Running properties in Toronto is no small feat. Between tenant calls, repairs, and late-night emergencies, it is easy to let accounting slide to the back burner. The problem? Even small mistakes can snowball into costly headaches.
Mistake #1: Mixing Personal and Business Expenses
Many property managers swipe the same card for groceries and roof repairs. This makes it nearly impossible to track accurate expenses come tax season.
💡Pro Tip: Open a dedicated business bank account and credit card. It will save you time and stress when reconciling monthly statements.
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Mistake #2: Ignoring Cash Flow
Collecting rent feels great, but if funds are tied up in repairs or you are waiting on late tenants, you may find yourself short when bills are due.
💡 Pro Tip: Create a simple cash flow forecast that maps rent inflows against recurring costs like maintenance, utilities, and mortgages. This gives you peace of mind and ensures you are never caught off guard.
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Mistake #3: Poor Record Keeping
Losing receipts or forgetting to track mileage may not seem like a big deal now, but those little slips can cause you to miss out on big deductions.
💡Pro Tip: Go digital. Use an app that scans and organizes receipts instantly. No more shoebox accounting.
Mistake #4: Not Tracking KPIs
Property managers often focus only on rent collection. But what about occupancy rates, repair costs per unit, or tenant turnover trends? Without these insights, you could be bleeding money without realizing it.
💡Pro Tip: Start small. Track one or two KPIs each month. Even simple trends can help you make smarter financial decisions.
Mistake #5: DIY Accounting Forever
Handling the books on your own may work when you have one or two properties, but as your portfolio grows, so does the complexity. Lease agreements, HST filings, payroll for staff, and reporting for lenders all require professional oversight.
👉 This is where financial controller services can really change the game. With one, you get clarity, cost savings, and strategy.
Conclusion: Set Yourself Up for Success
The earlier you catch accounting mistakes, the faster your business can grow with confidence.
📩 Contact Vistance Today
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