How do you work with property owners and investors on accounting?

1 Understand their goals and expectations

The first step to working with property owners and investors on accounting is to understand their goals and expectations. What are they looking for in terms of return on investment, cash flow, and property value? How often do they want to receive financial reports and statements? What level of detail and transparency do they require? How do they prefer to communicate with you? By clarifying these questions upfront, you can establish a clear and consistent accounting process that meets their needs and avoids misunderstandings.

2 Use a reliable accounting software

The second step to working with property owners and investors on accounting is to use a reliable accounting software that can handle the complexities and nuances of property management. A good accounting software should allow you to record and categorize income and expenses, generate invoices and receipts, track rent payments and deposits, manage maintenance and repairs, reconcile bank accounts, and prepare tax forms. It should also integrate with other tools and platforms, such as online payment systems, property management software, and cloud storage. Using a reliable accounting software can save you time, money, and errors, as well as improve your accuracy and efficiency.

3 Follow the GAAP standards

The third step to working with property owners and investors on accounting is to follow the GAAP standards. GAAP stands for Generally Accepted Accounting Principles, which are the rules and guidelines that govern how financial information is reported and presented. Following the GAAP standards can ensure that your accounting is consistent, comparable, and credible, as well as compliant with the laws and regulations that apply to your industry and location. Some of the GAAP standards that are relevant to property management include the accrual basis of accounting, the matching principle, the revenue recognition principle, and the cost principle.

4 Provide regular and timely reports

The fourth step to working with property owners and investors on accounting is to provide regular and timely reports that show the financial performance and condition of their properties. Reports are not only a way to inform and update your clients, but also a way to demonstrate your value and professionalism. Some of the reports that you should provide include income statements, balance sheets, cash flow statements, budgets, variance analyses, rent rolls, occupancy rates, and delinquency reports. You should also provide customized reports that address specific questions or concerns that your clients may have. You should deliver these reports on a monthly, quarterly, or annual basis, depending on your agreement with your clients, and always on time.

5 Communicate effectively and proactively

The fifth step to working with property owners and investors on accounting is to communicate effectively and proactively with them. Communication is key to building trust and rapport with your clients, as well as resolving issues and preventing problems. You should communicate with your clients regularly, not only to share reports and statements, but also to discuss their goals, feedback, and suggestions. You should also communicate with them promptly, especially when there are significant changes or events that affect their properties, such as vacancies, repairs, or disputes. You should also communicate with them respectfully, honestly, and professionally, using clear and simple language and avoiding jargon or technical terms.

6 Seek continuous improvement and education

The sixth step to working with property owners and investors on accounting is to seek continuous improvement and education. Accounting is not a static or stagnant field, but a dynamic and evolving one that requires constant learning and adaptation. You should always strive to improve your accounting skills and knowledge, as well as keep up with the latest trends and developments in the property management industry. You can do this by taking courses, attending webinars, reading blogs and books, joining networks and associations, and seeking feedback and advice from your peers and mentors. By seeking continuous improvement and education, you can enhance your value and credibility as a property manager, as well as provide better service and results to your clients.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?