Property Management Accounting Basics in Buildium - 2025
Property Management Accounting Basics in Buildium - 2025

Property management accounting keeps your business profitable and compliant, but many property managers struggle with the technical details. Buildium simplifies property management accounting by automating rent collection, expense tracking, and financial reporting in one integrated platform. This software handles the complex bookkeeping tasks that consume hours of administrative time.
Property managers who master property management accounting basics can reduce overhead costs and improve cash flow for their rental properties. Buildium's system tracks everything from security deposits to vendor payments while generating reports that property owners expect. The platform eliminates manual data entry and reduces accounting errors that can damage your property management business.
This guide walks property managers through each step of setting up and using Buildium's accounting features. You'll learn how to configure the system, process rent payments, track expenses, and generate financial reports that demonstrate your real estate investments' performance.
Key Takeaways
- Buildium automates rent collection and expense tracking to reduce manual accounting work for property managers
- The platform integrates security deposit management with financial reporting to maintain accurate records
- Property managers can generate detailed financial reports and reconcile accounts directly within Buildium's system
Property Management Accounting Basics
Property managers need to master core accounting terms, streamline daily financial tasks, and generate accurate reports to maintain healthy cash flow and make informed business decisions.
What Are Essential Accounting Terms In Property Management?
Property managers must understand key accounting terms to track financial transactions effectively. Accounts receivable represents money tenants owe for rent and services. Accounts payable includes bills owed to vendors for maintenance and utilities.
Cash accounting records transactions only when money changes hands. Accrual accounting records income and expenses when they occur, regardless of payment timing. Most property managers use accrual accounting for accurate financial performance tracking.
Fixed costs remain constant regardless of occupancy levels. These include property taxes, insurance, and permanent staff salaries. Variable expenses change based on property activity, like maintenance and utilities.
Depreciation spreads asset costs over time. Property managers use this method for equipment and building improvements. Revenue includes all income sources like rent payments, parking fees, and laundry services.
Bank reconciliation matches accounting records with bank statements. This process identifies discrepancies and maintains accurate cash records. Property managers should perform this task monthly to catch errors early.
How Does Buildium Simplify Daily Accounting Tasks?
Buildium centralizes property management accounting through automated systems that handle routine financial tasks. The platform manages the accounting cycle by tracking charges, payments, and deposits in one location.
Property managers can process rent payments automatically through online portals. Tenants submit payments electronically, reducing manual data entry and processing time. The system updates account balances immediately after payment processing.
Vendor payment processing streamlines accounts payable management. Property managers can schedule payments, track due dates, and maintain vendor records. The platform generates payment reports for expense tracking.
Automated invoicing creates and sends bills to tenants for rent and additional charges. Property managers can set up recurring invoices for monthly rent and late fees. The system tracks payment status and sends reminders for overdue accounts.
Expense tracking categorizes costs by property and expense type. Property managers can upload receipts, assign expenses to specific properties, and generate detailed expense reports. This feature simplifies tax preparation and financial analysis.
Which Reports Are Most Critical For Property Managers?
Property managers need specific reports to monitor financial health and make operational decisions. Monthly income statements show revenue and expenses for each property. These reports help identify profitable properties and areas needing attention.
Cash flow reports track money coming in and going out. Property managers use these reports to plan for upcoming expenses and identify seasonal patterns. Regular cash flow monitoring prevents financial shortfalls.
Accounts receivable aging reports list outstanding tenant balances by time period. These reports help property managers prioritize collection efforts and identify problem tenants. They show which accounts are 30, 60, or 90 days past due.
Expense reports by category break down costs by maintenance, utilities, and administrative expenses. Property managers can identify cost trends and budget for future periods. Property management accounting systems generate these reports automatically.
Property performance reports compare income and expenses across multiple properties. These reports help property managers identify top-performing assets and properties needing improvement. They provide data for investment decisions and portfolio management.
Bank reconciliation reports verify that accounting records match bank statements. Property managers should review these reports monthly to catch discrepancies and maintain accurate bookkeeping records.
Setting Up Buildium For Accounting
Getting your accounting system right from the start saves time and prevents costly mistakes later. The key steps involve organizing your chart of accounts, adding properties correctly, and setting accurate starting balances.
How Do You Configure Chart Of Accounts In Buildium?
The chart of accounts forms the backbone of your property management accounting system. Buildium comes with a pre-built chart of accounts designed for property managers.
Start by reviewing the default accounts that Buildium provides. These include standard categories like rent income, maintenance expenses, and utilities. Most property managers can use these accounts without major changes.
Create custom accounts only when needed. Add specific accounts for unique income sources like pet fees or storage rentals. Keep account names simple and clear so your team can easily understand them.
Group similar accounts together using numbering systems. For example, use 4000-4999 for all income accounts and 5000-5999 for operating expenses. This makes your property management accounting reports easier to read.
Set up separate accounts for different property types if you manage various kinds of real estate. This helps track performance across your portfolio more effectively.
What Are The Best Practices For Adding Properties And Units?
Property setup directly impacts your financial reporting accuracy. Each property should have its own separate business account structure in Buildium.
Start with basic property information. Enter the complete address, purchase date, and property type. Add owner contact details and any special management terms that affect accounting.
Create individual units for each rental space. This includes apartments, single-family homes, and commercial spaces. Each unit needs its own rent amount and lease terms.
Set up your general ledger to track income and expenses by property. This separation helps you see which properties make money and which ones need attention.
Link each property to the correct business bank account if you manage funds separately. Many property managers use separate accounts for different owners or property types.
How Can You Ensure Accurate Opening Balances?
Opening balances set the foundation for all future financial reports. Getting these wrong creates problems that compound over time.
Gather all financial documents first. This includes bank statements, outstanding invoices, and tenant balances from your previous system. Make sure everything is current as of your start date.
Enter tenant security deposits as liabilities since this money belongs to tenants. Add any prepaid rent or outstanding maintenance bills to get a complete picture.
Import your business bank account balances exactly as they appear on your bank statements. Use the same date for all opening balances to keep everything consistent.
Double-check your work by running a trial balance report. Total assets should equal total liabilities plus equity. If they don't match, review each entry until you find the error.
Test your setup with a few sample transactions before going live. This helps catch any configuration issues while they're still easy to fix.
Handling Rent Payments And Receivables
Buildium's rent collection system tracks payments automatically and generates detailed reports for property managers. The platform offers automated payment reminders and multiple strategies to reduce late payments through streamlined processes.
How Does Buildium Track Rent Collection?
Buildium automatically records rent payments when tenants pay through the platform. The system creates a detailed audit trail for each transaction.
Property managers can view payment status in real-time through the dashboard. Each property shows outstanding balances and payment history clearly.
The platform generates monthly rent rolls that display all units and their payment status. This report helps managers identify which tenants have paid and which payments are overdue.
Payment tracking features include:
- Automatic payment posting
- Real-time balance updates
- Detailed transaction histories
- Monthly and annual payment reports
Buildium separates rent payments from other fees like late charges or utilities. This breakdown helps managers understand exactly what tenants owe and when payments were received.
The system also tracks partial payments and applies them according to the property manager's preferences. Managers can set rules for how partial payments get allocated across different charges.
What Steps Help Minimize Late Payments?
Setting up automatic rent collection reduces late payments significantly. Buildium allows tenants to enroll in autopay for recurring monthly payments.
Effective strategies include:
- Requiring online payment enrollment during lease signing
- Offering multiple payment methods (ACH, credit cards, money orders)
- Setting clear payment due dates and late fee policies
- Sending payment reminders before due dates
Property managers should establish consistent late fee policies and enforce them fairly. Clear communication about payment expectations prevents confusion and disputes.
The platform tracks rent collection patterns to help managers identify tenants who frequently pay late. This data helps with renewal decisions and tenant screening.
Offering payment incentives like small discounts for early payments can encourage timely rent collection. Some managers waive processing fees for tenants who pay through preferred methods.
Can You Automate Payment Reminders In Buildium?
Buildium sends automatic payment reminders through email and text messages. Property managers can customize reminder timing and content for their properties.
The system sends reminders at preset intervals before rent is due. Managers can schedule reminders 5, 3, and 1 days before the due date.
Automated reminder features:
- Customizable message templates
- Multiple reminder schedules
- Email and SMS delivery options
- Automatic escalation for late payments
Managers can personalize reminder messages with property-specific information and payment instructions. The system includes tenant names and payment amounts automatically.
After rent becomes overdue, Buildium continues sending escalating reminders. These messages can include late fee information and next steps for collections.
The platform tracks which tenants respond to different reminder types. This data helps managers adjust their communication strategies for better property management accounting results.
Property managers can also set up automatic late fee assessments that trigger when rent remains unpaid after the grace period ends.
Expense Tracking And Vendor Payments
Buildium streamlines expense management through automated categorization and vendor payment workflows. Property managers can track maintenance costs, property taxes, and accounts payable while maintaining accurate financial records.
How To Enter And Categorize Expenses In Buildium?
Property managers enter expenses through the Expenses tab in Buildium's dashboard. Click "Add Expense" to create a new entry with vendor details, amount, and date.
Buildium offers predefined expense categories including maintenance, utilities, property taxes, and insurance. Users can also create custom categories for specific business needs.
The system allows expense allocation across multiple properties. Property managers can split costs between units or buildings using percentage or dollar amounts.
Receipt attachments are essential for property management accounting accuracy. Upload photos or PDF files directly to each expense entry.
Buildium automatically updates the general ledger when expenses are entered. This ensures real-time financial reporting and maintains accurate books.
What Is The Process For Paying Vendors?
Vendor payments start with setting up vendor profiles in the Vendors section. Enter contact information, payment terms, and preferred payment methods.
Property managers can pay vendors through:
- ACH transfers (bank-to-bank)
- Paper checks (printed or handwritten)
- Electronic payments through integrated services
Buildium tracks all vendor payments in the accounts payable system. Outstanding invoices appear in the dashboard with due dates and amounts.
The payment approval workflow allows multiple authorization levels. Property managers can require owner approval for expenses above set thresholds.
Batch payments save time when paying multiple vendors. Select several invoices and process payments simultaneously through the system.
Are Recurring Expenses Managed Efficiently?
Buildium handles recurring expenses through automated scheduling. Set up monthly property taxes, insurance premiums, and maintenance contracts to process automatically.
Property managers define the frequency, amount, and duration for each recurring expense. The system creates entries based on these parameters without manual intervention.
Recurring vendor payments link to existing vendor profiles and expense categories. This maintains consistency in expense tracking and reporting.
The system sends notifications before processing recurring payments. Property managers can review and modify amounts before automatic processing occurs.
Buildium allows bulk editing of recurring expenses. Change payment amounts or frequencies across multiple properties simultaneously to reflect market changes.
Managing Security Deposits In Buildium
Buildium handles security deposits as liabilities on your books, requiring proper setup and tracking throughout the tenant lifecycle. Property managers must enter existing deposits, configure deposit accounts, and maintain accurate records for refunds and dispositions.
How Do You Record Security Deposits?
Property managers record security deposits in Buildium by entering them as tenant charges on the lease ledger. The system automatically creates a liability account to track these funds.
When entering tenant deposits that have already been received, navigate to the tenant ledger and add a security deposit charge. Select the appropriate deposit type from the dropdown menu.
For new deposits:
- Add charge to tenant ledger
- Select security deposit category
- Enter deposit amount
- Apply payment immediately
The payment sits in undeposited funds until you process it through the banking module. Property managers can then transfer these funds to the appropriate bank account.
Owner-held deposits require different tracking. You must set up separate liability accounts for each property owner who holds their own deposits. This keeps accurate records without commingling funds.
What Are The Rules For Handling Deposit Refunds?
Deposit refunds follow specific accounting rules within Buildium to maintain proper liability tracking. Property managers must process refunds through the tenant ledger to reduce the liability balance.
Create a refund charge on the tenant ledger with a negative amount. This reduces the security deposit liability and creates a payable to the tenant. The system maintains an audit trail of all deposit transactions.
Partial refunds require itemized deductions:
- Cleaning fees
- Repair costs
- Unpaid rent
- Other allowable charges
Enter each deduction as a separate charge against the security deposit. The remaining balance becomes the refund amount. Property management accounting basics require documentation for all deductions.
Forfeited deposits must be processed as income to the property owner. Transfer the liability balance to a revenue account rather than creating a refund.
How Is Deposit Accounting Tracked Over Time?
Buildium tracks security deposit accounting through liability reports and tenant ledger histories. Property managers can view deposit balances, transactions, and aging reports at any time.
The Security Deposit Liability Report shows total deposits held by property and tenant. This report helps with compliance and provides proof of proper fund handling during audits.
Monthly reconciliation ensures deposit records match bank balances. Compare the liability report total to actual funds in deposit accounts. Any discrepancies require investigation and correction.
Buildium maintains a complete transaction history for each deposit. Property managers can track:
- Initial deposit receipt
- Interest earned (where required)
- Partial refunds
- Final disposition
Year-end reporting includes security deposits on financial statements. The liability balance appears on the balance sheet, while any forfeited deposits show as income on profit and loss reports.
Financial Reporting And Reconciliation
Property managers need accurate financial reports and proper reconciliation to track income, expenses, and maintain compliance. Monthly reviews of key reports and systematic bank reconciliation prevent errors and ensure audit readiness.
Which Financial Reports Should Property Managers Review Monthly?
Property managers should focus on three essential reports each month. The income statement shows rental income, operating expenses, and net profit for each property.
The balance sheet displays assets, liabilities, and equity at a specific point in time. This report helps track security deposits and outstanding tenant balances.
Cash flow statements track money moving in and out of properties. These reports show rent collections, vendor payments, and operating expenses by property or portfolio.
Monthly Report Checklist:
- Income statements by property
- Balance sheet with current liabilities
- Cash flow statements
- Tenant aging reports
- Vendor payment summaries
Property managers should review financial reports within five days of month-end. This timing allows for corrections before quarterly reviews.
How Does Bank Reconciliation Work In Buildium?
Bank reconciliation matches transactions in Buildium with actual bank statements. The system imports bank transactions automatically through connected accounts.
Property managers compare imported transactions with recorded entries in Buildium. Unmatched items require investigation and correction.
Reconciliation Steps:
- Import bank transactions
- Match deposits to rent payments
- Verify expense transactions
- Identify unmatched items
- Make necessary adjustments
Buildium flags discrepancies between bank records and system entries. Property managers must resolve these differences before completing reconciliation.
The platform tracks reconciliation status for each account. Managers can see which accounts need attention and when reconciliation was last completed.
What Steps Ensure Reports Are Audit-Ready?
Audit-ready reports require complete documentation and proper categorization. Property managers must ensure all transactions have supporting documents attached.
Documentation Requirements:
- Receipts for all expenses
- Lease agreements for income
- Bank statements for deposits
- Vendor invoices and payments
Financial statements need consistent account coding across all properties. Property managers should use standardized expense categories and income classifications.
Monthly reconciliation must be completed before generating reports. Unreconciled accounts create inaccurate financial reporting that fails audit requirements.
Property managers should maintain backup files of all financial data. Regular data exports protect against system failures and provide additional audit documentation.
Reports must show clear audit trails from source documents to final statements. This transparency helps auditors verify transactions and reduces review time.
Tips For Beginners Using Buildium Accounting
New property managers often struggle with accounting software setup and maintaining accurate financial records. The most critical areas to focus on include avoiding data entry errors, creating efficient monthly workflows, and knowing where to get help when needed.
What Are The Most Common Mistakes To Avoid?
Data Entry Errors represent the biggest threat to accurate financial records. Property managers frequently enter rent payments in wrong tenant accounts or misclassify maintenance expenses. These mistakes compound quickly and create major problems during tax season.
Chart of Accounts Setup requires careful attention from the start. Many beginners create too many expense categories or fail to separate operating expenses from capital improvements. This makes tax compliance and reporting much harder later.
Bank Reconciliation Delays cause serious cash flow problems. Property managers who wait weeks to reconcile their bank accounts often discover missing deposits or unauthorized charges too late to fix them easily.
Security Deposit Tracking mistakes lead to legal issues with tenants. Mixing security deposits with operating funds violates regulations in most states and creates accounting nightmares.
Monthly Closing Procedures get skipped when managers feel overwhelmed. This creates a backlog of unrecorded transactions that becomes impossible to sort out accurately.
How Can You Streamline Your Accounting Workflow?
Automated Rent Collection eliminates most manual data entry. Set up ACH payments and online portals to reduce check processing time by 80%. This also improves cash flow since electronic payments clear faster than checks.
Recurring Expenses should be automated wherever possible. Property insurance, management fees, and utility bills can be scheduled in advance. This prevents missed payments and late fees.
Monthly Task Lists keep important deadlines visible. Create a checklist that includes:
- Process all rent payments
- Enter maintenance invoices
- Pay vendor bills
- Reconcile bank accounts
- Generate owner statements
Document Organization saves hours during tax preparation. Scan all receipts immediately and attach them to the correct expense entries. Use consistent naming conventions for easy searching.
Regular Backup Procedures protect against data loss. Export financial reports monthly and store them in multiple locations. This creates a paper trail that auditors and tax preparers appreciate.
Where To Find Additional Training And Support?
Buildium Academy offers comprehensive training modules designed specifically for property managers. The platform includes video tutorials, practice exercises, and certification programs that cover both basic and advanced accounting topics.
Live Support Options provide immediate help when urgent issues arise. Phone support handles complex problems faster than email tickets. Use chat support for quick questions about specific features or functions.
User Community Forums connect property managers with similar challenges. These forums often contain solutions to common problems and real-world examples of property management accounting best practices.
Professional Bookkeeping Services make sense for busy property managers. Many accounting firms specialize in real estate and understand tax regulations, deductions, and compliance requirements better than general bookkeepers.
Continuing Education Programs help managers stay current with changing tax laws and accounting standards. Many state licensing boards require ongoing education that can be satisfied through accounting-focused courses.
Local Real Estate Groups provide networking opportunities with experienced property managers. These connections often lead to practical advice about budgeting, forecasting, and handling complex accounting situations.
Frequently Asked Questions
Property managers commonly ask about setting up accounting structures, generating financial reports, maintaining GAAP compliance, and learning basic accounting functions within Buildium. These questions focus on transaction handling, report generation, and understanding core job responsibilities for property management accounting.
How can I set up a fundamental accounting structure within Buildium for property management?
Property managers can establish their accounting foundation by configuring the chart of accounts first. The system allows customization of income and expense categories to match specific property types and business needs.
Management fee policies require initial setup to define how fees are calculated and allocated across properties. This includes establishing management income accounts and non-commissionable income accounts.
Property managers should create separate accounts for each property to maintain clear financial separation. The general ledger structure should reflect assets, liabilities, equity, revenue, and expense categories specific to property management operations.
Bank accounts must be linked to enable automatic transaction imports and reconciliation. This connection streamlines the recording process and reduces manual data entry errors.
What are the key financial reports used in property management accounting with Buildium?
Property managers rely on profit and loss statements to track income and expenses for each property. These reports show rental income, operating expenses, and net operating income over specific time periods.
Cash flow reports display actual money movement in and out of accounts. This differs from accrual-based reports by focusing on when cash transactions occur rather than when they are earned or incurred.
Balance sheets provide snapshots of assets, liabilities, and equity at specific points in time. Property managers use these to assess financial position and property values.
Rent rolls summarize tenant information, lease terms, and payment status across all properties. These reports help track occupancy rates and identify delinquent accounts.
In what ways does Buildium assist with GAAP compliance for property management?
Buildium supports accrual accounting methods that align with Generally Accepted Accounting Principles. The system records transactions when they occur rather than when cash changes hands.
The software maintains proper documentation trails for all financial transactions. This includes detailed records of income, expenses, and adjustments that auditors require for compliance verification.
Depreciation calculations can be tracked and allocated properly across multiple accounting periods. This helps property managers spread asset costs over their useful lives as GAAP requires.
Revenue recognition features ensure rental income is recorded in the correct accounting periods. Late fees, security deposits, and other charges are categorized appropriately for accurate financial reporting.
What introductory courses are recommended for learning property management accounting on Buildium?
Property managers can access built-in tutorials covering accounting basics, setup procedures, and daily operations within the software. These step-by-step guides cover essential features without requiring external training.
The platform offers specific modules for accounting functions, including transaction recording, report generation, and bank reconciliation processes. Each module includes practical examples relevant to property management scenarios.
Video tutorials demonstrate real-world applications of accounting features within Buildium. These visual guides help property managers understand complex processes like allocation and expense recovery.
Practice exercises allow users to test their knowledge before implementing accounting procedures on live data. This hands-on approach builds confidence in using the system effectively.
How does Buildium handle property accounting and what are some examples of typical transactions?
Rent collection transactions are recorded automatically when tenants make payments through the system. These entries update accounts receivable and cash accounts simultaneously.
Maintenance expense transactions can be entered manually or imported from vendor invoices. The system allows allocation of these costs to specific properties or units for accurate expense tracking.
Security deposit handling includes separate liability accounts to track tenant deposits. When tenants move out, these amounts can be applied to damages or refunded appropriately.
Utility bill payments are recorded as operating expenses and can be charged back to tenants when applicable. The chargeback feature automates the process of recovering these costs from responsible parties.
What should a beginner know about the job responsibilities of accounting in property management when using Buildium?
Daily tasks include recording all financial transactions, from rent payments to maintenance expenses. Property managers must ensure accurate categorization of each transaction for proper financial reporting.
Monthly responsibilities involve bank reconciliation to match accounting records with bank statements. This process identifies discrepancies and ensures cash balances are accurate.
Tenant billing requires creating and sending invoices for rent, late fees, and other charges. The system automates many of these processes while allowing manual adjustments when necessary.
Financial reporting duties include generating monthly profit and loss statements, cash flow reports, and tenant summaries. Property owners expect these reports to be accurate and delivered on schedule.

Property Management Accounting Basics in Buildium - 2025
Property management accounting keeps your business profitable and compliant, but many property managers struggle with the technical details. Buildium simplifies property management accounting by automating rent collection, expense tracking, and financial reporting in one integrated platform. This software handles the complex bookkeeping tasks that consume hours of administrative time.
Property managers who master property management accounting basics can reduce overhead costs and improve cash flow for their rental properties. Buildium's system tracks everything from security deposits to vendor payments while generating reports that property owners expect. The platform eliminates manual data entry and reduces accounting errors that can damage your property management business.
This guide walks property managers through each step of setting up and using Buildium's accounting features. You'll learn how to configure the system, process rent payments, track expenses, and generate financial reports that demonstrate your real estate investments' performance.
Key Takeaways
- Buildium automates rent collection and expense tracking to reduce manual accounting work for property managers
- The platform integrates security deposit management with financial reporting to maintain accurate records
- Property managers can generate detailed financial reports and reconcile accounts directly within Buildium's system
Property Management Accounting Basics
Property managers need to master core accounting terms, streamline daily financial tasks, and generate accurate reports to maintain healthy cash flow and make informed business decisions.
What Are Essential Accounting Terms In Property Management?
Property managers must understand key accounting terms to track financial transactions effectively. Accounts receivable represents money tenants owe for rent and services. Accounts payable includes bills owed to vendors for maintenance and utilities.
Cash accounting records transactions only when money changes hands. Accrual accounting records income and expenses when they occur, regardless of payment timing. Most property managers use accrual accounting for accurate financial performance tracking.
Fixed costs remain constant regardless of occupancy levels. These include property taxes, insurance, and permanent staff salaries. Variable expenses change based on property activity, like maintenance and utilities.
Depreciation spreads asset costs over time. Property managers use this method for equipment and building improvements. Revenue includes all income sources like rent payments, parking fees, and laundry services.
Bank reconciliation matches accounting records with bank statements. This process identifies discrepancies and maintains accurate cash records. Property managers should perform this task monthly to catch errors early.
How Does Buildium Simplify Daily Accounting Tasks?
Buildium centralizes property management accounting through automated systems that handle routine financial tasks. The platform manages the accounting cycle by tracking charges, payments, and deposits in one location.
Property managers can process rent payments automatically through online portals. Tenants submit payments electronically, reducing manual data entry and processing time. The system updates account balances immediately after payment processing.
Vendor payment processing streamlines accounts payable management. Property managers can schedule payments, track due dates, and maintain vendor records. The platform generates payment reports for expense tracking.
Automated invoicing creates and sends bills to tenants for rent and additional charges. Property managers can set up recurring invoices for monthly rent and late fees. The system tracks payment status and sends reminders for overdue accounts.
Expense tracking categorizes costs by property and expense type. Property managers can upload receipts, assign expenses to specific properties, and generate detailed expense reports. This feature simplifies tax preparation and financial analysis.
Which Reports Are Most Critical For Property Managers?
Property managers need specific reports to monitor financial health and make operational decisions. Monthly income statements show revenue and expenses for each property. These reports help identify profitable properties and areas needing attention.
Cash flow reports track money coming in and going out. Property managers use these reports to plan for upcoming expenses and identify seasonal patterns. Regular cash flow monitoring prevents financial shortfalls.
Accounts receivable aging reports list outstanding tenant balances by time period. These reports help property managers prioritize collection efforts and identify problem tenants. They show which accounts are 30, 60, or 90 days past due.
Expense reports by category break down costs by maintenance, utilities, and administrative expenses. Property managers can identify cost trends and budget for future periods. Property management accounting systems generate these reports automatically.
Property performance reports compare income and expenses across multiple properties. These reports help property managers identify top-performing assets and properties needing improvement. They provide data for investment decisions and portfolio management.
Bank reconciliation reports verify that accounting records match bank statements. Property managers should review these reports monthly to catch discrepancies and maintain accurate bookkeeping records.
Setting Up Buildium For Accounting
Getting your accounting system right from the start saves time and prevents costly mistakes later. The key steps involve organizing your chart of accounts, adding properties correctly, and setting accurate starting balances.
How Do You Configure Chart Of Accounts In Buildium?
The chart of accounts forms the backbone of your property management accounting system. Buildium comes with a pre-built chart of accounts designed for property managers.
Start by reviewing the default accounts that Buildium provides. These include standard categories like rent income, maintenance expenses, and utilities. Most property managers can use these accounts without major changes.
Create custom accounts only when needed. Add specific accounts for unique income sources like pet fees or storage rentals. Keep account names simple and clear so your team can easily understand them.
Group similar accounts together using numbering systems. For example, use 4000-4999 for all income accounts and 5000-5999 for operating expenses. This makes your property management accounting reports easier to read.
Set up separate accounts for different property types if you manage various kinds of real estate. This helps track performance across your portfolio more effectively.
What Are The Best Practices For Adding Properties And Units?
Property setup directly impacts your financial reporting accuracy. Each property should have its own separate business account structure in Buildium.
Start with basic property information. Enter the complete address, purchase date, and property type. Add owner contact details and any special management terms that affect accounting.
Create individual units for each rental space. This includes apartments, single-family homes, and commercial spaces. Each unit needs its own rent amount and lease terms.
Set up your general ledger to track income and expenses by property. This separation helps you see which properties make money and which ones need attention.
Link each property to the correct business bank account if you manage funds separately. Many property managers use separate accounts for different owners or property types.
How Can You Ensure Accurate Opening Balances?
Opening balances set the foundation for all future financial reports. Getting these wrong creates problems that compound over time.
Gather all financial documents first. This includes bank statements, outstanding invoices, and tenant balances from your previous system. Make sure everything is current as of your start date.
Enter tenant security deposits as liabilities since this money belongs to tenants. Add any prepaid rent or outstanding maintenance bills to get a complete picture.
Import your business bank account balances exactly as they appear on your bank statements. Use the same date for all opening balances to keep everything consistent.
Double-check your work by running a trial balance report. Total assets should equal total liabilities plus equity. If they don't match, review each entry until you find the error.
Test your setup with a few sample transactions before going live. This helps catch any configuration issues while they're still easy to fix.
Handling Rent Payments And Receivables
Buildium's rent collection system tracks payments automatically and generates detailed reports for property managers. The platform offers automated payment reminders and multiple strategies to reduce late payments through streamlined processes.
How Does Buildium Track Rent Collection?
Buildium automatically records rent payments when tenants pay through the platform. The system creates a detailed audit trail for each transaction.
Property managers can view payment status in real-time through the dashboard. Each property shows outstanding balances and payment history clearly.
The platform generates monthly rent rolls that display all units and their payment status. This report helps managers identify which tenants have paid and which payments are overdue.
Payment tracking features include:
- Automatic payment posting
- Real-time balance updates
- Detailed transaction histories
- Monthly and annual payment reports
Buildium separates rent payments from other fees like late charges or utilities. This breakdown helps managers understand exactly what tenants owe and when payments were received.
The system also tracks partial payments and applies them according to the property manager's preferences. Managers can set rules for how partial payments get allocated across different charges.
What Steps Help Minimize Late Payments?
Setting up automatic rent collection reduces late payments significantly. Buildium allows tenants to enroll in autopay for recurring monthly payments.
Effective strategies include:
- Requiring online payment enrollment during lease signing
- Offering multiple payment methods (ACH, credit cards, money orders)
- Setting clear payment due dates and late fee policies
- Sending payment reminders before due dates
Property managers should establish consistent late fee policies and enforce them fairly. Clear communication about payment expectations prevents confusion and disputes.
The platform tracks rent collection patterns to help managers identify tenants who frequently pay late. This data helps with renewal decisions and tenant screening.
Offering payment incentives like small discounts for early payments can encourage timely rent collection. Some managers waive processing fees for tenants who pay through preferred methods.
Can You Automate Payment Reminders In Buildium?
Buildium sends automatic payment reminders through email and text messages. Property managers can customize reminder timing and content for their properties.
The system sends reminders at preset intervals before rent is due. Managers can schedule reminders 5, 3, and 1 days before the due date.
Automated reminder features:
- Customizable message templates
- Multiple reminder schedules
- Email and SMS delivery options
- Automatic escalation for late payments
Managers can personalize reminder messages with property-specific information and payment instructions. The system includes tenant names and payment amounts automatically.
After rent becomes overdue, Buildium continues sending escalating reminders. These messages can include late fee information and next steps for collections.
The platform tracks which tenants respond to different reminder types. This data helps managers adjust their communication strategies for better property management accounting results.
Property managers can also set up automatic late fee assessments that trigger when rent remains unpaid after the grace period ends.
Expense Tracking And Vendor Payments
Buildium streamlines expense management through automated categorization and vendor payment workflows. Property managers can track maintenance costs, property taxes, and accounts payable while maintaining accurate financial records.
How To Enter And Categorize Expenses In Buildium?
Property managers enter expenses through the Expenses tab in Buildium's dashboard. Click "Add Expense" to create a new entry with vendor details, amount, and date.
Buildium offers predefined expense categories including maintenance, utilities, property taxes, and insurance. Users can also create custom categories for specific business needs.
The system allows expense allocation across multiple properties. Property managers can split costs between units or buildings using percentage or dollar amounts.
Receipt attachments are essential for property management accounting accuracy. Upload photos or PDF files directly to each expense entry.
Buildium automatically updates the general ledger when expenses are entered. This ensures real-time financial reporting and maintains accurate books.
What Is The Process For Paying Vendors?
Vendor payments start with setting up vendor profiles in the Vendors section. Enter contact information, payment terms, and preferred payment methods.
Property managers can pay vendors through:
- ACH transfers (bank-to-bank)
- Paper checks (printed or handwritten)
- Electronic payments through integrated services
Buildium tracks all vendor payments in the accounts payable system. Outstanding invoices appear in the dashboard with due dates and amounts.
The payment approval workflow allows multiple authorization levels. Property managers can require owner approval for expenses above set thresholds.
Batch payments save time when paying multiple vendors. Select several invoices and process payments simultaneously through the system.
Are Recurring Expenses Managed Efficiently?
Buildium handles recurring expenses through automated scheduling. Set up monthly property taxes, insurance premiums, and maintenance contracts to process automatically.
Property managers define the frequency, amount, and duration for each recurring expense. The system creates entries based on these parameters without manual intervention.
Recurring vendor payments link to existing vendor profiles and expense categories. This maintains consistency in expense tracking and reporting.
The system sends notifications before processing recurring payments. Property managers can review and modify amounts before automatic processing occurs.
Buildium allows bulk editing of recurring expenses. Change payment amounts or frequencies across multiple properties simultaneously to reflect market changes.
Managing Security Deposits In Buildium
Buildium handles security deposits as liabilities on your books, requiring proper setup and tracking throughout the tenant lifecycle. Property managers must enter existing deposits, configure deposit accounts, and maintain accurate records for refunds and dispositions.
How Do You Record Security Deposits?
Property managers record security deposits in Buildium by entering them as tenant charges on the lease ledger. The system automatically creates a liability account to track these funds.
When entering tenant deposits that have already been received, navigate to the tenant ledger and add a security deposit charge. Select the appropriate deposit type from the dropdown menu.
For new deposits:
- Add charge to tenant ledger
- Select security deposit category
- Enter deposit amount
- Apply payment immediately
The payment sits in undeposited funds until you process it through the banking module. Property managers can then transfer these funds to the appropriate bank account.
Owner-held deposits require different tracking. You must set up separate liability accounts for each property owner who holds their own deposits. This keeps accurate records without commingling funds.
What Are The Rules For Handling Deposit Refunds?
Deposit refunds follow specific accounting rules within Buildium to maintain proper liability tracking. Property managers must process refunds through the tenant ledger to reduce the liability balance.
Create a refund charge on the tenant ledger with a negative amount. This reduces the security deposit liability and creates a payable to the tenant. The system maintains an audit trail of all deposit transactions.
Partial refunds require itemized deductions:
- Cleaning fees
- Repair costs
- Unpaid rent
- Other allowable charges
Enter each deduction as a separate charge against the security deposit. The remaining balance becomes the refund amount. Property management accounting basics require documentation for all deductions.
Forfeited deposits must be processed as income to the property owner. Transfer the liability balance to a revenue account rather than creating a refund.
How Is Deposit Accounting Tracked Over Time?
Buildium tracks security deposit accounting through liability reports and tenant ledger histories. Property managers can view deposit balances, transactions, and aging reports at any time.
The Security Deposit Liability Report shows total deposits held by property and tenant. This report helps with compliance and provides proof of proper fund handling during audits.
Monthly reconciliation ensures deposit records match bank balances. Compare the liability report total to actual funds in deposit accounts. Any discrepancies require investigation and correction.
Buildium maintains a complete transaction history for each deposit. Property managers can track:
- Initial deposit receipt
- Interest earned (where required)
- Partial refunds
- Final disposition
Year-end reporting includes security deposits on financial statements. The liability balance appears on the balance sheet, while any forfeited deposits show as income on profit and loss reports.
Financial Reporting And Reconciliation
Property managers need accurate financial reports and proper reconciliation to track income, expenses, and maintain compliance. Monthly reviews of key reports and systematic bank reconciliation prevent errors and ensure audit readiness.
Which Financial Reports Should Property Managers Review Monthly?
Property managers should focus on three essential reports each month. The income statement shows rental income, operating expenses, and net profit for each property.
The balance sheet displays assets, liabilities, and equity at a specific point in time. This report helps track security deposits and outstanding tenant balances.
Cash flow statements track money moving in and out of properties. These reports show rent collections, vendor payments, and operating expenses by property or portfolio.
Monthly Report Checklist:
- Income statements by property
- Balance sheet with current liabilities
- Cash flow statements
- Tenant aging reports
- Vendor payment summaries
Property managers should review financial reports within five days of month-end. This timing allows for corrections before quarterly reviews.
How Does Bank Reconciliation Work In Buildium?
Bank reconciliation matches transactions in Buildium with actual bank statements. The system imports bank transactions automatically through connected accounts.
Property managers compare imported transactions with recorded entries in Buildium. Unmatched items require investigation and correction.
Reconciliation Steps:
- Import bank transactions
- Match deposits to rent payments
- Verify expense transactions
- Identify unmatched items
- Make necessary adjustments
Buildium flags discrepancies between bank records and system entries. Property managers must resolve these differences before completing reconciliation.
The platform tracks reconciliation status for each account. Managers can see which accounts need attention and when reconciliation was last completed.
What Steps Ensure Reports Are Audit-Ready?
Audit-ready reports require complete documentation and proper categorization. Property managers must ensure all transactions have supporting documents attached.
Documentation Requirements:
- Receipts for all expenses
- Lease agreements for income
- Bank statements for deposits
- Vendor invoices and payments
Financial statements need consistent account coding across all properties. Property managers should use standardized expense categories and income classifications.
Monthly reconciliation must be completed before generating reports. Unreconciled accounts create inaccurate financial reporting that fails audit requirements.
Property managers should maintain backup files of all financial data. Regular data exports protect against system failures and provide additional audit documentation.
Reports must show clear audit trails from source documents to final statements. This transparency helps auditors verify transactions and reduces review time.
Tips For Beginners Using Buildium Accounting
New property managers often struggle with accounting software setup and maintaining accurate financial records. The most critical areas to focus on include avoiding data entry errors, creating efficient monthly workflows, and knowing where to get help when needed.
What Are The Most Common Mistakes To Avoid?
Data Entry Errors represent the biggest threat to accurate financial records. Property managers frequently enter rent payments in wrong tenant accounts or misclassify maintenance expenses. These mistakes compound quickly and create major problems during tax season.
Chart of Accounts Setup requires careful attention from the start. Many beginners create too many expense categories or fail to separate operating expenses from capital improvements. This makes tax compliance and reporting much harder later.
Bank Reconciliation Delays cause serious cash flow problems. Property managers who wait weeks to reconcile their bank accounts often discover missing deposits or unauthorized charges too late to fix them easily.
Security Deposit Tracking mistakes lead to legal issues with tenants. Mixing security deposits with operating funds violates regulations in most states and creates accounting nightmares.
Monthly Closing Procedures get skipped when managers feel overwhelmed. This creates a backlog of unrecorded transactions that becomes impossible to sort out accurately.
How Can You Streamline Your Accounting Workflow?
Automated Rent Collection eliminates most manual data entry. Set up ACH payments and online portals to reduce check processing time by 80%. This also improves cash flow since electronic payments clear faster than checks.
Recurring Expenses should be automated wherever possible. Property insurance, management fees, and utility bills can be scheduled in advance. This prevents missed payments and late fees.
Monthly Task Lists keep important deadlines visible. Create a checklist that includes:
- Process all rent payments
- Enter maintenance invoices
- Pay vendor bills
- Reconcile bank accounts
- Generate owner statements
Document Organization saves hours during tax preparation. Scan all receipts immediately and attach them to the correct expense entries. Use consistent naming conventions for easy searching.
Regular Backup Procedures protect against data loss. Export financial reports monthly and store them in multiple locations. This creates a paper trail that auditors and tax preparers appreciate.
Where To Find Additional Training And Support?
Buildium Academy offers comprehensive training modules designed specifically for property managers. The platform includes video tutorials, practice exercises, and certification programs that cover both basic and advanced accounting topics.
Live Support Options provide immediate help when urgent issues arise. Phone support handles complex problems faster than email tickets. Use chat support for quick questions about specific features or functions.
User Community Forums connect property managers with similar challenges. These forums often contain solutions to common problems and real-world examples of property management accounting best practices.
Professional Bookkeeping Services make sense for busy property managers. Many accounting firms specialize in real estate and understand tax regulations, deductions, and compliance requirements better than general bookkeepers.
Continuing Education Programs help managers stay current with changing tax laws and accounting standards. Many state licensing boards require ongoing education that can be satisfied through accounting-focused courses.
Local Real Estate Groups provide networking opportunities with experienced property managers. These connections often lead to practical advice about budgeting, forecasting, and handling complex accounting situations.
Frequently Asked Questions
Property managers commonly ask about setting up accounting structures, generating financial reports, maintaining GAAP compliance, and learning basic accounting functions within Buildium. These questions focus on transaction handling, report generation, and understanding core job responsibilities for property management accounting.
How can I set up a fundamental accounting structure within Buildium for property management?
Property managers can establish their accounting foundation by configuring the chart of accounts first. The system allows customization of income and expense categories to match specific property types and business needs.
Management fee policies require initial setup to define how fees are calculated and allocated across properties. This includes establishing management income accounts and non-commissionable income accounts.
Property managers should create separate accounts for each property to maintain clear financial separation. The general ledger structure should reflect assets, liabilities, equity, revenue, and expense categories specific to property management operations.
Bank accounts must be linked to enable automatic transaction imports and reconciliation. This connection streamlines the recording process and reduces manual data entry errors.
What are the key financial reports used in property management accounting with Buildium?
Property managers rely on profit and loss statements to track income and expenses for each property. These reports show rental income, operating expenses, and net operating income over specific time periods.
Cash flow reports display actual money movement in and out of accounts. This differs from accrual-based reports by focusing on when cash transactions occur rather than when they are earned or incurred.
Balance sheets provide snapshots of assets, liabilities, and equity at specific points in time. Property managers use these to assess financial position and property values.
Rent rolls summarize tenant information, lease terms, and payment status across all properties. These reports help track occupancy rates and identify delinquent accounts.
In what ways does Buildium assist with GAAP compliance for property management?
Buildium supports accrual accounting methods that align with Generally Accepted Accounting Principles. The system records transactions when they occur rather than when cash changes hands.
The software maintains proper documentation trails for all financial transactions. This includes detailed records of income, expenses, and adjustments that auditors require for compliance verification.
Depreciation calculations can be tracked and allocated properly across multiple accounting periods. This helps property managers spread asset costs over their useful lives as GAAP requires.
Revenue recognition features ensure rental income is recorded in the correct accounting periods. Late fees, security deposits, and other charges are categorized appropriately for accurate financial reporting.
What introductory courses are recommended for learning property management accounting on Buildium?
Property managers can access built-in tutorials covering accounting basics, setup procedures, and daily operations within the software. These step-by-step guides cover essential features without requiring external training.
The platform offers specific modules for accounting functions, including transaction recording, report generation, and bank reconciliation processes. Each module includes practical examples relevant to property management scenarios.
Video tutorials demonstrate real-world applications of accounting features within Buildium. These visual guides help property managers understand complex processes like allocation and expense recovery.
Practice exercises allow users to test their knowledge before implementing accounting procedures on live data. This hands-on approach builds confidence in using the system effectively.
How does Buildium handle property accounting and what are some examples of typical transactions?
Rent collection transactions are recorded automatically when tenants make payments through the system. These entries update accounts receivable and cash accounts simultaneously.
Maintenance expense transactions can be entered manually or imported from vendor invoices. The system allows allocation of these costs to specific properties or units for accurate expense tracking.
Security deposit handling includes separate liability accounts to track tenant deposits. When tenants move out, these amounts can be applied to damages or refunded appropriately.
Utility bill payments are recorded as operating expenses and can be charged back to tenants when applicable. The chargeback feature automates the process of recovering these costs from responsible parties.
What should a beginner know about the job responsibilities of accounting in property management when using Buildium?
Daily tasks include recording all financial transactions, from rent payments to maintenance expenses. Property managers must ensure accurate categorization of each transaction for proper financial reporting.
Monthly responsibilities involve bank reconciliation to match accounting records with bank statements. This process identifies discrepancies and ensures cash balances are accurate.
Tenant billing requires creating and sending invoices for rent, late fees, and other charges. The system automates many of these processes while allowing manual adjustments when necessary.
Financial reporting duties include generating monthly profit and loss statements, cash flow reports, and tenant summaries. Property owners expect these reports to be accurate and delivered on schedule.

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