The best accounting software for landlords
Published on 1st October 2019 by Laura West
For many landlords, managing a portfolio of properties in the buy to let sector can be a challenging and stressful business. However, there is help available thanks to accounting and property management software packages which are specifically tailored to the needs of landlords.
These allow landlords to take advantage of innovative technology to monitor how their investment properties are performing, as well as scheduling essential maintenance and organising new rental contracts. This can be done by using an app on a smartphone or on a business computer.
A landlord’s job has become far simpler thanks to the invention of specific software which has been designed with this type of business in mind. Finding the right software solution for property portfolios can prove difficult, with many property management software solutions on the market. This is why we have formed a list of the reasons why accounting software for landlords is so important, and outlined the various tools and features which should be included in your chosen software package.
If you have at least one investment property, consider investing in a cloud-based system for property management. A cloud-based solution will allow your business to expand, as the software will grow with your business, while avoiding the need to switch to an alternative provider or upgrade.
You may wonder why you should invest in software which is specifically tailored to the needs of landlords when you are satisfied using Microsoft Excel or similar software already. While it is true that you can calculate expenditure and income, this spreadsheet software only has basic features, and as your portfolio becomes larger, a simple spreadsheet will not deliver the necessary features you will need. In addition to this, you will need to monitor transactions, as well as meet the guidelines from HMRC for calculating tax liabilities.
Essentially, the property management software that a landlord selects should improve how they operate their business, boost profitability and keep running costs down.
By investing in good quality software, you are investing in the future of your business by removing some headaches which are an inevitable part of managing property, while simultaneously achieving efficient growth.
It is also important to note that any landlord who is searching for accounting software and property management software is essentially finding a way to keep accurate financial records, manage their tenancies and help with accounting procedures. With HMRC taking an increasingly closer interest in buy to let property investment, it is essential that you pay the right tax on the earnings from your portfolio.
It is crucial that property accounting software offers simple accounting processes, plenty of storage for the details of each property, integrated reminders for daily tasks and reports for the property portfolio which can be accessed at one click. Specific accounting procedures and features which landlords may also want could include equity reports, tax reports, cash flow reports and easily generated reports on rental expenses and income.
Managing your property portfolio effectively and keeping track of your expenses are crucial steps in successful investments, as any experienced landlord knows. New landlords, however, may be unaware of the need to obtain proof of identification for tenants, record references and meet the checks for Right to Rent legislation.
Accounting software can also prove crucial for landlords who do not live in close proximity to their investment properties, as frequently travelling can prove inconvenient. However, you will still need to complete important tasks, including renewing annual Gas Safety certificates and accessing legal documents whenever needed.
Accountancy software for landlords can also complete the SA105 form for property by accumulating all your tax details in one place, which is vital for both busy, experienced landlords and accidental landlords alike. Having accurate data and records will also help your accountant.
Software should allow a landlord to effectively manage their portfolio, so it is worth taking the time to search for a programme which best suits your needs. If in doubt, ask your accountant for advice.
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