Posted on December 13th, 2024

As we near the end of the year, it's time to wrap up the books, reflect on the past months, and get your property management business ready for a fresh start. While year-end tasks can seem overwhelming, they’re a golden opportunity to clean up your financials, streamline processes, and set yourself up for success in the new year. The good news? We’ve got your back!

Here are the must-do year-end tasks for property management accounting and bookkeeping, with a few tips from KRS Smart Books to help you breeze through it.

1. Reconcile All Bank Accounts and Trust Funds

Before closing the books on the year, it’s essential to make sure all your bank accounts are reconciled. This includes your operating accounts, security deposit trust accounts, and any other accounts tied to your property management business. Reconciling ensures your records match the bank statements and helps avoid any surprise discrepancies.

Tip: Double-check that any outstanding transactions or pending deposits are accounted for. This will ensure you have an accurate picture of your financial standing.

2. Clean Up Your Financial Statements

A clean and clear set of financial statements is your best friend when it comes to preparing for tax season and making business decisions in the new year. Go through your Profit & Loss (P&L) statement and balance sheet to confirm that everything is accurate. Make sure your expense categories are correctly classified, and any non-recurring expenses (like repairs or one-time fees) are properly marked.

Tip: If you need a fresh pair of eyes to go over your statements, KRS Smart Books specializes in cleanup services and can help ensure everything is spotless and accurate!

3. Prepare for Tax Season

Tax season will be here before you know it! Now is the perfect time to gather all your documents, including receipts, invoices, and financial reports. If you haven’t already, consider setting up your tax filing system for the upcoming year.

Tip: Keep track of all deductible expenses, such as maintenance costs, property management fees, and utility payments. This will save you time and money when tax season rolls around.

4. Review and Update Property Management Software

Whether you’re using AppFolio, Buildium, Propertyware, or another system, it’s essential to make sure your property management software is up to date. This includes reviewing tenant and owner data, making sure all transactions are properly entered, and ensuring that recurring charges are set for the new year.

Tip: If you’re overwhelmed by software migrations or data clean-up, KRS Smart Books can help you streamline your property management system, ensuring all your accounts are set up perfectly for the new year.

5. Evaluate Your Current Year’s Financial Performance

Take a look at how your property management business performed over the past year. What worked well? What could have been better? Use this data to assess your pricing, tenant retention, and overall profitability. It’s a great time to create a financial plan for the next year.

Tip: If you’re not sure how to start, our team at KRS Smart Books offers financial consulting services that can help you analyze your current performance and set realistic goals for the new year.

6. Create an Action Plan for the New Year

The start of the new year is the perfect time to set fresh goals, whether it’s increasing revenue, improving tenant retention, or boosting your property management portfolio. Map out your objectives and create an action plan to achieve them. A solid financial foundation will give you the confidence to tackle whatever comes your way.

Tip: Want to stay on track? KRS Smart Books offers full-service bookkeeping and accounting support, so you can focus on growing your business while we handle the numbers.

Let KRS Smart Books Help You Get Ready for the New Year!

At KRS Smart Books, we specialize in helping property managers like you get their financials in order. From bank reconciliations and bookkeeping clean-up to setting up systems for tax season and creating long-term financial plans, we’ve got your back every step of the way.

Whether you’re a small property manager or you’re scaling your business to the next level, our team is here to ensure your books are accurate, your processes are smooth, and your 2025 is off to the best start possible.

Contact KRS Smart Books today to schedule a consultation a nd see how we can help you wrap up the year strong and prepare for even greater success in the months ahead!