Best Property Management Accounting Practices to Stay Successful

What follows are a few tips to help you with your property management bookkeeping, so you can avoid issues and take advantage of what is available.

Be Meticulous with Financial Records

The better you maintain your records, the easier it will be to track what you are doing and provide solid protection in case you are audited. In addition, you'll be able to see trends and answer common questions about your property investment. This means that you may be able to spot potential issues in the early stages and make plans to counter its effects. In addition, keeping good financial records helps with the following;

- Maintenance Issues

- Market Performance

- Local Market Competitiveness

The more documents you can keep for every transaction, the better off you will be. This is where going digital can really help if you have the proper backups in place.

Create Trust Accounts

You want the funds allocated to running your business being used in the proper way. So, you'll need to start by creating trust accounts to help you organize and ensure that your money is being spent the right way. Unfortunately, the misuse of trust accounts is the #1 reason why property management companies get audited, so you will need to be careful.

Create one account for security deposits and one account for collecting rent and paying bills for each client. It may not be required, but it will help you maintain separate records that will protect you during the auditing process.

Separate Personal & Company Funds

The right property management accounting keeps your personal funds and those running the company separate. You may be tempted to funnel one into the other, but bringing the funds together is illegal and will get you into trouble. You'll need to check with local, state, and federal laws, but here are some areas you should know.

- Deposit Funds for the Proper Account

- Withdraw Commissions and Fees from Proper Account

- Set Time Limits on When Funds Can Be Withdrawn

- Do not Mix Personal Funds with Funds from Your Business

By following these simple rules, you can avoid getting into trouble and keeping your funds separated in the proper manner.

Effective property management bookkeeping means that you can build upon your success while minimizing mistakes. In essence, you can avoid basic issues that often plague property managers by simply keeping separate accounts and meticulous records that insure your protection in case you are audited.

Plus, if you employ the right property management accounting practices, you can spot potential issues along with good opportunities to make your business even more money. It does take a little time, but following the right practices brings rewards that you may not see today but will enjoy tomorrow.

What Makes CoWorking Spaces Ideal for Entrepreneurs

 How many new startups do you think India must have added in 2017?

You will be amazed to know that, according to the Nasscom Startup Report India saw an addition of over 1,000 startups last year. Yes, it means 1000 new companies or entrepreneurs. Today, India has the third largest startup ecosystem across the world, amidst mounting competition from countries like UK and Israel.

The new additions take the total number of technology startups to nearly 5,200, making tech-enables or technology startups as the hottest new companies. The country also witnessed a rapid rise in the business with these startups focusing on verticals like health tech, fintech, e-commerce and aggregators.

This comes to the next interesting question of how with restricted finance these new businesses, manage office spaces. With the whopping real estate prices, buying an office space means using funds that can otherwise be used to develop infrastructure, technology, operations, last mile delivery, etc. And if you thought the other option of renting a space was better, then a good location would mean higher rents and that in return, blocking not only a certain amount every month, but also pay an upfront security deposit of three to six months that is over and above the rent. This thus blocks huge funds that can otherwise be used wisely and for more important things.

Therefore, to keep that capital unblocked, we have an option for startups, professionals, small businesses, or any other business, and it is coworking. Welcome to era of coworking or in simple words, shared workspaces. These office spaces address the immediate needs of their customers by offering space options varying from pay-per-day to a limited period, thereby, making them affordable. Not only this, for meetings or a daily permanent space, some even offer conference rooms and fixed spaces for your workforce. These options give flexibility and helps save cost as you decide, what and how much you need.

Want to know more? We bet you do!

Unlike a rented space which comes unfurnished, coworking spaces are non-contractual and require no upfront investment. They come furnished, therefore, making them ready to move and ready to use. They also offer a cornucopia of services and benefits like private cabins, high-speed internet, cafeteria, lockers and much more, thereby, giving companies an atmosphere of a regular office and not of a rented office space.

That's not all, these are only the basics checked, let's look at more benefits.

Choose your location is one of the biggest benefits of a coworking space. As these places are located in more than one location, they give flexibility to companies to make their employees work from any of its convenient spaces. Also, the co-working spaces might be located in a prime area that gives solo entrepreneurs or small businesses an access to afford and work out of a prime location. Whereas, if you think of owning or renting an office space, it's a fact that the rent is primarily of the location and the facilities only later.

One of the biggest advantages of a coworking is to add-on space as you grow. Coworking gives companies an option to keep adding workspaces as and when they increase the workforce and not on the basis of growth projection, which is the case in a rented office space. Also, in case of customer or investor meetings, a coworking area seems to be bigger, is professionally managed and includes basic amenities. Whereas, the latter is restricted to the office space that the company has paid for and service and amenities on its willingness to spend at that time.

Apart from startups, these spaces are a boon for independent workers such as designers, developers and writers, as they work along with several like-minded professionals.entrepreneurs and innovators. The work culture and networking events help people of different backgrounds collaborate on a single platform enabling knowledge sharing and best market practices, thus, making them a conducive work environment