Overcoming Accounting Challenges With Property Management Experts

In the fast-paced real estate industry, efficient and accurate accounting is crucial for property management companies. This article features insights from two AppFolio Stack™ Solution Partners, Proper AI and Eng Flanders Group, on streamlining accounting workflows using technology.

(Disclaimer: This article contains helpful information but is not providing legal advice.)

Challenges in Property Management Accounting

We asked Proper AI to detail common complexities and challenges businesses face in accounting:

• Overdue Bookkeeping and Limited Accounting Technologies

  • Main Issues Reported: Overdue bookkeeping ("back books") and insufficient accounting software are the top challenges.

  • Common Pains: Lack of accounting/software expertise, difficulty staying current with industry trends, hindrances to growth, high volumes, and slim profit margins.

  • Proper AI notes that 50% of their clients come to them with back books.

• Maintaining Accounting Processes at Scale

  • Mixed Portfolios: Diverse revenue streams, complex expense structures, lease variability, and valuation make mixed portfolios challenging.

  • Growth Complications: Complexity increases with unit count, requiring skilled talent to manage larger volumes of financial data.

  • Advanced Reporting: As companies scale and engage investment banks/hedge funds, the need for advanced reports becomes critical, often requiring more accounting sophistication than smaller companies possess.

Overcoming Accounting Challenges

To solve these complexities, experts suggest two key components: a specialized partner and solid technology.

Partnering for Specialized Support (Proper AI):

Proper AI acts as a strategic growth partner by:

• Offloading accounting to a dedicated team of specialists.

• Utilizing proprietary automation to standardize tasks and enhance efficiency.

• Streamlining operations from basic accounting to intricate financial reporting.

• Specializing in mixed-use, residential, multifamily, student housing, and HOA properties.

• Proper AI helps businesses free up teams from tedious data entry and gain a better financial picture.
  

The Role of Accounting Technology (Eng Flanders Group):

Accounting technology built for property management can improve accuracy and reduce errors:

• Audit Readiness: Good software includes controls that ensure data integrity and minimize out-of-compliance entries.

• Validation: Enables running internal reports to validate compliance and external reports to easily provide information in the format required by an auditor.

What to Look for in Property Management Accounting Technology

Eng Flanders Group shares insights on selecting the right software:

Level Up with Solution Partners

AppFolio customers can work with a network of trusted Solution Partners for specialized solutions and support:

• Eng Flanders Group (Outsourced Accounting & Consulting)

  • Provides outsourced accounting services for the entire accounting cycle or specific processes.

  • Offers a full-service consulting team specializing in software implementation and onboarding.

  • Provides remote training, assistance with onboarding new properties/portfolios, troubleshooting data/accounting issues, and financial reviews.
    
    

• Proper AI (Efficiency & Profitability)

  • Manages the books while clients focus on scaling their unit counts.

  • Combines dedicated teams of AppFolio-savvy accountants with automation specifically for AppFolio.

  • Clients spend 30% less on accounting and gain peace of mind to focus on core business and growth.

To uncover our full list of partners, visit our website.

Ready to Optimize and Streamline Your Accounting?

Property management accounting demands precision and the right tools. Technology, with the help of Solution Partners like Proper AI and Eng Flanders Group, is a game-changer for:

• Automating routine tasks

• Providing real-time financial data

• Enhancing efficiency and accuracy