Property management owners sell or rent properties; tenants buy properties. And in this process, there is constant juggling to balance tenant needs, property maintenance, marketing vacant spaces, financial tasks, and regulatory compliance
Nearly 50% of all landlords manage their own properties.
With the growing properties, you need to adapt multitasking to ensure seamless operations and tenant satisfaction. However, it’s easier said than done.
What if I say that you can manage financial operations efficiently without the need for multitasking or overlooking day-to-day operations? Ready for the big reveal? Let’s spill the beans!
Outsourcing property management bookkeeping services can help optimize your operations while enhancing efficiency and maximizing profits. This approach leverages external expertise and standardized accounting procedures, providing significant benefits outlined below.
Navigating the Daily Property Management Accounting Hustle Through Outsourcing
External property accountants are the backbone of your business as they handle the constant flux of transactions, rent collections, maintenance expenses, and regulatory compliance. This liberates you to focus on what matters most — maintaining and growing your business.
Here are the six compelling reasons why outsourced accounting is a great choice for property managers.
Consistent Access to Expertise
Outsourcing professionals specialize in the intricacies of property management accounting and bookkeeping. They are well-versed in the complex financial regulations and tax laws that concern your business, ensuring unwavering compliance and minimizing the risk of penalties and marginal errors.
Cost-Efficiency: The Bottom-line Advantage
On average a company spends anywhere between 40-80 percent of their gross revenue on staff compensation. And property management companies are no different to this.
By outsourcing accounting functions, you can lower operational costs by eliminating the need to hire and train new staff and invest in accounting software, equipment, office space, and utilities. Outsourcing also eliminates expenses associated with employee benefits, like health insurance, retirement plans, and paid time off.
Time is Money: Enhanced Productivity
You handle numerous tasks, from tenant communication to property maintenance, leaving you with limited time to devote to intricate accounting processes. Delegating consistently increasing accounting workload to outsourcing experts streamline daily, weekly, or monthly tasks, allowing you to reclaim time and redirect focus towards core business functions.
Scalability: Adapting to Growth
The real estate industry is popular for fluctuations, unexpected challenges, and financial risk associated with internal team incapabilities. So, you may not be ready to take advantage of scaling their operations due to staff shortage.
Moreover, the complexities associated with property management accounting get more pronounced with each new building. Tracking diverse revenue streams, complex expense structures, lease variability, and valuation of multiple portfolios become more critical.
Outsourced accounting facilitates the scalability needed to adapt to these fluctuations and challenges without the stress associated with hiring and training an in-house accounting team.
Increased Ability to Focus on Core Business
An outsourced accounting partner handles your financial data with the utmost confidentiality and integrity, freeing up your most valuable resource: time. Instead of drowning in financial tasks, you can focus on managing properties, owner disbursements, acquiring new properties, tenant movements specific to each property, and enhance property performance.
Improved Accuracy and Financial Reporting
Every property manager, including you, has unique reporting needs. Outsourced accounting services provide you with access to accurate, real-time reporting in accordance with the applicable standards.
Your outsourcing partner leveraging advanced technology and certified professionals to ensure all financial data is accurately recorded, analyzed, and reported. This enhances the timeliness of reporting, leading to better understanding of business performance, identification of improvement areas, and improved decision-making capabilities.
“The ability to customize reports based on our property-specific needs gives us the insights we need to make strategic decisions and stay ahead of the competition.” – James Anderson, Property Manager
Outsourced accounting has emerged as a transformative solution for commercial real estate property owners and managers seeking to streamline their operations, enhance efficiency, and drive success.
As you work tirelessly to ensure the well-being of your properties and tenants, your outsourced property accounting partner handles reporting, reconciliations, cash flow projections, accounts payables & receivables, and more for unparalleled growth and success.
Plus, you’ll have more time and resources to redirect focus to what truly matters – managing properties, evicting your problematic tenants, and getting your tenants to pay their rent on time. So, why hit a pause to growing opportunities when you can scale and thrive with outsourced property accounting?