Monday, August 19, 2013

Step On It: Record Keeping

The only way to know how your business is doing is to have updated record keeping. For me, record keeping includes the bookkeeping as well as keeping track of all the details for each properties we own.

For our rentals, I keep a spreadsheet with the details of the tenants, the rent collected, all the expenses and the debt repayment. I keep such a spreadsheet for each property for each year. As my property managers send me their report, I transfer the information of the income they have collected and the expenses they where in charge of. I keep most expenses in my control but the management fees and any maintenance fees I leave in their care. Before any major maintenance they contact me with a quote for approval. This system works for me, since I keep the control. Should I ever list one of my properties to sell, I have all the information ready to go.

The struggle is to keep on top of it. It is easy to get behind and to just randomly update our records. I'll admit that is a struggle for me. With work, and kids and life in general it's easy to put this on the back burner.

So I'll make a half way through the year and then some resolution. I shall catch up to my record keeping and maintain it. The kids are about to go back to school, I'm hoping having days to myself will enable me to catch up.