Accounting impacts every aspect of the rental business and comes with its challenges. Often it gets difficult to handle property management accounting and reporting challenges because of discrete processes or lack of capabilities. It results in frequent errors, repetitive work, and inconsistent data.
That’s why in this blog post, we bring you ways to overcome top property management accounting challenges by adopting a single solution that comes with automation, integration, and reporting capabilities.
Challenge #1: On-time rent collection
The most common accounting problem faced by temporary housing property managers is collecting rent on time. Manual data entry and switching between systems slow down the accounting process to a great extent. If your business still relies on collecting paper checks, depositing them in the bank, and manually entering the details into the system, then you are risking your rental property NOI & owner cash flow.
Solution: Switch to online rent payment
It increases the chances of rent being paid on time and in full. In addition, it saves time, enhances accuracy, and eliminates the back and forth of accounting documents. Because of its ease, millennials and Gen Z guests prefer to make payments online. Unlike check payment, the payments made by guest directly goes into the account and you don’t have to wait for rent money to be transferred to the business account.
Challenge #2: Dealing with data accuracy and invoicing
A second most common challenge is data accuracy. If your corporate housing rental business is dependent on manual paper works, entering information from multiple spreadsheets, increases the chances of human error. In addition to it, the manual invoicing process is time-consuming and may often result in duplicate invoices.
Solution: Put your invoicing on automation
A simple solution to this massive problem is automation. Property management tools like Zenya automatically store all the encrypted information in one place and update it in real-time. Invoices with tax calculations are created on a defined date and time and sent to guests on the due date. You don’t have to remember the due date or follow up for payments as everything is automated.
Challenge #3: Determining financial health
For running rental business profitability, it is vital to know how your business is performing. But if your financial data is stored across disparate systems, it gets difficult to manage all your financial operations. Your team might spend hours mapping data amongst these systems to make informed decisions or create reports for the owners.
Solution: Rely on a single platform
When you switch to a single platform, it connects every aspect of your business — reservations, operations, and finance into one. It also integrates all the financial systems and allows data to be stored digitally in one place in real-time. It gets easier to calculate how much money you get from the owner and how much is paid to the vendor. Solutions like Zenya also come with property management reporting tools that can automatically generate reports, analyze your data for any discrepancies. With a few clicks, you can get reports like revenue reports per client or vacancy report instantly and share them with your owners without hassle.
Challenge #4: Reconciliation of Books
Lastly, one of the major challenges is reconciling accounts. You need to do a lot of double entry when you use generic systems like Quickbooks and excel sheets. The chances of errors, inconsistencies, and manual data entry increase. Besides, your staff has to spend hours to ensure accurate P&Ls for your rental property by manual excel double entry. This requires a lot of time & effort to fix the inaccuracies and create the reports manually.
Solution: One solution that supports integrations
A well-integrated property management software allows you to store all the information under one system. You don’t have to map your invoices to Quickbooks every time as it gets automatically reconciled with Quickbooks. You save time on creating accurate P&Ls. With financial data accuracy, you can create financial reports instantly.
When you standardize the property management accounting process with automated workflows, online payments systems, or reconciliation capabilities, you can easily streamline the entire process. You save a lot of time by automating repetitive work. Bringing accuracy to financial documents gets a lot easier. Zenya provides you with all these capabilities, accessible at a few clicks.