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Avoid Accounting Errors by Hiring a Coos Bay Property Management Company

Avoid Accounting Errors by Hiring a Coos Bay Property Management Company

Property managers in Coos Bay provide a number of services for rental property owners, tenants, and the community in general. In addition to our plans and programs that cover leasing, management, and maintenance, we also provide financial support, bookkeeping, and investment advice. There’s always expertise to leverage, and if you’re not already working with a professional Coos Bay property management team, it’s probably time to consider it. 

Today, we’re looking specifically at how property managers like us can help you avoid accounting errors. Accurate and detailed financial reporting is an important way to understand the health and profitability of your Coos Bay investment property. Good accounting also keeps you in compliance with IRS filing requirements. 

Allowing a property manager to keep careful track of your finances is the best way to avoid accounting errors. A simple mistake can change your entire financial picture and lead you into some questionable decisions. 

We manage financial reports and accounting statements for property owners and investors across this part of Oregon, and we can tell you that good technology and expert accounting help are the best tools to protect yourself and your investments

Technology helps us organize, streamline, and automate many of your accounting practices and financial reports. We provide more transparency, better accuracy, and a lot of detail thanks to our tech platforms.

Here’s a look at what we can do for you, and why it’s so important.  

Leverage Coos Bay Property Management Accounting Systems

Most Coos Bay property management companies have experienced staff members with specific experience in accounting and bookkeeping. Access to these professionals can provide peace of mind and prevent common errors that are easy for independent landlords to make when they’re struggling to put together their own income statements and balance sheets.  

This area of accounting specialization within your property management company can help you stay in compliance with generally accepted accounting principles. It will help your financial records remain clear, easy to read, and accurate. 

Professionals working in accounting understand how to help property owners and investors like you achieve their financial goals. You’ll know whether you have a profitable investment property or one that’s rapidly losing money. 

Experience matters, and if you personally are lacking in accounting expertise, you could run into problems when it comes to balancing the books or forecasting your future earnings. But, you will find that you already have effective systems in place when you partner with a property manager in Coos Bay. You won’t have to set up your own accounting files or try to figure out how to put together an online ledger. Everything will be in place already, and there’s not much you’ll have to do. You won’t even have to worry about how to collect rent, because we’ll do it online.

Property Management and Accounting Technology

Most of the property management technology we use is integrated with our accounting software, and that keeps everything transparent and accurate. If you do not have a tech-driven and automated system in place for yourself, working with a company that does have such systems can save you a lot of time, money, and frustration. 

Accounting and property management software is often cost-prohibitive for most rental property owners to buy for only themselves. 

Outsourcing the accounting work to your property managers can ensure you’re getting access to the best technology that’s available. The tools we can provide our owners provide more efficiency, better documentation, and extra transparency. You can expect to solve complex problems quickly and easily. Resources such as online rent payments will lead to on-time collections. You won’t have to wait for a paper check to arrive every month; your rent will be deposited right into your account via ACH transfer.  

Our accounting technology also provides an extra layer of online safety. You can expect strict safeguards and confidentiality as well as controlled access and backup. We can protect your finances from fraud and hackers. We remain compliant with document storage and laws like the Fair Credit Reporting Act. Working with a property manager will bring you that extra peace of mind because security protocols are part of every system we use.

Avoid Tax Mistakes with Property Management Help

Missing a tax deadline or filing date is not likely to bode well for your investment portfolio or your finances. If you’ve had to file for extensions but you’re still not sure you can pull together the documents you need, it’s going to add stress to your life. You don’t need the risk of late or incorrect statements, reports, and tax filings. 

More importantly, you don’t want to leave tax savings on the table. A common mistake we see rental property owners make is the mistake of not taking advantage of all the tax benefits that are available to them. 

When you rent out property in Coos Bay, you’re required to include all the rental income you earn on your tax forms. That’s taxable income. But, you can also take a number of deductions that pertain to your rental property. These include:

  • Maintenance costs. When you pay for labor, materials, and supplies to make repairs to your investment property, you can deduct those costs as losses on your taxes. 

  • Mortgage interest. When you’re paying interest on the loan you used to acquire your investment property, that interest is tax deductible. 

  • Professional fees. Working with a property manager to help with your accounting as well as the leasing, management, and maintenance of your rental property will result in a monthly management fee. It’s completely tax-deductible. So are other professional fees such as the commissions you might pay to real estate agents when your property is being leased or the attorney fees you pay during an eviction.

  • Depreciation. The IRS allows you to write off the depreciation of your rental property.

Hire Property ManagerThis is another good reason to hire a professional Coos Bay property management team to handle your property’s books. You need accurate work that’s done on time. Late payment fees and penalties are going to hurt your cash reserves and keep you playing catch-up, which isn’t good for you or your investment outcomes. 

Ready to get some accounting help in addition to property management help? We’re your team. Please contact us at Oregon Bay Properties.