Owning real estate is all fun and games until it's time for tax season. Filing taxes is difficult, especially if you don't do your due diligence beforehand.
Get everything ready for tax season and ensure you receive your income each month. How can you do this as a Boston, Massachusetts landlord? You need to focus on your rental property accounting.
A property manager can walk you through the process, but these tips can also help you get started. Read on to learn more.
Sign up for a Bank Account
Signing up for a business bank account and the corresponding credit card should be your first step. Rental property accounting is more efficient when your real estate funds and expenses are in one place.
All rental property expenses can be made using your credit card. Your rental property income will go into your business account.
Having a business bank account is crucial if you want to avoid mixing business with personal funds. The IRS will have to look through your personal finances if the two aren't separate and you get audited.
Use Rental Property Accounting Software
A professional rental property accountant uses accounting software, so you should, too! Software programs can eliminate tedious manual tasks that you regularly need to do.
To find the best software for your needs, consider taking advantage of various free demos. If you hire a property management company, accounting will be included in the fees you pay.
A property manager will already be familiar with accounting software. They can teach you how to use it to keep you in the loop.
If you prefer to be a hands-off landlord, they can provide monthly owner statements. You'll always have a complete view of how your property is performing.
Hire a Property Manager
As stated before, a property management company will offer various services for a fee. Many are staffed with experienced accounting professionals who will help you make the highest income possible.
Working with a property manager comes with various benefits, including staying tax-compliant. They know local Boston laws regarding owning rental properties.
Additionally, a property manager can help reduce your tax liability. They will categorize your expenses to ensure you receive your rental property tax deductions.
Property management services are also tax deductible at the end of the year. Many landlords find the cost worth it for the services provided. Especially so when tax deductions can be utilized.
Rental Property Accounting: Work With Us
Rental property accounting is essential for any real estate investor. If you want to ensure your income matches your work, hire us! At PMI Bay State, we've been helping Boston landlords like you for over 20 years.
We keep your financials in order with comprehensive financial reporting and a specialized accounting staff. We work to maximize income and minimize expenses.
Allow us to take on collecting rent, monthly owner disbursements, tax statements, and more. We will get you your money as soon as possible.
Get in touch with us today to start working with our professional staff.
