Data analysis and recording mistakes are ones you can not afford to make while running a real estate business. But nobody in 2023 has time to input and calculate data manually. Hence, Real Estate Accounting Software is the next best investment for your business.
It is a powerful digital tool that helps real estate businesses stay on top of their finances. Providing an all-in-one solution, it enables real estate companies to manage their financial transactions, budgets, and taxes easily. Statistics show that around 64.4% of real estate companies now have accounting software to manage their financials.
Designed specifically for the real estate industry, it is intuitive and user-friendly. Hence, the global property management software market size is predicted to grow from $1.64 Bn in 2021 to $2.70 Bn by 2030.
The software helps save time and provides a comprehensive overview of the business’s financial health and cash flow.
Speaking of saving time, Real Estate Accounting Software can automate the collection of rent and payment processing. Such use of technology reduces the risk of errors and frees up the accountant to focus on other vital tasks. Remote accessibility to reports and data is another benefit a money management software offers.
Given that Software for real estate agents allows you to enjoy these benefits, you must learn how to use this effectively. Continue reading to get insights into managing multiple properties with it effectively.
1) Selecting the Right Software for Your Needs
Begin by considering the size and complexity of your business. Different Real Estate Accounting Software options are designed to cater to companies of varying sizes and complexity levels.
Moreover, your budget plays a vital role in choosing the right software. Software for real estate management has packages that can vary widely in price. They start as low as $9 and run as high as $999 per monthly user. Hence, choose one that fits well with your financial plans.
You also notice a significant difference in the features of different software packages. Make a list of the essential attributes for your business, and look for software that provides those. Checking user reviews and getting a free trial are great ways to judge software before committing.
2) Setting Up the System and Inputting Data
Setting up Real Estate Accounting Software and inputting data can seem daunting. But with proper planning and organisation, the process can be straightforward. Here are some steps to follow:
- Create a chart of accounts: The accounts and categories you will use to track financial activities should be listed and customised in a chart of accounts
- Data entry: Enter details on your properties, tenants, and leases and keep track of your earnings and outlays.
- Reconcile accounts. Verify a match between your financial data and bank and credit card statements. Do this regularly.
3) Utilizing Features to Track Income and Expenses
With this accounting software for real estate, you can easily input and categorise your financial transactions, making it simple to track your income and expenses for each property. You can also generate reports to see how much money you make (or lose) each. Property managers can especially benefit from this.
One of the great features of real estate accounting software is the ability to set up automatic income and expense tracking. It means that whenever money comes in or goes out, it automatically logs into the software.
4) Generating Accurate Financial Reports promptly
Look no further than real estate accounting software to help you streamline your financial reporting process, allowing you to generate accurate reports on time.
One of the best features of real estate accounting software is the ability to automate and customise the reporting process. This feature allows you to set up the software to automatically generate reports based on your preferred time intervals, whether daily, weekly, monthly, or quarterly.
5) Choosing Additional Features or Integrations That Can Help Grow Your Business
There are a variety of additional features and integrations that can help you grow your business. One vital feature to consider is the ability to track maintenance requests and repairs. It will provide a management solution for improved customer support.
Its ability to generate lease agreements and other legal documents is also too beneficial to overlook. You can save time and ensure that all your leases are accurate and up-to-date through automation. Doing this helps avoid legal disputes and run the business smoothly.
6) Ensuring the Security of User Credentials and Data Stored in the System
When using real estate accounting software, one of the most important considerations is ensuring the security of your user credentials and data stored in the system.
Security breaches can expose sensitive information, such as personal or financial records. These occurrences can damage your business’s reputation and cause significant monetary harm.
Moreover, a report by the Ponemon Institute states that the average cost of a data breach for a company in the real estate industry is $6.7 million.
One way to ensure the security of your data is to look for software that uses industry-standard encryption techniques to protect sensitive data.
It includes data at rest and in transit. Additionally, software that has undergone third-party security audits or certifications is sure to meet industry security standards.
See related: Real Estate CRM Dubai
7) Develop an Ongoing Maintenance Plan for Keeping the System Updated and Secure
It is essential to stay up to date with software updates and patches. Be attentive to notifications or alerts from your software provider and schedule regular maintenance windows to install updates.
Another significant aspect of ongoing maintenance is regular backups of your data. Backing up can help you quickly restore your data and minimise downtime in a security breach or system failure.
Regular user access reviews can also help prevent unauthorised access to sensitive information. Make sure to periodically review user access levels and permissions and adjust them as necessary.
8) Training Employees on the System
To start, consider creating a training plan that outlines the specific features and functions of the software that employees will need to know how to use. The plan should include entering rent payments, tracking expenses, generating reports, and managing user access.
Providing hands-on practice and encouraging employees to ask questions during training is necessary. Consider using real-world scenarios to help employees understand how to use the software practically.
You can take your business to the next level and make more informed decisions in 2023 by leveraging the benefits of real estate accounting software. A few surface benefits include time-saving, improved accuracy, better security, and organisation.
It is the best time for all real estate professionals to learn more about software like Quickbooks online and xero. Take advantage of automation and accuracy now.
Real estate accounting software is a game-changer for businesses managing multiple properties, providing a comprehensive solution to streamline financial processes, improve accuracy, and save time.
By selecting the right software, setting up the system correctly, leveraging its features, and ensuring data security, you can significantly improve your property management efforts. As you train your employees and plan for future growth, real estate accounting software can serve as a reliable partner in the success of your business.
Are you ready to experience the benefits of real estate accounting software for yourself? Don’t miss out on the opportunity to streamline your property management processes.
Request a demo today from EPMS, a leading provider of comprehensive and user-friendly property management solutions. To get started on your journey towards improved efficiency and growth in your real estate business.
Frequently Asked Questions
Is real estate accounting software too expensive for a small business?
There is a wide range of pricing options available, with some software packages starting as low as $9 per month. Carefully assess your budget and choose a software that meets your needs without breaking the bank.
Will it be difficult for my team to learn how to use the software?
Most real estate accounting software is user-friendly, and providers typically offer tutorials, training materials, and customer support to help users become familiar with the platform and address any issues that may arise.
Can I trust the security of real estate accounting software with sensitive financial data?
Look for software that uses industry-standard encryption techniques, undergoes third-party security audits, and adheres to industry security standards to ensure the protection of your sensitive data.
Is real estate accounting software only suitable for large property portfolios?
No, real estate accounting software is scalable and can cater to businesses of all sizes, from small startups to large corporations. It can grow with your business and adapt to your changing needs.
Will integrating real estate accounting software disrupt my existing financial processes?
Real estate accounting software is designed to streamline and improve your financial processes, not disrupt them. Proper planning and organisation during setup will ensure a smooth transition and integration with your existing systems.