Simple Bookkeeping for Your Rental Property: A Comprehensive Guide

Investment in rental property affords an attractive way to create additional income while building equity in a tangible asset. However, rental property ownership entails many responsibilities, one of which is bookkeeping. Maintaining accurate and well-organized financial records for rental properties isn’t just good business practice, it’s also a legal requirement. Here, we’ll unpack simple bookkeeping for rental property and introduce how a tool like the PropertyMe Site can simplify the process.

The first step towards simple bookkeeping for your rental property is to keep track of all income and expenses. Keep a record of all the payments you receive from tenants. This includes not just rent, but also any money collected from tenants for utilities or other ancillary services. Aside from preserving all receipts, writing down certain financial transactions immediately such as rentals and advances is a good way to get started.

It’s as vital to maintain a comprehensive record of expenses. Costs such as property taxes, insurance, repairs, maintenance, and interest paid on mortgages should all be carefully documented. Additionally, overhead expenses such as office supplies, business travel, and mileage, among others, can be deductible business expenses that you’ll want to track closely.

Another crucial area of bookkeeping for rental properties involves keeping track of the property’s value. It includes the cost of any property improvements made, such as additions or upgrades, that can increase its value over time. Again, save all receipts and keep detailed records of any work performed, including labor costs and any related expenses.

Next, it’s a good idea to keep a separate bank account for your rental property business to make bookkeeping easier and more accurate. Merging your personal and business finances could lead to headaches at tax time and make it hard for you to obtain accurate valuation or profitability statistics about your property.

More than ever, landlords are relying on accounting software like the PropertyMe Site to simplify their bookkeeping operations. With its intuitive dashboard and comprehensive features, PropertyMe takes the hassle out of bookkeeping. It organizes and categorizes income and expense transactions, generates income statements and balance sheets, and provides comprehensive tax reports. Additionally, the site facilitates other types of financial reports and projections that can help you manage your rental property business more effectively.

While the benefits of using such software are clear, you must ensure that you know how to use it correctly. Training in its use, understanding all its features, and knowing how to analyze the reports it generates can give you the maximum advantage.

There’s a lot to learn about bookkeeping for rental properties, and we’ve only touched on the fundamentals. It can be daunting, but don’t worry. A combination of good habits, such as diligent recording of transactions and routine checks of your bank balances, coupled with modern tools like the PropertyMe Site, can go a long way in simplifying your rental property finances.

Taking the time to understand the basics of rental property bookkeeping and utilizing the right tools will not only keep you on the right side of the law, it will also allow you to keep a clear view of your financial status. After all, understanding your financial position at all times is essential for making informed decisions about your investment, including knowing when to grow your property portfolio or when to consolidate.

In conclusion, simple bookkeeping for rental properties is not necessarily ‘simple’, but it can be made less daunting with careful organization, separate financial accounts, and the use of property management tools like the PropertyMe Site. Whether you’re a budding rental property owner or an experienced landlord, efficient and effective bookkeeping is a keystone of rental property management.

The Pivotal Function of a Manager in Property Accounting

Property accounting is a multifaceted domain integral to real estate business. It requires the dexterity of financial management and the diverse knowledge of real estate. Unarguably, the success of a real estate venture relies significantly on proficient property accounting. The person invigilating this function is the Manager of Property Accounting. Let’s delve deeper into their role and responsibilities.

Being one of the pivotal figures in the management hierarchy, a Manager of Property Accounting oversees the financial aspects of a company’s real estate portfolio. He or she is charged with the responsibility of streamlining revenue cycles, cutting unnecessary costs, managing financial risks, and ensuring regulatory compliance.

Regular tasks include preparation of financial statements, conducting audits, developing and maintaining elaborate budget forecasts, and tax planning. Additionally, the position also encompasses duties such as cash flow management, portfolio analysis, and strategic financial planning. They are often tasked with lease administration, asset management, and responsive landlord support.

Now, all these duties could be overwhelming without the right tools in hand. It’s here that the PropertyMe Site comes into play.

PropertyMe

is a sophisticated and user-friendly property accounting and management software solution. The platform boasts an intuitive interface and powerful features that help streamline and automate a multitude of property accounting tasks. These cover tenant and lease tracking, bank reconciliations, tax lodgments, rental ledgers, compliance checks, and generation of relevant financial reports.

By using a comprehensive system like the PropertyMe site, a Property Accounting Manager can significantly improve the efficiency and performance of their role. It not only enhances accuracy and speed in their work but also effectively bridges gaps between different stakeholders. Constant updates ensure that users remain abreast with changing regulations, helping maintain industry compliance.

In essence, a Property Accounting Manager plays a critical role in maximizing the profitability and performance of a real estate business. They facilitate the integration of financial knowledge with property management practices, laying a strong foundation for the company’s financial health. Use of advanced tools like the PropertyMe Site amplifies their productivity and ensures smooth and efficient processes.

While necessary financial acumen is indispensable, it’s also pertinent for a Property Accounting Manager to possess solid communication skills. This aids in effective coordination with other internal departments and external entities like clients, tenants, and regulatory authorities. Furthermore, they need to stay informed with regard to the latest trends and advancements in property accounting, ensuring they are not left behind in this rapidly evolving landscape.

In a nutshell, the proficient Manager of Property Accounting is a dynamic blend of a numbers guru and real estate geek, leveraging both to ensure the sound financial health of any real estate enterprise. Through platforms like the PropertyMe Site, they’re able to efficiently accomplish their tasks and contribute considerably to the organization’s success.

Important Criteria for Electronic Storage of the Form I-9

by

Ann Allott

How do you make a decision about electronic completion and storage of the Form I-9? Is electronic completion and storage right for your company? What benefits will you gain by completing the

Form I-9

in electronic format?

Many companies would like to go paperless to reduce cost. Some companies may choose electronic storage to reduce the physical space required to store paper forms. Reducing cost, saving time, and insuring accurate completion of the form are the main reasons a company chooses electronic storage. Some employers may choose to complete a paper version of the I-9 Form and scan and save it. This is the simplest version of electronic storage. If your company chooses this method, once you have securely stored the I-9 Form in electronic format, you may destroy the original paper Form I-9.Electronic Employment Elibigility Verification According to USCIS (U.S. Citizenship and Immigration Services), you may complete or retain the Form I-9 in an electronic generation or storage system that includes: 1. Reasonable controls to ensure the integrity, accuracy, and reliability of the electronic storage system; 2. Reasonable controls designed to prevent and detect the unauthorized or accidental creation of, addition to, alteration of, deletion of, or deterioration of an electronically completed or stored Form I-9, including the electronic signature, if used; 3. An inspection and quality assurance program that regularly evaluates the electronic generation or storage system, and includes periodic checks of electronically stored I-9 Forms, including the electronic signature, if used; 4. A retrieval system that includes an indexing system that permits searches by any data element; and 5. The ability to reproduce legible paper copies. USCIS also allows electronic signatures if you complete I-9 Forms electronically. When a company chooses to use an electronic signature, the system for capturing electronic signatures must allow signatories to acknowledge that they read the attestation and attach the electronic signature to an electronically completed Form I-9. The system must: 1. Affix the electronic signature at the time of the transaction; 2. Create and preserve a record verifying the identity of the person making the signature; and 3. Provide a printed confirmation of the transaction, at the time of the transaction, to the person providing the signature. If you do not comply with the standards for capturing signatures electronically, ICE (Immigration and Customs Enforcement) will determine that you have not properly completed Form I-9, in violation of section 274A(a)(1)(B) Use these 25 questions when considering any paperless electronic storage system to help guide you toward an informed decision. The Form I-9 – 25 Questions Concerning Electronic Storage Systems 1) How secure is the system? Remember, you are storing very vital personal information on each Form I-9. Does it meet the criteria set forth by USCIS? 2) Where is the information stored? Is it on your company network or is it an on-line storage system? 3) What type of back-up is in place to ensure data is never lost even in the event of a natural disaster such as flood or tornado? 4) Who will have access to the information stored in the system? Does the system have an audit log to record every time a record is accessed and who accessed it? 5) If requested by ICE, will you be able to produce all current employees I-9 Forms and all terminated employees I-9 Forms going back 3 years time within 3 business days? 6) If you cannot produce the documents according to a legitimate Government request within 3 days, does the software/system provider have insurance to cover your companys losses and fines for failure to produce within the time allowed? 7) What provisions are in place in the system for complying with various State specific employment verification issues? 8) What provisions are in place to handle the Form I-9 if an employee is transferred to a new location? 9) Does the program have a tickler system to remind you when I-9 Forms need updating when work authorization documents expire that are necessary to re-verify? 10) Does the program provider offer a training program for field agents who will be completing the Form I-9? 11) Does the provider offer training concerning the use of E-verify and /or SSNVS (Social Security Number Verification Service)? 12) Who will observe the prospective employee complete Section 1 of the Form I-9? 13) Who will observe the prospective employees physical appearance and identity documents to ascertain they appear to be the documents of the individual who is presenting them? 14) Can an applicant complete the form without including his/her Social Security number in Section 1? 15) Is there a place in the system to store the date of termination? 16) What provisions are in place for updating the Form I-9 when an employee changes their name for payroll purposes? 17) How are the ID and work authorization documents produced by the employee stored? 18) Can the system store the confirmation or non-confirmation returned by E-verify? 19) Are you able to store SSNVS results? 20) Are there provisions in place to handle special circumstances such as; a. An employee who enters the US on an L-1A and E-verify will not certify they are eligible to work? b. What do you do when a new hire shows a Native American card and E-verify will not certify them? c. What do you do when a foreign worker applies for a Social Security number and is rejected by the SSA without a receipt because their system does not yet have his or her entry into the US? d. If an employee is rejected because he or she presented documents that did not match the E-verify document, such as an I-551, and the same applicant comes back with a new name and new documents and passes E-verify, how is it processed? 21) Does the system provider have insurance to cover losses if, as a result of their system, a person is successful in collecting double wages at USDOJ/OSC because the applicant was not hired? 22) Does the system provider offer advice about policies that should be in place to keep the system current with government standards? 23) Does the provider recommend the use of IMAGE (Ice Mutual Agreement with Employers)? 24) Does the provider train clients on how to recognize fake identity documents? 25) If a new hire presents a Green Card, what number from the I-551 (lawful permanent resident card) does the system require in Section 2, List A? Completing and storing I-9 Forms electronically can be a great solution for most employers. It is important to do your homework and make an informed decision before selecting the electronic storage system that best suits your type of business. Form I-9, Employment Eligibility VerificationAllott Immigration Law Firm

specializes in all aspects of immigration law. Their team of dedicated lawyers assists clients on a worldwide basis with Form I-9 Compliance, Employer Sanctions Law, Visas, Detention & Removal Proceedings, Citizenship & Naturalization and U.S. Passports.

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