Stessa Bookkeeping

Managing property finances can be daunting, but with Stessa, you can simplify the entire bookkeeping process. This blog explores how Stessa helps property managers and landlords streamline bookkeeping tasks while offering key features such as income and expense tracking, vendor payments, and rent collection.

What is Stessa Bookkeeping?

Stessa is a free property management software designed specifically for real estate investors. It automates bookkeeping tasks like tracking rental income, expenses, and tax preparation, making it a popular choice for landlords looking to manage their properties efficiently. Stessa’s capabilities extend beyond basic bookkeeping, helping property managers reconcile accounts, handle vendor payments, and manage rent collections.

Key Features of Stessa Bookkeeping

Automated Income and Expense Tracking

Stessa automatically tracks income and expenses like rent, taxes, insurance, utilities, and HOA fees by syncing with your bank accounts and credit cards. This automation saves time and helps you monitor your cash flow effortlessly.

Comprehensive Financial Dashboard

Stessa offers a financial dashboard that gives landlords a real-time snapshot of their property’s performance. You can monitor key metrics such as cash flow, net income, and occupancy rates, enabling smarter investment decisions.

Account Reconciliation

Stessa’s automatic transaction imports help with account reconciliation by categorizing expenses and income. You can review and confirm each transaction, making it easy to spot any discrepancies between your bank statements and property management data.

Paying Bills from Vendors

While Stessa records vendor expenses like repairs, maintenance, or utility bills, it does not support direct payments to vendors. You’ll need to handle payments separately via your bank or payment platforms, but Stessa allows you to track these payments efficiently.

Generating Rent Invoices and Managing Collections

Stessa doesn’t generate rent invoices directly, but it tracks rent payments and syncs with your bank to categorize them as income. It can also help you manually track overdue rent and manage collections, although invoicing and tenant communication may require additional tools.

Depreciation Tracking

Although Stessa doesn’t automatically calculate depreciation, you can manually input depreciation schedules to include in your financial reports for accurate tax filings.

Tax Reporting and Schedule E Generation

Stessa organizes your income and expenses into an accountant-ready format, generating reports such as Schedule E to make tax preparation easier.

Why Use Stessa for Bookkeeping?

Using Stessa for bookkeeping offers several advantages for property managers:

• Time Savings: Automated financial tracking eliminates manual bookkeeping tasks.
• Accuracy: Stessa’s categorization reduces human errors, keeping your financial data organized.
• Reconciliation: Regularly reconcile transactions to ensure accuracy between bank accounts and property records.
• Vendor Payment Tracking: Easily track expenses related to vendors, although payments need to be processed outside Stessa.
• Rent Tracking: Manage rent collections, but rent invoicing may require other tools.
• Tax Preparation: Stessa organizes tax reporting, including generating Schedule E for easy filing.

How to Use Stessa for Property Management Bookkeeping

Create an Account and Add Your Properties

Start by signing up for a free account on Stessa’s website. Once registered, you can add property details such as purchase price, mortgage information, and rental income. Stessa organizes your financial data by property, making it easy to track income and expenses at the individual property level.

Sync Your Financial Accounts

Link your bank accounts and credit cards to Stessa for automatic transaction tracking. Stessa will import and categorize transactions, saving you time on manual data entry.

Monitor Financial Performance

Use the financial dashboard to monitor each property’s performance. Keep track of cash flow, net income, and other financial metrics to help manage your properties effectively.

Reconcile Accounts

Review your transactions regularly to ensure all income and expenses are categorized correctly and match your bank statements. Stessa flags any discrepancies, ensuring your financial records are accurate.

Track and Manage Vendor Payments

Record vendor expenses like maintenance or repairs within Stessa to keep your expenses organized. However, actual payments to vendors must be made separately, as Stessa doesn’t support direct payments.

Generate Rent Collection Reports

While Stessa tracks rent payments, managing collections and generating invoices may require additional tools. However, Stessa helps you track paid and overdue rent effectively.

Generate Tax Reports

Use Stessa’s built-in tools to generate tax reports, including Schedule E, for stress-free tax filing.

Stessa Bookkeeping vs. Other Property Management Tools

Stessa is a powerful tool for automating property management bookkeeping, but how does it compare to other property management platforms?

Is Stessa Bookkeeping Right for You?

If you’re a landlord or property manager looking for a free, easy-to-use platform that automates property management bookkeeping, Stessa is a great choice. However, for managing vendor payments or generating rent invoices, you may need supplemental tools.

Final Thoughts on Stessa Bookkeeping

Stessa simplifies property management bookkeeping with automated income and expense tracking, financial reporting, and tax preparation tools. While it doesn’t handle direct vendor payments or rent invoicing, its strengths in bookkeeping and tax reporting make it an excellent choice for landlords and property managers with small to medium-sized portfolios.