ACCOUNTING AND FINANCIAL REPORTING
It’s noon on April 15th and your CPA has been asking for your rental property financials for months. Now is a bad time to be pouring through a shoebox full of receipts and printing invoices from your Amazon account. What’s that rule about filing 1099 forms for contractors again?
TIMELY, STRESS-FREE, ACCOUNTING AND FINANCIAL REPORTING
At Boomtown we make it easy to pull-down the financial information you need on demand. Income statements are posted to online owner portals each month. All back-up documentation (e.g., invoices and receipts) are scanned and uploaded to our secure file share site for your review. All questions answered the same day or within 24 hours.
Weekly:
– Payables Reviewed, Verified and Processed for Payment
– Supporting Documentation Uploaded to Secure File Share
Monthly:
– Bank Accounts Reconciled
– Owner Distributions Processed
– Income Statements Uploaded to Owner Portal
Annually:
– File Required IRS Forms for Contractors Paid
– End of Year Income Statements Uploaded to Owner Portal
Professional Financial Statements
Boomtown financial statements include a summary at the top of the report and detailed accounting of each transaction including a description at the bottom of the report for easy comprehension.
You don’t need to be a CPA to understand our statements, and double entry accounting with debits and credit is confusing to EVERYONE! Our financial statements are designed to look similar to a checkbook register showing “Cash In” and “Cash Out” with a running balance total.
We understand reading financial statements can be difficult (and potentially frustrating) which is why we give owner accounting questions the highest priority – all questions answered the same day or within 24 hours.
Professional Bookkeeping
Bookkeeping for a property management company is no simple task – and Boomtown employs the best! Some property income is subject to management fees – some is not (e.g., water bill reimbursement). Some money we receive is treated as income, some is not (e.g., security deposits).
Our bookkeepers are experts on how to account for and record every financial nuance for your property. They are both subject matter experts in accounting and our property management system to ensure you have the most complete and accurate financial record for your property.
Finally, we take the burden off you for security deposit administration and adjudication – which is a full-time job by itself. Maryland law requires very specific handling of tenant security deposits and the mishandling of these security deposits can be costly. Damages for mishandling this money can lead to tenant awards totaling 3x the original collected deposit. We collect, account for, and return security deposits based on our deep knowledge of the law and best practices shaped through years of experience. We take the burden of collecting and accounting for this money so you can sleep well at night!
From rent collection to security deposit administration let our experts go to work for you!
Monthly Reconciliation
With the rise of digital transactions and the decline in the use of paper checks, monthly bank account reconciliations have become a thing of the past for most consumers. Not so for Boomtown!
Monthly reconciliations of all property owner accounts is a best practice that will never get old. We regularly find errant changes, and double charges – we even uncovered check fraud during one reconciliation.
Even if you don’t have the time to reconcile your own bank account, with Boomtown you can rest-assured all of your rental income is property accounted for using monthly reconciliations.
Expense Documentation
You’ve received the dreaded IRS letter requesting back-up documentation for expenses related to your tax return. What now? Is this an audit?
Trust but verify. Back-up documentation for all expenses is housed on our secure file share and available to our property owners 24/7. As part of our “payables” process all invoices and receipts related to an expense are scanned, and uploaded to our file share so they are available before distributions on the 15th of each month.
Whether it’s the IRS or a detail-oriented business partner, Boomtown provides easy access to be able to download and share invoices and receipts to provide financial transparency for all inquiries. We regard this facet of our service as a key differentiator from our competitors. Many of our property management peers will mail hardcopies or email invoices and push the responsibility of expense documentation back to the property owner. At Boomtown we thoughtfully name each invoice to include the cost, a short description and the date for a quick reference if needed. Finally, we use software to automatically route each file into its respective property folder organized by tax year.
IRS Reporting
Improperly accounting for / reporting contractor expenses to the IRS can be a HUGE liability.
All expenses over $600 paid to contractors are required to be reported to the IRS using Form 1099 on a timely basis. 1099 Forms should be received by contractors before January 31st and filed with the IRS by March 31st for payments made in the previous year. Failure to report contractor payments using a Form 1099 could result in a tax liability for undocumented payments.
At Boomtown we shoulder the full burden of accounting for and documenting payments made for any work performed on properties under Boomtown management. Boomtown files all necessary 1099 tax forms with the IRS and provides a copy to the respective contractor.