Rental business can be difficult in terms of calculating profit margins but Meru accounting
India’s leading bookkeeping and consultant firm makes it easier for you. We track your rental property or business regularly and manage them on your behalf effectively.
- Profit Margins in rental business can be quite challenging whether it is a machine rental business or a property rental business.
- Rental business can be a highly profitable business given if the capital cost is adequately amortized against the receipts.
- We at Meru accounting provide reporting for a rental business to help you analyze revenue per working hour of machine.
- We at Meru Accounting can help you plan and budget your revenue based on various inputs and can help you know whether the machine can be worth investing for your rental business.
Tracking of Income per property.
Income should be tracked per property based on class tracking for Real Estate.
It is advisable that a separate bank account should be maintained per property so that the expenses are easily allocated to that property.
Regular updating of books of accounts
It is advisable to update books of accounts every fortnight so that receivables can be tracked and chased in a timely manner.
Recurring invoices should be set up so that the invoices are automatically created in the accounting system and are matched with the receipts.
Tracking of Expenses via Property
- Expenses should be tracked via property for each of the property.
- General expenses which cannot be allocated specifically to a property should be assigned on either of the proportion of income, the area occupied or any other scientific basis
Features that should be looked into while selecting an accounting software
- Ability to manage Apartment,apartments, commercial properties, condominiums, cooperatives, homeowner associations, residential properties etc.
- Ability to operate on Cloud environment
- Collect rents online
- Automatic invoicing
- Listing management
- Alerts for software
- Expense management
- Vacancy Tracking
- Maintenance task