|Why You Shouldn’t Use Excel As Accounting SoftwarePosted: 19 Feb 2014 10:28 AM PST
First, let me confess that I love Excel. Having used Excel for years, I’m fully aware of its strengths, and will continue to use it to create spreadsheets, graphs, and tables. But for some unknown reason, there is a small group of property managers that continue to extol the benefits of using Excel as their primary accounting software.
I have to admit that this has me stumped. The accounting software of today in no way resembles the awkward software of yesterday. Today, most software products are designed with the end-user in mind, and include easy system navigation, intuitive data entry screens, and system tutorials to make it easy to learn your way around the system.
If you’re using Excel to run your property management business, you may want to consider the following:
Excel’s Primary Functionality is NOT Accounting – Excel’s primary function is creating spreadsheets, not processing transactions, or producing financial statements. Yes, it can be used for those things, but typically with accounting software; not in place of it. As a result, users will spend an inordinate number of hours entering Excel data manually, because it does not have the capability to share data. So anytime your tenant pays rent, you’ll be posting that payment in your checkbook, your accounts receivable journal, and your tenant record. With regular accounting software, you post it once.
Propensity for Errors Increases – The lack of a central database and no double entry accounting system in Excel also means a lot more repetitive data entry. And each time you have to re-enter the same data, the likelihood of making an error increases dramatically. Also consider that without the safeguard of a double entry accounting system, it’s very easy to end up with out of balance accounts.
Lack of a Reliable Audit Trail – Accounting software has become valuable to business owners because of the ability to ensure that data is accurate and secure. Excel offers no such protection; meaning that formulas can be changed, entries accidentally (or purposely) deleted, and transactions erased, all without leaving a trace of the original entry behind.
Ease of Use – or Lack Thereof – While it’s fairly simple to create spreadsheets in Excel, making it a functioning accounting program requires another level of skill that most Excel users will never attain. Creating an invoice, printing a statement, or processing a financial statement in Excel can take up valuable time, while accounting software allows you to create those items in minutes.
While Excel will continue to provide a valuable benefit to property managers, it can provide many more benefits and less headaches by using it for what it was designed to be.
Posted: 17 Jan 2014 10:03 AM PST
Zillow, Inc. has partnered with AOL Real Estate and is now powering the site’s home shopping experience. Zillow is now the exclusive provider of for-sale and for-rent listings to four of the top real estate websites in the country.
“We’re very excited to announce this partnership with AOL Real Estate,” said Zillow CEO Spencer Rascoff. “Both Zillow and AOL Real Estate serve consumers with great content and information about homes, so this made perfect sense.”
Negative Cash Flow Got You Down
Are you tied of receiving monthly reports with negative cash flow from your Property Management Company?
- Maybe they are part of the problem.
- Do they just sit back and deduct their fees from your rental income?
- Are they proactive with helping you turn your portfolio around or are they happy to sit back and receive checks from section 8 and DSS?
- Are you constantly getting negative reports for C of O or city inspections?
If this sounds like you, Maybe you should give Kendrick Property Management a call.
Kendrick Property Management has evolved from Team Kendrick, we are general contractors, rehabbers, and Real Estate Investors ourselves.
We work with our clients to determine what is the best direction to pursue for them to achieve their investment goals.
- We will evaluate their portfolio to see what course of action to take to turn their negative cash flow properties into positive cash flow. If liquidating them is the answer then we can help them move them off their books thru are rent to own network. In most cases they can receive positive cash flow while eliminating the overhead. With out selling them at wholesale prices for a big loss.
- If updating the properties and placing new tenants in them is the answer then we can put our rehab team to work getting them ready for re-rental.
- Once all the negative problems have been solved we will help our clients start building a higher quality portfolio.
- Since we buy and sell properties ourselves we have wholesalers sending us properties to look at on a daily basis. We check them out and then give the information to our clients that are looking for more properties.
If you are just getting started in rental investments contact Kendrick Property Management and let us help you get started on the right path to profitable rental investing.