When it comes to property management software, having robust accounting functionality is truly a must. That’s why, here at Streamline, we offer three different types of accounting to keep you in trust, all according to your need and expectation. All three are unique and cater to your specific needs, while aiding in keeping you in trust.
One of the most critical components of a property management software system is the capability to provide trust accounting. When dealing with trust accounting, you have to look beyond the wording on websites. “We offer trust accounting” – this is a claim almost everyone makes. And yet, every state can have unique definitions of what they consider to be trust accounting – some of which have almost no specific regulations. Though that does not imply that you should not run your system without the concept of trust accounting, it does mean that doing your research is a very important part of determining what your state’s trust accounting rules may be. After all, you do not want to be audited and have your business shut down for operating out of trust, and there are no.
While software systems can attempt to keep your accounting in trust, if you choose to start using money that is in trust against the rules within your state, there is not a software system out there that can audit your activity based on the rules in your state. To give you one example, in Arizona, long-term rentals have a very unique policy. In the most common definition of trust accounting, you are allowed to pay bills on behalf of the owners using the trust account. The state of Arizona takes this a bit further for long-term rentals. You CANNOT pay a bill for an owner who does not have the funds in their account to pay for that bill. If you are caught doing this, you are considered to be operating outside of trust and you can be shut down. Just do your extra research and operate within the guidelines of your state. Everything will be fine.
We also offer a variety of revenue recognition rules. While this does not necessarily fall into trust accounting, when it is time to be audited, you will most definitely need to explain when you recognize revenue. When we recognize revenue, the money is in trust to the OWNER. Be very careful. At revenue recognition, the money does not belong to the property management company! We offer:
Commission Based Accounting – With commission based accounting, you can learn exactly what you’ve made at the end of the day – all with no hassle. With profit and loss statements, balance sheets, and everything else you need to make commission based accounting possible, this is one of the most powerful tools that Streamline has to offer.
Here at Streamline, we understand that accounting is one of the most important parts of running a property management business. That’s why we offer the most robust and customizable suite of trust accounting functionalities in the business! For more information, call Streamline today; we can’t wait to hear from you!