7 Tips to Improve Your Property Management Expenses and Financials

The accounting, purchasing, and budgeting processes in property management don’t have to be painful. Managing the complexities of a large or small portfolio of apartments and other lease properties requires a keen eye and efficient processes. And as difficult and cumbersome as it may sound to blend all the moving parts of property management into a tidy, resourceful financial package, today’s software solutions can offer great relief. Handling property management financials and expenses By using a software solution to help stay on top of all the pieces, the front office can more easily identify how money flows in and out of a portfolio. And tracking accounts through integration with property management software will lead to a better understanding of the financial health of any portfolio, from the past and to the future. Here are 7 ways your property management company can improve its accounting practices: 1. Establish a spend management program Spend management is the backbone of effective spending for any company. The framework of best buying practices supports the company’s philosophy and establishes controls on spending that fit within prescribed budgets for any part of the operation, whether maintenance items like flooring or notepads for the front office. Through creation of a corporate spending policy, employees are held accountable for their purchases, which in turn reduces maverick spending site wide. Managing eProcurement, payables processing, and invoice management processes in one centralized online solution is essential for any company to stay within a budget at any time of the year. 2. Select one accounting process The size of the operation may determine how the company records income and expenses. While larger companies often utilize the accrual method, smaller operations may find it easier to use a cash accounting method. Expenses and income are logged when they drop into the company’s account. This provides visibility...