Why Xero is the best accounting software for Rental Property?

Why Xero is the best accounting software for Rental Property?

The number of landlords in UK has been on the rise since 2019 despite COVID-19 recession and there’s 15.3% projected price increase on property by 2024, a reason why many has chosen to invest in property.

Whether you manage a single property or a large property portfolio, you must be looking for the best software that can handle the accounting part of management, you might want to consider Xero for Landlords. Xero has launched this with dedicated features to make property owners lives easier. They consider it the best and most efficient accounting software for landlords and here’s why:

When it comes to taxes investing in good accounting software is a must

Making Tax Digital (MTD) will come into effect in April 2023 and is applicable to all landlords with annual property income exceeding £10,000. That’s referring to Income, not Profit, and most property owners will be affected.

HMRC will require sending updates every 3 months and this means landlords should keep digital records for all property income and expenses. This is where an advisor and a good accounting software is essential. Here’s how Xero can help in managing property income efficiently:

·        Check and manage rental payments with open banking. User can link their bank account directly to Xero.

·        User can save time since Xero has task automation and other features like bank feeds and digitize receipts.

·        User have access to real time records on the go from any device, this is available in iOS, Android and desktop.

·        Import data and Xero will keep it permanently secure. In preparing for year-ends accounts and tax returns, it can provide and easily gather data for the user and no longer need to seek out for paperworks.

Accounting software can help in reporting your numbers

Xero has lots of ways to analyse and view user’s numbers. Since Cheylesmore Accountants is a Xero Gold Partner, we do have access to property rental list of accounts that you can use in recording your transactions correctly. We can also set your Xero account to keep track of transactions such as deposits and expenditures on each property that you have, and to help you determine how profitable each property. By having the best information, it is easier to make decisions. Xero has dedicated templates that can assist in management decisions, and this includes:

·        Summary and detailed income & expense reports; the dashboard gives financial overview displaying cashflow and overdue rent

·        Per property detailed reports

·        Other valuable insight reports. 

How to Start and Set Up Xero for BTL?

In setting up Xero to account your books, it can be a bit of a challenge since the software itself comes with a high learning curve, but once you’re done with set up and used it fairly in a while it will be quick and make your accounting easier.

Xero also offer comprehensive support through articles written by their expert team to help you get started.

The start of a new year is a perfect time in switching to accounting software, we are offering packages in setting up your Xero account. If you would like to know more, get in touch now with Cheylesmore Accountants.