It’s the most stressful time of the year for finance folks like us, who are laser-focused on year-end close. Rent Manager customers are trying to close all open bills and maintenance and vendor requests before 2019. Luckily, we have a few tips to share with you to ensure a smooth year-end.
1.) Clean up the master vendor file before 2019. Throughout the year, the master vendor file is cluttered with duplicate vendors, inactive vendors, and missing vendor details. Here are some easy ways to clean up the long list of vendors for efficiency’s sake.
- Start by combining and updating. Using Rent Manager’s 1099 Adjustment Tool, you can easily verify that your information is accurate and ready for filing. Consolidate vendor files that have multiple records for the same business. As a best practice, name the vendor as their tax forms state— free from abbreviations. Verify and update any missing data including phone numbers, emails, and addresses.
- Archive inactive vendors. If your company hasn’t used a vendor in nearly two years, they should be archived. You’ll have a shorter list of vendors to ease searchability and decrease invoice processing time.
- Implement vendor verification processes. Top-performing property management companies partner with firms like AvidXchange to offer self-service portals to improve efficiency and accuracy.
2.) Don’t forget to include industry changes in 2019’s budget. The real estate industry is rapidly growing. Your team may have budgeted for additional headcount and more resources, but there’s bound to be new property opportunities and regulations that your team may not have factored in. To stay ahead of the industry’s growth, be sure to include innovative tools and technology in your annual budget request. Being proactive saves your company from future property management problems and prepares your company to operate more efficiently.
3.) Get buy-in for FinTech before the new year rolls around. FinTech is on the rise for the real estate industry, but why?
- Mobility – Cloud-based software, such as AP automation, allows users to approve bills, disburse payments, and respond to vendor inquiries anytime, anywhere with just the click of a button.
- Big Data – Implementing data and analytics software allows your team to focus on the right insights, including sales and spend, without the feeling of ‘information overload.’
- Collaboration – Start by asking your property management software provider about communication features to reduce cost and improve efficiency. Don’t forget to prioritize security and data privacy while you’re at it.
4.) Automate the bill payment process before December 31st. AP and Payment automation streamlines the invoice and payment process, saving both time and money. AvidXchange is integrated with Rent Manager to improve centralization, visibility, and reduce your risk of fraud. All invoice and payment information is readily available to expedite year-end close, tax preparation, and audits.
5.) Start the Business Intelligence journey now for next year. Business Intelligence (BI) helps predict the future of your finances. Starting the new year with BI allows property managers to use existing data to gain valuable insights and make data-driven decisions. Your team will have the power to track data in real-time, and easily drill down to the metrics that matter most, including costs, properties, and revenue.
It’s never too early to start year-end prep. Your team is juggling 1099s, payroll, and vendor invoices year-round. For many property managers, year-end is the most nerve-racking season. Here are a few simple tips to alleviate the stress.
- Start early! The year-end process shouldn’t start in November. Schedule regular meetings to discuss expectations and priorities throughout the year.
- Make it a team effort. Pair seasoned teammates with new ones to learn processes and tips from the best and brightest.
- Show consideration and appreciation. Schedule check-ins to discuss workload. Someone’s always willing to help!
The end of the year is near and teams are preparing for the most stressful season yet. Thankfully, the AvidXchange End of Year Survival Guide ensures that you make the most of year-end closing. Our guide shares best practices, top tech picks, and efficiency tips that reduce year-end headaches and hurdles before the holiday season.
Article Contributed by AvidXchange’s Brian Thayer
Brian Thayer is the Director of Real Estate Sales at AvidXchange. Thayer has led many automation projects to improve business efficiency and decision-making. He works directly with leaders to develop strong partner relationships and offer simple solutions to everyday B2B problems.