Commercial Property Management
ACCOUNTING, FINANCIAL SERVICES & REPORTING
Accurate And Reliable Accounting And Reporting Is Vital To Successfully Maintaining Your Commercial Property.
Not all accounting is created equal. Commercial real estate accounting, financial services and reporting requires extensive training and experience specific to the real estate industry.
Bob Gottsch of PM Management’s executive team is a seasoned CPA with over 20 years of experience in real estate related accounting. He has successfully tailored our financial reporting to rival the level of reporting utilized by public companies and the best national real estate firms in the country.
Our Approach
The PM Management team is able to produce timely, useful and accurate reports based on our clients needs. Our management team prepares a detailed zero-based budget for each project.
Our standard reporting package includes a Balance Sheet, Income and Expense Statements, Cash Flow Operating Statements, 12 month and Rolling 12 Month Operating Statements, and Budget Comparison Reports. Our accounting group is flexible and is willing to provide additional reporting such as reporting requested or required by 3rd party lenders, brokers, and more.
“Monthly reports are always delivered on time, and they are very responsive on Landlord’s questions”
– David Nevin, Las Brisas & Vista Hills Shopping Centers
Accounts Receivable
Our accounts receivable system functions include:
1. ABSTRACT LEASE
We summarize each lease with key information to easily review, input, and update.
2. INPUT INFORMATION
Information from the abstract is uploaded into the accounting system.
3. COLLECT MONEY
All monies are sent directly to a lockbox or collected in the office by an independent clerk.
4. COLLECT COPIES
Copies of all deposits and checks are collected and reviewed by our accountants.
5. HANDLE CASH
Cash receipts are posted.
6. GENERATE REPORTS
We run weekly receivable reports.
7. REVIEW ACTIVITY
We thoroughly review all billings and collections for each tenant.
Accounts Payable
Our accounts payable system functions include:
1. AUTHORIZE & APPROVE
All costs within budget are authorized and approved.
2. SEEK APPROVAL
Unbudgeted costs over a specified amount require additional approval.
3. CODE INVOICES
We code approved invoices with the appropriate account number and sent out for payment.
4. APPROVE & INPUT
Codes and invoices are approved and invoices are input for payment.
5. HANDLE CHECKS
Checks are approved and mailed.
6. OBTAIN SIGNATURES
Checks over a specified amount will require two signatures.
7. RUN CHECKS
Checks are run on Friday of each week.
2-Stage Budget Process
Stage 1 of the budget process involves coordinating and gathering information from:
1
THE PROPERTY OWNER
The property owner provides overall objectives of the project and specific instructions.
2
LEASING REPRESENTATIVES
Leasing representatives provide lease-up schedules, including projected rates and input as to capital improvements, amenities, etc.
3
PROPERTY MANAGEMENT TEAM
The property management team provides projected tenant finish costs and major refurbishment costs.
4
MAINTENANCE STAFF
The maintenance staff provides input concerning repair and maintenance costs, general supply costs, contract costs, etc.
5
ADMINISTRATIVE ASSISTANTS
Administrative assistants provide input concerning office and administrative expenses.
6
ACCOUNTING TEAM
The accounting team provides rent rolls, operating recoveries, non-recoverable expenses, debt service, depreciation / amortization, etc.
7
CONTRACTORS & VENDORS
Contractors & vendors provide input to changing costs of services and supplies.
Stage 2 of the budget process involves:
1
PREPARING THE BUDGET
The Property Manager prepares the budget and completes an analysis of the budget.
2
PRESENTING BUDGET
The budget is presented to the Asset Manager and Controller for approval and revisions.
3
FINAL APPROVAL
The budget is presented to the Property Owner for review, revisions, and final approval.
4
EXECUTE
Budgets are prepared using an Excel spreadsheet model. Once approved the budget is uploaded to our accounting software and executed.
Ready to increase the NOI/ROI on your Southern California commercial property?
Contact us today to see how we can help!