Smart accounting leads to better investment experiences. When you’re renting out an Oshawa investment property, it’s easy to collect random receipts and invoices without keeping them organized, but that’s detrimental to your earnings. When you want to maximize your return on investment, you need to invest in an accounting system that will help you track income and expenses as well as plan for future expenditures.
With the right financial reporting, you can make smart investment decisions that will help you earn more and spend less on a single property or an entire portfolio.
Property managers have a fiduciary duty to provide accurate and detailed financial statements and accounting reports that are timely and easy to read. As you may know, reputable and reliable accounting is only one of the benefits of working with a professional Oshawa property management company.
Make sure you have good records and a clear understanding of the tax requirements. We also recommend you invest in automated accounting technology. A dedicated and focused accounting software can help you earn more ROI.
Oshawa Property Management and Accounting
Landlords and investors trust property managers with their rental home and sometimes with an entire portfolio of rental homes. Not only does your management company have access to your investments, we also have access to your personal financial information, including bank accounts.
When you choose an Oshawa property management company, make sure you’re working with a team of experienced professionals who take their bookkeeping duties seriously.
Providing information that is inaccurate or incomplete does not inspire a lot of confidence. One mistake every now and then is understandable. But if the accounting statements you receive every month have more errors than accuracies, you need to get to the bottom of what’s going on. Look for transparency and an online portal where you can follow what’s happening with your rental income and expenses.
Tax Accounting for Oshawa Rental Homes
As a property owner, you’ll collect rent in cash, cheque, or email money transfer. You need to track that income and separate it by property and by date. This information will be crucial in your tax reporting. When it’s time to file, you will need to record the amounts that your tenant has paid you the “Gross rents” column on the Form T776 – Statement of Real Estate Rentals.
Tax mistakes can be expensive, so make sure you completely understand the required forms and the filing requirements. If you’re confused about the compliance that’s required, work with a tax professional who can help you gather your necessary documentation and file when it’s time.
Accounting and Communication
When you’re managing your own rental property, a simple Excel document might seem easy enough. But, you could be missing out on important trends and patterns when you’re not working with better software. If you’re not able to invest yourself, work with a professional property manager who already has these systems in place. The communication will be accurate, detailed, and transparent.
An Oshawa property manager can provide financial information that reflects the performance of your investments. You’ll be able to make adjustments as needed to increase your ROI and reduce your expenses. The decisions you have to make will depend on having access to good information, and you should never settle for anything less.
We have a lot of experience managing investment properties in Oshawa and throughout Whitby, Ajax, Pickering, Courtois, Bowmanville, New Castle, and surrounding areas. If you’d like some help with your accounting and bookkeeping, please contact us at Investor’s Choice Property Management