Rental property management can be a monumental task. With so many details to track and numbers to manage, how well you stay organized can be the difference between success and failure, and property management accounting software is here to help.
While it's possible to handle things like rent payments through your bank or financial statements with Excel, failing to take advantage of the tools available can increase the chance of human errors and make your business harder to grow. The right rental property management accounting software can keep your financial records accurate and organized, saving you time, money, and stress.
What Is a Property Management Accounting Software?
Property management accounting software refers to any accounting product that can accommodate rental property operations. Some products, like DoorLoop, are specially tailored toward the property management field and give users access to more specific tools. Others are more standard small business accounting options that can be used to meet a wide range of accounting needs, like Xero and QuickBooks.
How property management accounting software is used can depend on many factors, from the size of the tenant base to the number of units under management. Some property management teams will require the more comprehensive reporting available with specialty products, while more standard options may suffice for others. Personal preferences and business needs can both play a significant role in how software is used to manage rental properties.
Most accounting software products offer basic functions like creating a chart of accounts, maintaining a ledger, making journal entries, and handling accounts payable and receivable. Some level of financial reporting is standard as well, including running income and cash flow statements.
However, more specialized products like DoorLoop offer additional features that can make staying organized and on top of obligations a little easier. This includes rent collection, customizable expense tracking, check generation, and paperless document organization. Because this software isn't just an accounting platform, all necessary business information is housed together in a way that makes management – financial and otherwise – simple.
At DoorLoop, we sell specialized property management software that puts convenient solutions at your fingertips. However, that doesn't mean we're necessarily the right fit. By outlining the pros and cons of some of the other big names in the business honestly and transparently, you can arm yourself with the information you need to make the best decision for you.
Rental property management accounting software isn't one size fits all, and what works for one management company may not work for another. There are many different products on the market, from specialty options to generic small business solutions, so it's up to you to do your due diligence before making a choice. Below we have provided a list of the most prominent accounting software options, as well as their pros and cons.
DoorLoop is an all-in-one property management software that can handle company accounting and a whole lot more. It is designed to be a one-stop solution with functions that include tenant screening, lease generation, rent collection, marketing resources, and maintenance request management. Accounting services are focused on property management specifically, giving users access to tools that best align with business needs.
This software can do a lot more than just a standalone accounting solution. For those that hate using generic accounting software for managing your rental portfolio,
Those seeking the more robust features that come with more comprehensive products may find themselves limited by the rental property-specific tools. Some users may choose to use DoorLoop in conjunction with other accounting products, like QuickBooks.
QuickBooks has been an industry leader for decades, and for good reason. It is easy to use, great at keeping basic information organized, affordable, and efficient. It can work in conjunction with numerous third-party applications as well.
Read our full guide to using QuickBooks for property management accounting.
QuickBooks is a more generalized business solution, which means that it lacks some industry-specific features property managers may want from a property management accounting software. The software also has limited reporting capabilities outside of the accounting basics, which can frustrate users with specialized needs.
Xero is a robust accounting resource with easy-to-use tools and a slick reporting interface. It can accomplish most basic accounting needs, as well as things like automated rent invoices. Advanced reporting functions allow property managers access to a wide range of helpful information.
Like QuickBooks, Xero isn't specific to rental property management. The program lacks management software capabilities, like tenant screening, and doesn't offer a way to upload important documents associated with tenant accounts. Xero also makes tracking properties on both a building and unit level very challenging.
Sage is another consistent staple in the cloud-based accounting software game. The platform is more flexible than some of its competitors, allowing for access to customized reporting options. It also has more industry-specific features than the other general products, like Xero. Sage also offers a very robust range of products, making it easier to find something for everyone.
Unlike its competitors, which are better tailored to small and mid-sized businesses, Sage is designed with larger companies in mind. This means more comprehensive tools, but in a way that may be unnecessary for most small clients. Further, Sage is among the more expensive options on the market, making it a poor choice for companies on a budget.
Making the Right Choice for You
The software you choose can play a vital role in the course of business. The wrong software can hold you back, while the right software can save you time while reducing errors in reporting. Don't make a choice based on your peers – make a choice based on your needs. From the straightforward basics to a fully integrated multifaceted solution, there are plenty of options out there that can transform your approach to management.
Don’t forget to check out our ultimate guide to property management accounting which covers terms, tips, and the best accounting programs for rental properties.
Have questions? We have answers. Get in touch with us today to learn more about how DoorLoop makes property management easy and manageable.