Categorize your transactions once a month, or more frequently if needed
With frequent bookkeeping, it’s less work each time and you have increased clarity into your business. Doing so, you will be able to make sure you don’t miss any income, which could create trouble with the IRS, and don’t miss any expenses, which will cost you money. So don’t wait until the end of the year!
Set up automatic categorization and property assignment rules to save time
Most rental incomes and expenses are predictable and repetitive, so don’t tag the same things over and over. Set up rules on Azibo so that Azibo can tag categories and assign properties automatically. Save hours monthly and have the most up-to-date reporting with the least amount of work.
Add contact names (vendors or tenants) and notes to important transactions in case questions come up
Azibo allows you to add contacts or notes to your transactions, which can be easy references for you and your CPA later on. Always know what your expenses are for and the source of your income!
Assign bank or card Accounts to individual legal entities or portfolios
Mix-and-matching your transactions for various LLCs or portfolios gets messy quickly and makes it difficult to streamline your tagging and reporting. Having a clear separation of transactions for your legal entities or portfolios removes the complexity. Azibo allows you to easily create as many bank accounts as you need for your rental business at no cost.
Keep all the receipts, especially those >= $75
Running your rental business entails preparing for any outcome, including the worst-case scenario. In case of an audit, you’ll need to have all receipts, especially for any larger expenses than $75 on a single receipt. Digitally storing these receipts has become easier than ever.
Keep a complete accounting record which includes bank/card statements, mortgage statements
Save them in one place so that you can easily enter mortgage details in addition to your regular business transactions and quickly produce CPA-ready reports!
Always do bank and credit card reconciliations
It’s important to always do reconciliations and confirm your accounting entries and balances are consistent with those in the bank and credit card statements. Note that the accounting balances could be different from bank balances within a reasonable range. Common causes include uncashed checks, XX deposits, or other uncleared transactions.
Let Azibo handle bookkeeping for you, and work with your CPA
Your CPA should be your north star as you run your rental business and prepare for tax time, but you need the right sidekick to streamline your bookkeeping throughout the year and stay in compliance. With Azibo, you’ll have access to all the tools you need to provide accurate financial data to your CPA, and save tens of hours if not more.
Disclaimer: This content has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for accounting or tax advice.