Accounting outsourcing is not new and over the years businesses have realized the importance of outsourcing. Outsourcing provides a cost effective solution and saves time and resources – the major assets any property management company can have, whether you are a commercial real estate business or a residential management company.
Outsourcing not only focuses on lowering the head count or restores the core competencies of a company. But is about making your firm do what it does the best; it can be leasing, day-to- day operations or HOA management. And a multifamily company with a few thousand (or hundred of thousand for that matter) units should not focus at the way their bills are paid as a core capability.
It is often noticed that property managers overlook the accounting functions or do not have the time. And this is where a specialized property management accounting outsourcing company can help. Apart from the experience these firms also have latest technologies like accounting software which facilitates the work to be done faster and at a cheaper cost. You now do not have to be concerned about the financial report, keeping records, balance and profit and loss sheets as the outsourcing firms takes care of all these activities.
Fine accounting skill, a strong working knowledge, an array of real estate and non-real estate accounting packages, proficiency in latest technologies are some of the strengths of these real estate accounting outsourcing firms. Apart from these they also have lower service cost as compared to an in-house accounting team.
Some of the important task that can be outsourced in Property Management Accounting
Finance and Accounting
• Accounts Payable (AP) / Accounts Receivable (AR)
• Tenant Bill-Back Charges
• CAM Reconciliations
• General Ledger
• Budget Entry & Reporting
• Record Keeping / Auditing
• Financial Statements & Reports
By using the latest accounting and reporting software, the accountants of outsourcing companies provide the clients with meticulously structured, well-timed and accurate reports, budgets, and files.
The outsourcing company accountants are well trained with the software used for real estate accounting. Below mentioned are some of the software’s that are widely used.
• Yardi-Voyager, Genesis
• QuickBooks and Quicken
• Spectra Property Management
• The Property Manager
• Timberline Property Management
• MRI (by Intuit Real Estate Solutions)
• Avid Payable
• Microsoft Excel (in VLookUp, Pivot)
Besides cutback on the capital by elimination of avoidable accounting staff and other overhead costs, the advantages that companies realize include the following:
• Systematic work flows process
• Real-time, remote access
• Workforce flexibility
• Increase in productivity
• Complete financial control
Companies looking for improved quality and effectiveness as well as trying to lower the costs should evaluate outsourcing options. Outsourcing accounting functions offers great benefits over long-established service delivery models. Outsourcing offers property management companies a significant added tool to consider, especially during the tough economic times.
Additionally, it is also important to choose the outsourcing service provider wisely. It is important to ask for references and do background checks to avoid any future discrepancies. If chosen rightly the property management accounting firms can be a boon for the company as it saves time and energy.