In the world of financial management, all costs that are deemed unnecessary for the company’s operations need to be cut. As much as possible, track all costs that do not effectively help the company’s operations. Because you have to take full advantage of the revenue streams that come from the rental property, of course, the data you need to realize these things is in one component of the Financial Report, namely the Profit and Loss Statement and Cash Flow. When the task is done correctly, the potential income of your property company will be maximized. Aside from that, if your business requires some help in bookkeeping, we recommend you hire the best bookkeeping services near your company.
Here are some of the types of financial statements that your property manager must provide each month:
Balance Sheet Report (Financial Position Report)
Financial Reports that must be prepared by a Property Company Manager This is a form of a report that contains a summary of assets, liabilities and owner’s equity. At a glance, you will see the cash balance, the amount of property investment that is either completed or still in the process of development, held a security deposit, the amount of debt from the Financial Lease, income from customer deposits, and more.
This report must have details of the total monthly income and expenses. Then compare it with the Budget Report that you made to see the financial performance of your property company. When created and used correctly, the Budget Report is a guideline for the operation of your assets. You should expect the performance of the property company Profit and Loss Report in accordance with the Budget Report. Comparing the actual numbers of the Income Statement with the numbers in the Budget Report will help you achieve your property company’s financial goals.
Ledgers provide detailed information on each account transaction that results in the total amount reflected in the Balance Sheet and Income Statement. Each entry must be entered completely and clearly. Ask your manager if you see many corrections in various accounts in the Ledger each month or.