When you own real estate, there are a lot of numbers to keep track of. The more properties you own, the more figures you have to calculate. If you aren’t careful, the numbers can get away from you—fast. To keep all of your financial numbers in one place, your best bet is to invest in real estate accounting software.
What is it?
Real estate accounting software are computer programs that let you manage your real estate financial transactions. The programs can range in complexity; you could use a simple bookkeeping program or something that manages all of your real estate transactions and finances. Either way, this software will help you handle your financial information more efficiently and help you decrease the chance of making a costly accounting error.
Why it’s important
As previously mentioned, using real estate accounting software will cut down on your chances of making mistake. There’s no reason to make a math mistake doing everything by hand when there a number of systems out there that will calculate everything accurately every time—as long as the data is entered correctly of course!
Using an accounting software program will let you get through crunching numbers a lot faster. You have a life outside of your real estate holdings, don’t spend those precious moments calculating budget sheets hoping that you got every penny added up right.
Speaking of crunching numbers, another benefit to using a real estate accounting system is you could save money. Whether it’s you or someone else on your team, using an accounting program saves time and reduces the need to pay for a big accounting department. Depending on how much you spend on software, it could be less than hiring an outside accountant to handle your books. Just be sure to figure out and compare the cost of a software system versus having an accounting team.
Information on demand
When you own property, people are going to ask you for all sorts of financial information. A real estate accounting program will help you produce it quickly. Whether fellow investors are looking for a status update or someone on your team needs financial statements for an upcoming meeting, your accounting system will be able to spit out the information for you quickly—much faster than if you had to dig it up and add it up by hand. Plus, most systems can not only alert you to late payments, but calculate late fees and apply them automatically without you having do any additional calculations.
You have enough on your plate to have to worry about running numbers manually. With a solid real estate accounting system, your financial records will be organized and accurate, which will save you time and money.