Real Estate Accounting Software Buyers Guide
Last updated: June 07, 2023
When you think of real estate, your first thought might be associated with viewing different amazing properties. Sure, it sounds simple enough but many aspects go into keeping your real estate business afloat. And that includes the accounting aspect.
If you expect to remain in business, then staying on top of your finances, be it daily operational expenses or tax compliance, is crucial. This is why incorporating the best real estate accounting software is paramount. How else will you keep your company’s finances in check?
Given the high number of real estate accounting software on the market, picking the right one for your firm can be tricky. How will you know if it’s the right fit? We’re here to ensure that your selection process goes smoothly by outlining all you need to know regarding real estate accounting software.
Benefits of Real Estate Accounting Software
Before we go any further, we’ll start by listing the benefits of including real estate accounting software in your firm:
- Improved operational efficiency
- Keep track of your finances
- Gives you more time to concentrate on selling homes
- Allows you to track and manage properties online
- Allows you to separate your personal expenses from the real estate financial affairs
What Factors Must You Consider Before Picking Real Estate Accounting Software?
Ease of Use
By incorporating real estate accounting software in your company, the goal is to make work easier. The last thing you need is to employ a complex system that you and your staff will find difficult to use. Software that provides a huge learning curve—even after your staff members have been well trained—is not ideal.
Look for software that’s simple enough to operate without constantly needing to refer to instruction guides or calling your vendor.
Speaking of vendors, you want to pick software from professional vendors who are readily available. First off, the vendors must provide your staff with adequate training. Secondly, they must offer round-the-clock support when needed.
Minimal System Downtime
It would be unrealistic to expect software to experience zero system downtime. While such incidences are inevitable, it’s the duration—and frequency—of downtime that becomes a cause for concern.
Make sure the software your pick has a reputation of minimal system downtime. Read reviews about the service provider: will they attend to it swiftly so that your system is up and running in no time?
Accessible from Anywhere
Gone are the days when people had to conduct business while confined in one physical location. Mobile offices are prevalent in today’s digital era—especially in the real estate sector. What happens when you’re out of the office? Does this mean you’ll miss out on your company’s important financial aspects and customer queries?
Pick software that ensures you’re connected wherever you are. This way you can still run your business from anywhere. Such software usually has apps that you can download onto your mobile phone for convenient access.
Keeps You in Touch with Other Parties
Still, on the subject of accessibility, your financial affairs aren’t the only aspect you need to access regardless of your location. You need software that allows you to be connected to other crucial parties in your firm. Here we’re talking about your bookkeeper, accountant or even other staff members.
You want to be able to liaise and collaborate with other parties from anywhere—in real time. Pick software that allows multiple users to easily access the relevant information
The real estate accounting software you pick must not only make things easy for you but your customers too. Look for one that has customer friendly features to also make life easy for them. This can include features that allow customers to make payments with ease.
Employing a system that frustrates your clients is pretty risky. They’ll simply turn to companies that offer them convenience.
How Much Does it Cost?
Regardless of how impressive the features on the software are, you can’t disregard the cost. More than anything else, your budget is probably the biggest factor that determines the software you pick. But before settling for the cheapest software on the market, first consider if it has the features you need.
Most vendors have several packages that cost different amounts depending on the functionalities. Some even offer a free version which may be ideal if you’re starting up and you’re limited on finances. But the trade-off is that free version packages usually have limited features.
You can always upgrade to the paid version when your company is financially stable. In this case, most payments are done in the form of monthly or annual subscriptions.
But before committing to any software and signing on the dotted line, take full advantage of the free trial period offered by most vendors. This way you get a free trial run of how the software works to determine whether it’s the right fit for your company.
What Features Must You Look For?
The above factors generally refer to standard real estate accounting software. But the truth is not every company operates the same. That’s why the software isn’t one-size-fits-all. Each comes with different features and templates. The trick is to find one that matches your company's needs.
But regardless of the one you pick, make sure it can at least perform the following functions:
- Track security deposits
- Depreciate property
- Track cash inflow and outflow
- Provide detailed and customized reporting on financial information
- Track sales listing and broker fees
- Track commission received
- Track vehicles as well as their mileage
- Connect company bank accounts
- Scan receipts using your mobile device
- Accept payments online
We’re certain after reading this article, you’re now able to make an informed decision regarding which real estate accounting package to buy. Leave a comment below if you have any questions or thoughts to share.