Keeping a digital financial record of your properties as a landlord in Bristol.
Like all businesses, it is crucial to stay on top of your finances as a Bristol landlord to ensure you're running a profitable business.
And while it might seem easy to keep a shoebox full of receipts, in today's digital world, it actually may make your life a lot harder.
We've laid out why you need a rental property chart, what to include in it, and our favourite ways to digitally track your financial records as a landlord in Bristol.
What does a rental property chart include?
As a Bristol landlord, you can make your rental property chart entirely your own. But typically rental property chart is broken into five main sections with subsections:
You'll provide the income and experience information needed to file taxes for revenue and expenses. Revenue and expenses transactions are also used to generate your rental property financial reports, such as the income statement, net cash flow, and capital expenses reports.
In assets, liabilities, and owner's equity, you'll create your balance sheets. While this isn't necessary for your taxes, it is still crucial for any business to have a balance sheet to remain profitable. A good balance sheet also makes it easier to keep track of tenant security deposits and annual depreciation expenses.
Setting up a rental property chart of accounts.
Firstly, you need to have a sound system before digitalising all your financial records for your properties. And setting up a property chart of accounts is a great place to start.
You'll have a transparent filing system, and you'll be able to streamline your taxes and financial reporting and simplify information for business partners, lenders, property managers, accountants, and future investors.
If you want to expand your portfolio of properties as a Bristol landlord, ensuring you have access to a digital financial record of your first few properties will speed that process up. It will give you peace of mind knowing that you can track your profits and losses clearly and efficiently. We can do all this for you as part of the letting service we provide here in Bristol. If you’d rather do this yourself, we’ve put together a helpful list below.
Our favourite tools to digitally track your financial records
As a successful lettings agency in Bristol, here is our list of top ways to track your finances:
While there are many ways to digitally track your finances as a landlord, we recommend investing in accounting software or simply using Google Sheets and Excel.
Whatever way you decide to keep everything tracked, you're making the best choice for your business as long as it's digitally.
Ready to expand your portfolio of properties in Bristol?
Keeping track of your financial records as a landlord is a great way to ensure you're making a profit and making the most out of your tax claim, but it's also a great way to work with a fully managed letting agency in Bristol.
If you're considering a fully managed letting agency in Bristol so you can focus on expanding your portfolio of properties, talk to us today.
Book your free valuation today.