Final modified on February seventh, 2023
By Brittany Benz
Property administration is a posh enterprise, which suggests submitting taxes will be difficult. Add outdated processes or paper information into the combination and it may value your corporation in the long term, too.
Whereas many property administration organizations dread tax season, submitting doesn’t should be irritating when you may have the proper processes and know-how options in place. As Steven Morgan, Group Product Supervisor at AppFolio, explains:
“Every year property managers should navigate tax season — re-familiarizing themselves with processes and addressing new necessities. Having the proper know-how can go a good distance in direction of offering peace of thoughts that groups are adhering to necessities throughout annual tax season and may get their work executed on time.”
In different phrases, utilizing the proper know-how and having streamlined workflows in place earlier than it’s time to file is essential. It could possibly additionally cut back your legal responsibility within the occasion of an audit.
Preserve studying for useful methods to make this tax season simpler than ever by enhancing processes and leveraging sensible options. Please take into account that whereas this text incorporates useful info, we aren’t offering authorized recommendation. All the time seek the advice of a professional tax legal professional about submitting taxes to your particular person enterprise.
Tax season tip #1: Consolidate and centralize your information
Disconnected accounting techniques and disparate information not solely require a substantial amount of handbook work to gather, but additionally go away room for human error. As a substitute, having the whole lot in a single system permits you to entry correct information shortly and effectively, so that you don’t should spend time searching down recordsdata and manually re-checking info.
Tax season tip #2: Manage recordsdata for sooner, simpler processing
With a digital property administration system, it’s even simpler to collect your important recordsdata and backup documentation. That’s as a result of the proper software program can routinely retailer and replace your recordsdata year-round, from vital tax paperwork to vendor info, so you may have the whole lot 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 attainable. You’ll want to enable extra time than you suppose chances are you’ll 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 can assist detect inconsistencies — like an incorrect ZIP code or an additional digit in a Social Safety quantity — that might lead to penalty charges or an sudden audit. With custom-made reporting instruments and built-in analytics, you possibly can guarantee your information is each correct and full.
Tax season tip #4: Preserve 1099s in line
Most property managers should challenge 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 in case you’re not cautious, however property administration software program generally is a large time-saver. The proper software program may even show you how to ship 1099s to house owners on time and file electronically as a substitute of by mail.
Need extra methods to streamline your 1099s? Take a look at our article 5 Tricks to Put together for Finish-of-12 months Reporting and 1099s.
Tax season tip #5: Free your group to deal with high-value work
Managing tax season generally is a time-consuming job that distracts from different important enterprise duties. Manually coming into information will be tedious and result in errors, rework, and potential submitting penalties. Nonetheless, with an awesome software program system in place, your group can deal with higher-level choices like staying updated on the newest tax legal guidelines and researching potential deductions that might save your corporation 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 shortly accessible, organized, and correct, tax season turns into considerably simpler and far much less irritating.
The following tips are simply the beginning. Set your self up for much more tax season success by downloading our accounting information under. Right here’s to getting an awesome return!