AppFolio vs. Buildium: Which Offers Better Accounting Tools for Property Managers?

Property managers are responsible for a range of tasks related to your property—working with tenants to take care of your communication, reviewing financial statements and reporting, managing maintenance requests, and collecting rent—but ensuring that the right numbers are being tracked is among the most critical parts of their daily work. That’s what property management accounting software such as Buildium and AppFolio are for.

However, when considering AppFolio vs. Buildium, which accounting tools are the best? To simplify your decision-making process, we will do a deep AppFolio-Buildium comparison, especially on the accounting features.

The Importance of Accounting Features for Property Managers 

Property managers are deeply immersed in the realm of accounting. It goes beyond just adding up figures; it’s about protecting the financial foundation, governance, and integrity of the organization. You will be responsible for the reputation and success that will depend on your ability to manage revenue, keep costs down, and prepare accurate reports that you will manage any number of rental units or hundreds of rental units. Comprehensive accounting capabilities are a requirement for property management due to the following reasons:

Transparent Financial Reporting 

Property managers are answerable to investors, owners, and sometimes homeowner associations. Timely and transparent financial reports, including income statements, balance accounts, and cash flow reports, foster transparency and trust. Good software automates these reports to keep human error as minimal as possible and save time.

Simplify Rent Collection and Income Tracking 

When rent is collected manually, it can be common to experience overdue rent payments, cash flow issues, and administrative burdens. Automated systems allow tenants to make rent payments online and have the transactions automatically entered into your records. This method streamlines things and makes it easier to track income month to month.

Payment of Vendor and Management of Expenses

It is often challenging to keep track of maintenance costs, utility bills, and vendor payments without the right tools. Accounting functions such as recurring invoices, digital payments, and expense categorization facilitate the management of expenses and help ensure that vendors are paid on time.

Reconcile with the Bank to Avoid New Mistakes

A bank reconciliation makes sure that the records that you have match all the actual transactions that your bank processed. During this vital process, it detects anomalies and prevents financial mismanagement or fraud before it can occur. Today’s property management software now offers automated bank sync and reconciliation features, streamlining the workflow.

Annual Reporting & Tax Obligations 

Tax documents like the 1099s and other associated statements, which provide owners with an accurate year-end summary, are essential to achieving compliance. These documents require sign-off from an authorized company representative, which has at least a nominal risk of non-compliance with penalties; freelancers are spared from the anxiety and mental strain of tax season.

Accounting Features in AppFolio vs. Buildium 

Let’s take a look at the accounting tools offered by both platforms.

AppFolio Accounting Features 

AppFolio is known for its modern interface and all-in-one nature. But in terms of what it provides in the accounting department:

Automatic Rent Collection: Rent can be paid online by tenants using ACH transactions, credit/debit cards, or AppFolio vs. Buildium. Who Offers the Most Complete Accounting Features for Property Managers? 

Property managers are responsible for a range of tasks related to your property—working with tenants to take care of your communication, reviewing financial statements and reporting, managing maintenance requests, and collecting rent. But ensuring that the right numbers are being tracked is among the most critical parts of their daily work. That’s what property management accounting software such as Buildium and AppFolio are for.

However, when considering AppFolio vs. Buildium, which accounting tools are the best? To simplify your decision-making process, we will do a deep AppFolio-Buildium comparison, especially on the accounting features.

The Importance of Accounting Features for Property Managers 

Property managers are deeply immersed in the realm of accounting. It goes beyond just adding up figures; it’s about protecting the financial foundation, governance, and integrity of the organization. You will be responsible for the reputation and success that will depend on your ability to manage revenue, keep costs down, and prepare accurate reports that you will manage any number of rental units or hundreds of rental units. Comprehensive accounting capabilities are a requirement for property management due to the following reasons:

Transparent Financial Reporting 

Property managers are answerable to investors, owners, and sometimes homeowners associations. Timely and transparent financial reports, including income statements, balance accounts, and cash flow reports, foster transparency and trust. Good software automates these reports to keep human error as minimal as possible and save time.

Simplifying Rent Collection and Income Tracking 

When rent is collected manually, it can be common to experience overdue rent payments, cash flow issues, and administrative burdens. Automated systems allow tenants to make rent payments online and have the transactions automatically entered into your records. This method really streamlines things and makes it easier to track income month to month.

Payment of Vendor and Management of Expenses

It is often challenging to keep track of maintenance costs, utility bills, and vendor payments without the right tools. Accounting functions such as recurring invoices, digital payments, and expense categorization facilitate the management of expenses and help ensure that vendors are paid on time.

Reconcile with the Bank to Avoid New Mistakes

Bank reconciliation makes sure that the records that you have match all the actual transactions that your bank processed. During this vital process, it detects anomalies and prevents financial mismanagement or fraud before it can occur. Today’s property management software now offers automated bank sync and reconciliation features, streamlining the workflow.

Annual Reporting & Tax Obligations 

Tax documents like the 1099s and other associated statements, which have an accurate year-end summary for owners, are essential to achieve compliance. These documents require sign-off from an authorized company representative, which has at least nominal risk of non-compliance with penalties; freelancers are spared from the anxiety and mental strain of tax season.

Accounting Features in AppFolio vs. Buildium 

Let’s take a look at the accounting tools offered by both platforms.

AppFolio Accounting Features 

AppFolio is known for its modern interface and all-in-one nature. But in terms of what it provides in the accounting department:

• Automatic Rent Collection: Rent can be paid online by tenants using ACH transactions, credit/debit cards, or eChecks.
• Bank Reconciliation: Automatically reconcile transactions with your bank statement.
•  Cash-Based Accounting and Accrual Accounting: Choose your accounting system. Owner & Vendor Portals: Communicate payment particulars and financial statements directly.
• Advanced Reporting: Create on-demand financial reports such as balance accounts, income statements, and cash flow statements.
• Custom Account Chart: Adjust the structure of your account chart to fit your business.

Buildium Accounting Features

The accountancy function kicks in in Buildium also, as one of the better-value property management accounting software options.

Buildium works well, particularly for small portfolios and associations.

Safe Online Payments: Both owners and tenants can pay through the online payment method.

Automated Payment Services: Use automated alerts to reduce late payments.

Recurring Bills and Payables: Schedule and track vendor payments with ease.

Bank Reconciliation Tools: Ensures accounting accuracy with integrated reconciliation.

Owner and Association Reporting: Easily transmit comprehensive financial statements with a single click. 1099 Filing Services: Manage end-of-year tax forms without exiting the platform.

Budgeting Instruments: Establish and monitor budgets to preserve financial stability.

Which Property Management Software Has Better Accounting Tools?

Benefits of AppFolio: more suitable for medium- to large-sized portfolios. Improved reporting functionality. Highly flexible accounting functions. More strongly for accrual-based accounting.

An advantage of Buildium is that it is less expensive for smaller portfolios. And, for readers who are new to property management software, it is easy to learn. Perfect for homeowner associations and condominium associations. Strong budgeting tools for financial visibility.

Buildium vs. AppFolio: A Comparison Guide for Property Managers

Depending on the size, complexity, and budget of your business, the decision you make will have a big impact. If you need a highly customizable solution, require detailed financial reporting, and manage a large number of units, choose AppFolio. Choose Buildium if you are a community association manager who values simplicity and budget, manages a smaller portfolio, or needs more cost-effective software.

Concluding thoughts 

While AppFolio and Buildium both provide a strong accounting component, they have different strengths that will resonate with different needs. Having access to the specific features in alignment with your operations, reporting needs, and growth objectives is paramount to evaluating property management accounting software. The best software is the one that increases accuracy, saves you time, and grows along with your business. Whether you favor Buildium’s blistering ease of use or AppFolio’s advanced tools, they are both serious players in property management.