire investment on one screen, simplifying the evaluation process and restrategizing for the coming year.
Start your free trial today and experience how you can improve your investment performance for the coming year.