For any real estate agency, accounting is a crucial element of a successful business in this industry. The real estate industry is similar to other commission/sales-based businesses in the way that real estate agents are awarded commission for having a successful work perfomance.
Instead of spending a lot of capital on accounting firms, they have the option to invest in an accounting software that can imitate the accounting-related tasks performed by such a firm. Thus, you are able to manage rent collection from tenants, income and expenses, reporting, calculating and paying commission to agents, enabling performance data analysis, closing real estate sales etc. An accounting software is a good method for real estate businesses to automatically manage all their financials and keep their accounts organized so that they can focus more on their clients. Bellow, let’s take a look at the top 3 most popular real estate accounting apps this year:
QuickBooks is a great accounting platform for agents from retail industries because it helps them manage accounting-related tasks such as: expenses and sales, billing, inventory and other payments via one single dashboard. You can sync all your accounts with its dashboard to automatically import all your bank or credit card transactions and other data, to view your monthly actionable reports as well as rent tracking and collection with the customized invoicing all in one system. Using this tool you can have access to your agent’s bank account data for direct deposit to make payments more quickly and you can also maintain the database of sales transactions.
Pricing: For independent contractors, freelancers and self-employed Quickbooks charges $10/month. For businesses, there are three plans available: the Simple Startprices which starts at $15/month, the Essential plan which costs $30/month for the Essentials plan, and $50/ month for the Plus plan.
2. Property Matrix
Like, Buildium, Property Matrix is not an accounting software but a user-friendly and customizable online-based tool to manage your property management business. It was designed to give property managers complete control by allowing them to automate accounting tasks, streamline payment processing, see where their revenue is coming from. Other accounting functions are: handling accounts payable and receivable, access to detailed general ledgers, a detailed transaction history.
Property Matrix lets users charge and collect rent with ease by using an online payment portal for automatically recognizing payments and accepting ACH, credit card, and checks.
Pricing: Property Matrix has three available plans: the Standard plan which costs $239/month, the Ultimate plan priced at $289 which has all the Standard features plus some extra features and the Enterprise package for over 1000 units which has a volume-based pricing that requires a personalized quote from the company.
Buildium is a web-based property management solution for real-estate SMBs because it allows complete control over various aspects of their business such as: maintenance expenses and requests, rent and vacancy cycles. It provides real estate-related accounting functionalities, such as: online payments via the software’s tenant portal, property accounting, automated rent collection and rent or late fee reminders, tenant and lease tracking etc. Additionally, it helps you to generate and eFile your1099s directly from the platform and stay organized when tax time comes and also to create financial and transaction reports, cash flows etc. Therefore, this tool is ideal for property managers because it allows them to manage more rental units, streamline payment processes and monitor their key financial metrics.
Pricing: Buildium offers several enterprise pricing plans depending on the number of units you wish to add. Therefore, the Core pricing option starts from $45/month for a single unit, the Pro pricing scheme costs up to $5,060/month for 5000 units. There are special discounts for Pro package subscribers and extra fees for: electronic leases, online payments for residents etc.