Marc Trup outlines the reasons behind the emergence of ‘proptech’ property management systems that combine with accounting platforms to streamline accountants' workflows.
Managing accounts for property owners and managers can be a difficult task, especially with amateur landlords that often put the wrong thing in the wrong account. However, there are now several options for property management systems integrating into accounting software, all pushing to be the best. These integrations allow accountants to view and update a clients’ financials in real time, whilst ensuring that the clients’ data is going into the correct bank account.
If you have ever done the accounting for someone that manages property, you’ll know how complex it is. We always recommend that a manager gets an accountant. Firstly, because there are a lot of different moving parts and if an owner falls behind on rent reconciliation, soon it can become impossible to tell when a tenant is late with their payments.
Secondly, because otherwise they may fall foul of some of the pitfalls within the tax legislation that surrounds property. For example, the new fad of transferring your property assets into a company seems like a good idea. However, due to the change where you receive tax relief, most small-scale property owners will end up worse off. By convincing a client to use property management software that integrates with accounting software, automation can begin to rule their life and make your life easier.
The internet of things means that a lot of different software can be connected, offering the most complete workflow possible. Integrations are available with platforms offering everything from digital signatures with tools like Signable to reconciling and collecting rent via accounting packages.
By integrating property management software with accounting systems, an accountant can have access to real-time data whenever and wherever they are. Any accounting system worth its salt will have live bank feeds, meaning payments and analysis have never been easier. Accountants can offer next-level service to their clients, removing double entry and giving complete transparency.
Furthermore, accountants can manage multiple accounts and multiple clients from one login. This saves time on a daily basis, quickly switching between accounts to reconcile payments or pay a landlord.
The instant passing of data between multiple systems means that an accountant can give sound advice to their clients based on the most recent data available. Both accounting software, such as Xero and QuickBooks, and property management software such as ours (Arthur Online) and Re-Leased, offer powerful reporting tools, too.
In a business driven by analysis, forecasting and attention to detail, this is a key feature that improves the way individuals work. These accounting packages instantly show all expenses, payments, receipts and invoices and run reports showing this information.
Having control via proptech technology that offers an end-to-end solution is essential when managing any size portfolio and organising the accounts to sort any business type.
About Marc Trup
Marc Trup is the Founder and CEO of Arthur
Marc fell into the property sector after selling his first business in 1998 to BUPA healthcare. Focusing on residential property, he built up a portfolio in and around the London area, starting off with a small block of flats. Over the following 15 years Marc grew his portfolio to manage over 85 properties. He wanted a system that allowed him to manage the portfolio from his iPhone, while drinking his espresso at the local coffee shop. Having searched online to find an app to help him do just that, he realised that it simply didn’t exist. So, he founded Arthur to make not only his life easier but that of other property managers. Arthur is a cloud-based platform that enables property managers to respond instantly and solve problems fast – be it with tenants, contractors, property owners or letting agents.