One of the most important things in property management accounting is to make certain cash flow is accurate and running smoothly for every location. This includes monitoring all bank account transactions, such as deposits and payments. If not managed properly, things can quickly unravel: checks are cut for work performed when there are low funds in the account, resulting in serious issues such as bounced checks. Another thing to remember is that the owner may want to know whether improvements can be made or they may want to do a draw (a distribution of funds provided to the owner). Each of these actions requires someone to have detailed knowledge of whether or not there is enough money to do so.

Another significant part of accounting in property management is the monthly distribution to tenants of rent and assessments. While tenants are aware of their due date, it’s part of our job to prepare these statements that show each charge, including any additional costs such as late fees and things of that nature. It’s always important that the tenant be able to see a detailed account of charges in case they are not paying their usual rate that month.

Finally, one of the most essential tasks that accounting handles within property management is paying the bills! Most buildings need regular maintenance, such as landscaping, janitorial services, or pest control. These recurring bills must be paid to each vendor, and accounting manages all of those things: from receiving invoices to entering and processing them for payment. A weekly check run is prepared, checks are cut and signed then they are distributed to the appropriate businesses. Additionally, mortgages and rental tax are handled by accounting. We prep all documentation and make sure that these bills are paid on time every month to avoid costly fines. Nobody likes a late fee from their mortgage company or penalties from the Department of Revenue!

Reflecting upon what accounting has brought to the industry, I can’t imagine anything in my Outlook calendar that does not have some kind of impact on property management. The tasks we handle every single day matter in some way; small or large. From making sure there is enough money to pay utility bills to avoiding a sizable penalty by sending a mortgage payment overnight – all of these things are an essential part of accounting within management. We take part in making certain a property can truly be a property, which is the biggest goal of all here at GPE.

- Lisa Foor, Property Accountant