Keep it Clean

As each day passes EOFY is getting closer and closer and our days of procrastinating on those niggling overdue admin tasks are limited.

Let’s admit, we have all had those thoughts of doing a big spring clean on all our systems and procedures. To clear the clutter and make room for some organisation. A fresh start, and the start of the new financial year is good motivation.

Leading the way on many Property Managers’ lists is cleaning up your trust accounting databases. Having clean databases is like having a clean house at the start of the week. It helps you feel organised knowing that everything is in its place. As a result, it minimises unwanted stress and sets you up for effective reporting practices for the year.

Is it really worth the effort?

The short answer is yes!

Having well maintained and clean databases will help your business run more effectively and minimise the time it takes you to find client records and make reporting a breeze.

Here’s why having an organised trust accounting database will assist you this new financial year:

  1. First of all, it will save you time and hassle! You can find what you are looking for quicker, especially without having to wade through outdated information.
  2. Your data is current and will allow you to produce clean reports for arrears management and to distribute stakeholder reports.
  3. Allows for simple production of a clean transaction when selling the rent roll.
  4. It allows you at a glance to see the exact number of properties you manage.
  5. It streamlines your reports and how they display visually. Your correspondence is consistent and free of any merge errors such as how you display addresses.
  6. When your property managers change or move on, it allows for a much simpler handover.
  7. It allows you to see at a glance the creditors on your books.
  8. You’ll save the environment by minimising the amount of paper used by printing irrelevant data.
  9. Finally, it allows for the delivery of clean and professional owner statements.

Where do I start?

First of all, the easiest way to clean up your databases is systematically running through a series of reports that will assist with your clean up.

Give these reports a go to start:

  1. Active creditor list

Do you deal with all the creditors on the list? Property Managers often set tenants up as creditors to do a rent refund but then neglect to inactivate them once a payment is made.

  1. Active property list

Do you manage every property on the list? Then ensure that all the properties on this list are active and you can adjust any inactive properties. This will allow you to see how properties are displaying on owners statements and correspondence.

  1. Active client list

Clean up the way you display names, addresses and contact information so you ensure your reports always present professionally and accurately.

  1. Chart of Account list

This will allow you to archive all the codes you don’t use for your account payments to minimise unwarranted data and misallocating the wrong code when processing invoices in your software.

  1. Preview EOFY statements

Previewing your EOFY statements will allow you to clean up any misallocated expense and revenue items in advance before sending out to your clients.

Lastly, archive any vacated tenancies so they don’t show up when searching active managements.

Use the EOFY as motivation to get your trust accounting databases sorted so you can start the new financial year with your best foot forward.

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~ Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. Jane knows the legislative requirements of running a successful Real Estate office through her 19 years industry experience. Don’t trust just anyone with your trust accounting. Trust End of Month Angels and get back to what you do best – growing your business.