Handling Bad Debt in AppFolio

December 13, 2022
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To write off or to not write off... That is the question

Let's say a tenant has moved out leaving a $400 balance of bad debt on their tenant ledger. The property manager feels that they will never see payment for the $400 balance. They are not sure how to account for a tenant’s bad debt in AppFolio. What do they do?

Consider your standard operating procedure

When we consider a tenant’s bad debt, the first thing you’ll want to consider is your company’s policy surrounding the standard operating procedure for such a situation. How does your company typically handle a tenant’s bad debt?

When this type of situation occurs, is it written off to bad debt? Or is the balance left on the account so that it will continue to report to the credit bureau? If the policy for a tenant’s bad debt is to be written off as bad debt by classifying to a bad debt account, does the company have the appropriate GL account in place?

Does your company report bad debt to a collection agency? Hunter Warfield is fully integrated with AppFolio, which makes collections easy.

Bad debt doesn’t have to be complicated

A tenant’s bad debt doesn’t have to be complicated, and we are here to help simplify things. Bad debt is just one of many things APM Help can assist with. We typically respond in under 10 minutes!

Let us be the experts in your corner for property management trust accounting. Call us today to see how we can help. We provide services such as Private Consultations, Daily Bank Recs, and Full-Service Bookkeeping that are vital to your day to day operations.

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Our consultants are well-versed in the software solutions commonly used in property management. Whether you're using AppFolio, Buildium, Propertyware, or Rent Manager, we have the expertise to clean up your books and maintain their accuracy.

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As your business grows, so do your accounting needs. Our U.S.-based account managers with industry experience are dedicated to managing your books, giving you the time and confidence to focus on expansion.

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Going through an audit can be a daunting task. We offer daily audits and audit preparation services to ensure your books are always audit-ready, providing you with peace of mind.

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Beyond bookkeeping, we offer a range of back-office services to streamline your operations, including maintenance coordination, property improvement loans, and corporate bookkeeping.
Your Success, Our Priority
APM Help is not just a service provider; we are your partners in success. We understand thatproperty management demands a holistic approach, which is why we offer a suite of services tailoredto address the diverse needs of your business. Our goal is to empower property managers to excel intheir markets by providing them with clean books, efficient processes, and the time they need tofocus on building strong client relationships and achieving their growth ambitions.

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