Bookkeeper | QBO Pro Advisor | XERO Advisor | Specializing in Short and Long-Term Property Management
💡Income and Expense Tracking is the cornerstone of effective property management bookkeeping. It ensures that all financial activities are accurately recorded, offering a clear picture of the property's performance. Here’s a comprehensive look at its process: 📌How to Track Income and Expenses Effectively 1. Use Property Management Software Tools like Buildium, AppFolio, or QuickBooks help automate rent collection, generate expense reports, and maintain accurate records. Many of these platforms integrate with bank accounts for automatic transaction updates. 2. Separate Accounts for Each Property Maintain separate bank accounts or bookkeeping records for each property. This prevents mixing funds and simplifies financial reporting. 3. Regular Reconciliations Monthly reconciliation of bank accounts and property management software ensures that records match actual transactions, catching errors early. 4. Document Everything Retain receipts, invoices, contracts, and bank statements to support all entries. These documents are crucial for audits and tax filings. 5. Categorize Transactions Correctly Use consistent categories for income and expenses (e.g., "repairs," "advertising," "utilities"). This makes analysis and reporting easier. 6. Track By Unit/Property For multi-property management, record income and expenses per unit or property to assess individual performance and identify underperforming assets. 📌Practical Example Income Tracking: A property manager collects $1,200 monthly rent from 10 units and records this as $12,000 in rental income. Late payment fees collected from 2 tenants are logged separately. Expense Tracking: Monthly expenses include $4,000 for a mortgage, $1,200 for maintenance, $800 for utilities, and $1,500 for property taxes. These are categorized and reported to show profitability. For Bookkeeping Services; BOOK a CALL NOW : 📞https://lnkd.in/gEKQ8ZQu 💌bookkeeperbadeth24@gmail.com "Unlocking the business success, the bookkeeping way" #yourbookkeeper #propertymanagementbookkeeping #realestatebookkeeping #bookkeepingjourney #quickbooksonline #XERO
