3 Accounting Avenues to Support Property Landlords
Tags – Accounting Tips for Property Landlords
This is because, at least in the UK, property is the crowd favourite mode of investment. The said crowd interest in property has led to a few shared accounting practices that can help you out extensively.
Such is the case that, in many cases, the bread and butter for accounting practices are property landlords. The positive thing here is the fact that there are lots of shared best practice to support property landlord and investors.
Given that the end of year tax run is approaching quickly, with deadlines hitting for 31st January 2020, we thought of putting together a few suggestions.
So, if you are looking to put processes in place that will support your accounting needs or even better still, where you can keep a better eye on your numbers, here are here are 3 useful tips:
1. Digital Tools For Property Landlords
It goes without saying but there are multiple digital tools available on the market that can help you out.
For instance, if you’ve got a portfolio of properties without a property manager, you will find yourself constantly on your toes to stay on top of your gas certificates and ensure the completion of repairs. In order to track such tasks, there are digital tools available that can help you organise your efforts better.
In addition, you can also add other individuals as collaborators. For example, your tenants could log into the system and launch any repair requests instead of hitting you up for every little change or details. Put simply, using a digital tool for organising your property needs is both time and effort effective.
2. Digital Accounting for Property Landlords
Similar to our suggestion number 1, there are digital tools available for accounting too.
Here, the traditional package with history of credibility is Sage.
However, Sage is not your only option anymore.
New digital plans have entered the market with impressive options, for example XERO.
Although Xero is one on the pricey side, it will allow you to plugin with other apps, while also making it easy to share your books with your accountant or bookkeeper. Also, the user interface for Xero is pretty standard for your digital needs, allowing you to pull all your numbers from your bank account, with the added allowance to group numbers. This grouping of numbers then allows you to understand your expenses and sales better.
Another option here is Quick Books.
Again, Quick Books is a simple package that gives value at an entry level. Simply, Quick Books has relatively lesser features to get your head around and is therefore, one of the cheaper options too.
The idea for most of these products is simple: Business owners can get on what they do best – their business — rather than training themselves to become accountants. However, a little playing with the numbers allows you to understand the systems a little better too.
3. Banking for Property Landlords
Next area that has revolutionised in the near past is banking. So, let’s ask you a simple question:
Who do you bank with for your business needs?
Traditional high street banks have systems built on legacy, where they are currently struggling to adapt with technology. In other words, traditional banks are finding their evolution process difficult because of the limitations exposed on them, internally as well as externally. The most amount of innovation we have seen from traditional banks is in regards to launching apps. But, such launches are a bare minimum in the current market.
On the other side, digital options, e.g. Starling allows you to transfer to a contact without a key card as its developed for mobile and allows security checks to take place through facial recognition. It still stumps us to think that some business owners have to physically walk to a traditional bank to make some payments. In this day and age, that should not be the case whatsoever.
We realise that property landlords will have a number of transactions where the new digital systems allow you to see where you are spending, what areas of business are growing quickest, and what areas can be improved. By expanding your options to more efficient ones, you get to focus on spending your time elsewhere, preferably growing your investments even further.
To learn more, get in touch with your local leicester accountant – www.mvcaccountants.co.uk
And, to learn about other connected areas with digital accounting, check: