Save On Accounting Fees: Using Buildium To Manage Property Finances

Property management can be a lucrative business, but it's also one riddled with potential financial headaches. From tracking rent payments and managing expenses to generating accurate financial reports, the accounting side of things can quickly become overwhelming. Many property managers end up shelling out significant sums for professional accounting services to stay on top of it all. But what if you could significantly reduce those accounting fees while maintaining complete control over your property finances? That's where Buildium comes in.

Buildium is a comprehensive property management software designed to streamline your operations, and a key benefit is its robust accounting functionality. By leveraging Buildium effectively, you can automate many of the tasks traditionally handled by accountants, freeing up your time and saving you money. This post will explore how Buildium can help you minimize your accounting expenses and manage your property finances like a pro.

1. Automate Rent Collection and Payment Tracking

One of the most time-consuming tasks for property managers is collecting rent and tracking payments. Buildium automates this process, significantly reducing the manual effort involved and minimizing the risk of errors.

  • Online Rent Payments: Allow tenants to pay rent online via ACH, credit card, or debit card. This eliminates the need to manually process checks and reduces the risk of late payments.
  • Automated Late Fees: Set up automatic late fee calculations and notifications. Buildium will automatically assess and apply late fees according to your pre-defined rules, saving you time and ensuring consistent enforcement.
  • Payment Reminders: Send automated payment reminders to tenants before rent is due. This helps reduce the number of late payments and improves cash flow.
  • Real-Time Payment Tracking: Track all rent payments in real-time, giving you a clear overview of your cash flow and outstanding balances. This eliminates the need for manual spreadsheets and reduces the risk of missed payments.

By automating rent collection and payment tracking, you'll spend less time chasing down payments and reconciling accounts, freeing up your time for more strategic tasks. This reduced workload can translate directly into lower accounting fees.

2. Streamline Expense Management

Managing expenses is another critical aspect of property management accounting. Buildium simplifies expense tracking and categorization, making it easier to monitor your spending and generate accurate financial reports.

  • Expense Tracking: Record all property-related expenses, including maintenance costs, utility bills, and property taxes.
  • Categorization: Categorize expenses according to your chart of accounts. This makes it easier to track spending by category and generate meaningful financial reports.
  • Document Attachment: Attach receipts and invoices to expense entries. This provides a clear audit trail and simplifies expense verification.
  • Vendor Management: Manage your vendor relationships within Buildium. Track vendor contact information, payment terms, and outstanding invoices.
  • Bank Reconciliation: Easily reconcile your bank statements with your Buildium accounts. This ensures that your financial records are accurate and up-to-date.

With streamlined expense management, you can easily track your spending, identify areas for cost savings, and generate accurate financial reports. This reduces the time and effort required to prepare your financial statements, which can translate into lower accounting fees.

3. Generate Accurate Financial Reports

Accurate financial reporting is essential for managing your property finances and making informed business decisions. Buildium provides a range of pre-built financial reports that can help you track your performance and identify areas for improvement.

  • Income Statement: Track your revenue and expenses over a specific period.
  • Balance Sheet: View your assets, liabilities, and equity at a specific point in time.
  • Cash Flow Statement: Track the movement of cash into and out of your business.
  • Rent Roll: View a list of all your tenants, their rent amounts, and their payment status.
  • Delinquency Report: Identify tenants who are behind on their rent payments.
  • Budget vs. Actual Report: Compare your actual income and expenses to your budget.

These reports provide valuable insights into your financial performance and can help you make informed decisions about your business. Moreover, having these reports readily available significantly reduces the time your accountant needs to spend compiling them, leading to lower bills.

4. Simplify Tax Preparation

Tax preparation can be a daunting task for property managers. Buildium simplifies the process by providing the information you need to file your taxes accurately and efficiently.

  • Schedule E Report: Generate a Schedule E report for each property, which summarizes your rental income and expenses.
  • 1099 Forms: Generate 1099 forms for your vendors.
  • Tax-Ready Reports: Access pre-built reports that summarize your income and expenses for tax purposes.

By providing the necessary information for tax preparation, Buildium can significantly reduce the time and effort required to file your taxes. This can translate into lower accounting fees and reduce the risk of errors.

5. Integrate with Other Tools

Buildium integrates with a variety of other tools, such as bank accounts, payment processors, and accounting software. This allows you to streamline your workflows and automate many of the tasks involved in managing your property finances.

  • Bank Integration: Connect your bank accounts to Buildium to automatically import transactions.
  • Payment Processor Integration: Integrate with payment processors like Stripe or PayPal to accept online payments.
  • Accounting Software Integration: Integrate with accounting software like QuickBooks Online to seamlessly transfer financial data.

These integrations can help you automate your workflows, reduce manual data entry, and improve the accuracy of your financial records.

6. Learning the Ropes: Training and Support

Buildium offers comprehensive training and support resources to help you get the most out of the software. Take advantage of these resources to learn how to use Buildium effectively and manage your property finances like a pro.

  • Online Training Courses: Access a library of online training courses that cover a wide range of topics, from basic accounting principles to advanced Buildium features.
  • Help Center: Search the Buildium Help Center for answers to your questions.
  • Customer Support: Contact Buildium customer support for assistance with any issues you may encounter.

By investing in training and support, you can ensure that you're using Buildium to its full potential and maximizing your savings on accounting fees. Don’t be afraid to experiment with the software and explore its features.

Conclusion: Take Control of Your Property Finances

By leveraging Buildium's robust accounting features, you can significantly reduce your reliance on professional accounting services and save money on accounting fees. From automating rent collection and expense management to generating accurate financial reports and simplifying tax preparation, Buildium empowers you to take control of your property finances and manage your business more efficiently.

While Buildium can handle the bulk of your day-to-day accounting needs, it's still wise to consult with a qualified accountant for complex tax planning or financial advice. However, by using Buildium effectively, you can minimize the amount of time your accountant needs to spend on your books, resulting in significant cost savings. So, take the plunge, explore Buildium's features, and start saving on those accounting fees today! You might be surprised at how much you can handle on your own with the right tools.