Growing a real estate portfolio is exciting though it can be a rollercoaster most of the time. Many financial tasks can just slip off our radar and suddenly we get a nasty surprise from an accountant because the idea of expense notes on a napkin is no longer good enough.

But here’s the good news: with the right financial weapons the growth of the property portfolio can be as steady as the keeping of ones finances.

Most people who construct their rental portfolio are chasing the dream of financial independence. Okay, let’s discuss portfolio expansion… without banking on emptying your pocket. Because let’s be real: It therefore goes without question that what may sound like; owning many assets such as twelve house properties for instance, is irrelevant and near useless if the company’s financial status is as bad as a sinking ship.

Hint: Relying on obsolete spreadsheets in undertaking isn’t going to be an elixir for here. This is where there is great need for leads generated by specialized software used by investors in the real estate industry.

It Says Here: Staying Focused on the End Goal

One common thing that one can observe is losing track of the next big thing when scaling up is easy to do. Perhaps you’ve even gotten to the stage where you seem to have deals find you (or almost). But in the early days of my investing, I handled the bookkeeping through QuickBooks thinking I could handle everything. Even when my CPA went through my papers, I realized that there were many problems indeed—problems that increased my expenses. This I too realized early enough, that it entails a good bookkeeper to be more than just meticulous especially in real estate business, thus I did not regret it.

Let’s face it: To a large extent, managing costs, rents, mortgages, and maintenance is a challenge. Unless you are going to spend your nights and days going through number statements you need a financial solution that works as hard as you do. There is software which can simplify tracking of expenses, preparation of taxes thus saving you on time, which is one of the most important factors. You could liken it to have a financial assistant similar to the movies, where you don’t have to endure the dull conversation.

Wave Goodbye to Getting Bills You Never Expected

How often do you get financially caught with your pants down?

You’re not alone. Other expenses can be far worse than a leaking roof, they may lurk in your bill statements and then jump at you, all ready for war. Traditional software for the real estate sector can track every expense in detail and provide immediate reports on every expenditure. With automated tracking, there is no need to be confused about why one’s finances appear to be chaotic confusions of receipts.

No more stacked up filing cabinets full of invoices, and filing cabinets that are practically bursting with files. Organized financial also help during tax season and are helpful when explaining to lenders.

What to look for when selecting Financial Software?

It is in these areas that partners such as Baselane are useful. They offer a perfect money management, accounting, and rent management service specifically designed for the client who is a real estate investor. Some essential features include:

• Streamlined Financial Management: Make your operations easier by using applications that combine operations including banking, accounting, and rent management. By centralizing the dashboard, you’ll be able to oversee multiple properties, manage income and expense in an automated fashion, and get customized, real-time portfolio insights.
• Automated Accounting & Reporting: A highly efficient and all-encompassing accounting solution is one of the most important tools for renting finances management. For example, Baselane ensures the matching/eg lis, flow and real estate tax compliance and record keeping with over 120 expense classifications. It also provides an advantage for the investors to prepare the reports correctly to avoiding massive mistakes especially during the tax season.
• Tax Prep & Deduction Tracking: It means that a well-developed system should allow a person to monitor his/her deductions and, in general, prepare for a taxation. Now with Baselane, you can also generate the Schedule E reporting plus property income statement and tax packages for each property. For the investor it means that they can track all possible expenses such as depreciation and maintenance to have it ready when filing taxes.

The Benefits to be Deriving from Automation of Financials

Consider a situation where you are not working out the return on investment figures mentally or hunting for knowing which property is not charging enough rent. But your software does this for you –it’s one of the many benefits of using such software. It won’t turn you into a millionaire overnight, but it has the potential to save your time, money and energy. If you are to scale your business, yet you do not have proper handle on your finances, then it is like driving a car with a blindfold, you will eventually get to a destination, but you do not know where it is.

It will also save time come time to do your taxes as you’ll be with your loved ones instead of sifting through receipts.