Final modified on January third, 2023
By Brittany Benz
Property administration is a fancy enterprise, which suggests submitting taxes may be difficult. Add outdated processes or paper data into the combination and it might value your online business in the long term, too.
Whereas many property administration organizations dread tax season, submitting doesn’t need to be hectic when you’ve gotten the precise processes and expertise options in place. As Steven Morgan, Group Product Supervisor at AppFolio, explains:
“Annually property managers should navigate tax season — re-familiarizing themselves with processes and addressing new necessities. Having the precise expertise can go a good distance in the direction of offering peace of thoughts that groups are adhering to necessities throughout annual tax season and might get their work completed on time.”
In different phrases, utilizing the precise expertise and having streamlined workflows in place earlier than it’s time to file is essential. It could additionally scale back your legal responsibility within the occasion of an audit.
Maintain studying for useful methods to make this tax season simpler than ever by bettering processes and leveraging good options. Please take into account that whereas this text comprises useful info, we aren’t offering authorized recommendation. At all times seek the advice of a certified tax legal professional about submitting taxes in your particular person enterprise.
Tax season tip #1: Consolidate and centralize your information
Disconnected accounting techniques and disparate information not solely require quite a lot of guide work to gather, but in addition go away room for human error. As a substitute, having all the things in a single system means that you can entry correct information rapidly and effectively, so that you don’t need to spend time searching down recordsdata and manually re-checking info.
Tax season tip #2: Set up recordsdata for quicker, simpler processing
With a digital property administration system, it’s even simpler to collect your essential recordsdata and backup documentation. That’s as a result of the precise software program can mechanically retailer and replace your recordsdata year-round, from vital tax paperwork to vendor info, so you’ve gotten all the things at your fingertips when tax season arrives. As an added bonus, there’s additionally no have to find bodily paperwork or decipher handwriting with a property administration software program.
Nonetheless, in case you are nonetheless utilizing a paper-based system, begin gathering and organizing all tax submitting paperwork as quickly as potential. Make sure to permit extra time than you suppose you might have to keep away from a last-minute crunch.
Tax season tip #3: Use automation and analytics to identify anomalies
Moreover storing information in a single place and retaining recordsdata organized, a complete property administration platform may also help detect inconsistencies — like an incorrect ZIP code or an additional digit in a Social Safety quantity — that would end in penalty charges or an surprising audit. With custom-made reporting instruments and built-in analytics, you may guarantee your information is each correct and full.
Tax season tip #4: Maintain 1099s in line
Most property managers should subject and file 1099s by January 31, with proprietor 1099s due by February 28 if submitting by paper or March 31 if submitting electronically.
This course of can simply fall by the cracks for those who’re not cautious, however property administration software program is usually a big time-saver. The precise software program may even enable you ship 1099s to homeowners on time and file electronically as a substitute of by mail.
Need extra methods to streamline your 1099s? Try our article 5 Tricks to Put together for Finish-of-12 months Reporting and 1099s.
Tax season tip #5: Free your workforce to deal with high-value work
Managing tax season is usually a time-consuming process that distracts from different important enterprise duties. Manually getting into information may be tedious and result in errors, rework, and potential submitting penalties. Nonetheless, with an important software program system in place, your workforce can deal with higher-level choices like staying updated on the newest tax legal guidelines and researching potential deductions that would save your online business extra cash.
Get much more tax season ideas
Taxes are an inevitable a part of proudly owning a property administration enterprise. However when your whole information and documentation are rapidly accessible, organized, and correct, tax season turns into considerably simpler and far much less hectic.
The following tips are simply the beginning. Set your self up for much more tax season success by downloading our information, Enhance Your Accounting Operations: Save Time and Keep away from Threat. Right here’s to getting an important return!