In a perfect world, we prepare for tax season all year long. In this scenario, we are 100 percent organized, all of our records are pristine and all the information we've ever collected from a tenant or property owner is complete and accurate.
Don't laugh too hard! We all know tax season never goes that smoothly and even if your business was completely organized and efficient, your renters and clients are only human. Keep Murphy’s Law in mind; errors will occur.
Verify information early to begin tax season with confidence. If you manage a large number of properties and source work to various vendors, hiring a trustworthy seasonal employee gives you peace of mind that you have names spelled correctly, current addresses on file and tax ID numbers. Don't forget to get your CPA’s help with W-9s for those who are receiving 1099s. Think ahead, and consult with your CPA on items such as when you may be required to electronically file those W-9s.
Your tax deductions should also be a priority. Deductions, such as mileage, are standard fare on a per mile basis, but you should also consider whether items such as basic landlord insurance policies or blanket policies may be deductible. Other seemingly trivial tasks absolutely add up. If you manage a large number of properties, repairs, maintenance and general business expenses add up to significant deductions over the course of a year. Remember to keep track of expenses related to your office space and all corresponding supplies used to manage your properties—any home office space that is used to manage your properties.You may be able to deduct home expenses based on a percentage of square footage dedicated to your business.
A good property management accounting software prevents you from having to track down receipts, payment records and client information. Consider these eight ways Propertyware accounting software can help you through this tax season.
1. Capture and collect payments
By adopting ResidentDirect, you are able to collect payments easily, without paying merchant services fees.
2. Simplify the process for paying bills
Accounts payable is so much easier when all of your notes, documents, vendor information, bills and payment info is organized and easily accessible.
3. Manage bank reconciliations
Picture all of your bank information, consolidated: bank account, deposits and reconciliations and much more. This organization greatly simplifies the year-end close as you get your books ready for tax time.
4. Enable online payments
Centralized payments made to your property owners and vendors makes a huge difference for your peace of mind.
5. Manage your budget
From property level to business wide, a portfolio of income and expenses can make you secure in your ability to see the big picture.
6. Manage fees with accuracy
Fee management and accounting tools are designed to make that part of your business a piece of cake.
7. Generate financial reports
In one click, you could be viewing your business from dozens of customizable, easy-to-read reports. From cash flow to profit and loss, your business' financial health is at your fingertips.
8. Sync with QuickBooks®
Find relief in knowing that the right property accounting software can sync with your third party accounting software such as QuickBooks®, Microsoft Dynamics and others. These platforms streamline the tax preparation work for your accountant, saving you time and money.
This time of year can be stressful, but with the right preparation and software at your fingertips, life can be easy, even at tax time! Learn how property management accounting software can help.
**Please note that this blog article, and its contents, is being provided for informational purposes only. It does not constitute legal, tax or accounting advice and should not be used or relied upon as a substitute for such advice. You should consult with a qualified professional for any legal, tax or accounting-related questions you have relating to the subject matter.**