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Fundamentals of Property Management Accounting Presented by Exo Edge
Introduction to Property Management Accounting Definition: Property management accounting involves tracking and managing financial transactions related to rental properties. Importance: Ensures financial transparency, compliance, and profitability. Key Users: Property owners, managers, investors, and accountants.
Key Financial Statements in Property Management Income Statement (Profit & Loss Statement) – Tracks revenue (rents, fees) and expenses. Balance Sheet – Shows assets, liabilities, and equity of the property. Cash Flow Statement – Monitors cash inflows and outflows for liquidity management.
Essential Accounting Practices for Property Managers Accrual vs. Cash Accounting – Understanding the difference. Rent Roll Management – Keeping track of rental income. Accounts Payable & Receivable – Managing vendor payments and tenant collections. Budgeting & Forecasting – Planning for maintenance, taxes, and other expenses.