Category: Uncategorized

What Bookkeepers Want Small Business Owners to Know

Being a bookkeeper is not a glamorous job. There are no fancy products to really showcase the value the service brings to all business industries. Part of my job as a bookkeeper is to educate my clients on the key reasons why professional bookkeeping is so crucial to the overall success of their business. Below are 6 of these reasons. 1. Accurate and organized financial data is NECESSARY. As a business owner, it is your job to keep financial accurate and organized financial records. Those records can tell you how well the business is doing, where the money is coming from, and where it is going. Aside from the obvious, it can help you should there be an audit. Being able to clearly explain any transaction at any given time can potentially save you tens of thousands of dollars. 2. Proper categorization of the Income and Expenses. For tax purposes this is particularly important because getting it wrong can mean an audit, over or understated income and expenses, missed deductions, and overpayment or underpayment of tax liabilities. 3. Timely reporting of sales and payroll tax. As a business owner, there are several tax reporting agencies that require timely filing and

How to Avoid Communication Pitfalls in Your Property Management Company While scrolling through Facebook this afternoon, I came across an interesting question in a Property Management group I am in. It asked “What do you feel is the number one service lacking in Property Management?” My answer was communication along with several others responding in similar fashion. I want to elaborate further on my answer. I felt there was a breakdown in communication as it pertains to the responsibilities of the owner and those of the property manager. Who is doing what? What does an owner need to provide to the PM in order for the PM to do his or her job more effectively? What does he PM need to provide to the Owner to give peace of mind to the Owner that the PM is doing the job as promised? Aside from rent, what other deliverables is the PM handing the Owner? Are they timely? These are just the few of the questions a PM firm can ask Owners and vice versa. Another side of the communication coin is that of PMs to their maintenance staff. This was another issue brought up in response to the question above. Finding good maintenance staff is a wonderful addition to

QuickBooks for Property Management – Security Deposits

Security deposits are paid by the tenant to the landlord. It is meant to cover any damages done to the property by the tenant beyond normal wear and tear. As landlords, I am sure this is not news to you. What may be news to you is how to handle these payments in QuickBooks. I am going to share the method I recommend because of its ease of use. When receiving a security deposit from a tenant, I treat it as a credit to the tenant. I do this because it allows me to see, at any given time, how much their deposit is and it makes it easier to discern how much of it needs to be returned to the tenant after any charges have been accessed. To use this method, Tenant CANNOT be set up as jobs under a property address. They MUST be set up as a customer. Under these conditions, tenant security deposits are handled with the following steps: Receive the payment – There should be no invoice to apply it to. Deposit the payment – Tenant Security Deposits SHOULD have their own bank accounts. Some states require this. I think it is just good practice

Employee Onboarding

Just like with new clients, you must onboard your new employees as well. Reading a job description and explaining the job duties to the new employee is not always efficient in acclimating the new hire. Aside from explaining the duties and assigning them a work area, there are quite a few things that can be done to ease the transition for your new team member. 1. Walk them through accessing their company email. – I know it sounds trivial but this can be so frustrating some times. Walking him or her through this step will help ease some of the nervousness from their minds. 2. Sit with them and give them a short tutorial on any software you use to run your business. – Most people are not up on the latest software or applications so learning a new program is stressful! Trying to navigate it alone!? YIKES! Giving your new hire a hands on tutorial shows them that you understand that learning a new program is difficult and that you value their presence. Yes, I know you can point them to YouTube but your sitting down with them will go a long way to instilling loyalty and a sense

Leases: Why They are Important

I am sure this is common place but believe it or not there are still landlords operating without a lease agreement. What is a lease agreement? A lease agreement is a document that outlines who is living in the rental unit, how much the rent is, when it is due, and the rules regarding the use of the unit. In addition, the lease agreement details what the deposit is, what utilities will be paid by the owner and the renter, how to send maintenance requests, and how to give notice when moving before the lease is up. This document is important because it lets the tenant know what to expect, how they are to maintain the property, and what happens if the rent is late. It serves as a layer of protection for both the tenant and the owner. Aside from telling the tenant how he or she must behave while occupying the unit, it details how the landlord is to behave while the tenant is in occupancy. The landlord is to provide the tenant with notice 24 hours prior to entering the unit for non-emergencies, how to handle the security deposit after the lease has ended or tenant has