8 Financial Statements Every Property Manager Needs (Updated for 2025)

Property management financial statements are vital in ensuring how well you manage your properties. They help you keep track of your finances and highlight areas of improvement, so you can adjust expenditure if necessary.

Key Points

1. Financial statements are essential for managing rental property income, costs and cash flow.

2. Key reports include the income statement, balance sheet, rent roll and accounts payable.

3. Technology like Propman can simplify reconciliation, forecasting and reporting.

4. Automating financial processes reduces risk and improves accuracy.

5. A full-featured accounting system can enhance decision-making across your portfolio.

Why Financial Statements Matter in Property Management

Property managers rely on financial statements to track performance, monitor expenditure and stay compliant. These reports provide visibility into income, costs, cash flow and profitability.

In this guide, we outline the eight most important financial statements for property professionals, and explain how modern technology can help you manage them efficiently.

In this article, we highlight property managers' most important financial statements. We'll also cover how the right technology can help you manage your workload effectively while performing accurate and timely tasks.

• Accounts Payable
• Balance Sheet
• Income Statement
• General Ledger
• Tenant Receivables
• Rent Roll
• Service Charge Budget Reports
• Monthly Bank Statements with Reconciliation
• The Role of Technology

1. Accounts Payable

Accounts payable describes your short-term financial obligations and helps you make sure you’re making payments to the correct vendors or suppliers. These reports also ensure you’re not carrying delinquent accounts, which are accounts that have not yet been paid despite the passing of the due date.

Payments may include:

• Insurance
• Loans and finance costs
• Utilitity bills
• Maintenance
• General goods and services

Timely tracking also prevents double payments and highlights cash flow risk before it affects your operations.

2. Balance Sheet

The balance sheet gives you a snapshot of financial position by showing the relationship between a property's assets, liabilities and equity.

• Assets: cash, land, buildings, equipment and furniture.
• Liabilities: mortgages, loan balances, accounts payable 
• Equity: calculated as assets minus liabilties

This is essential for understanding net value and assessing solvency.

3. Income Statement

Also known as a profit and loss statement, this report summarises income and expenses across a defined period.

Includes:

• Revenue: rent, fees, recharges
• Expenses: utilities, maintenance, property taxes, insurance

This statement is crucial for measuring profitability and making informed decisions about pricing, repairs and service contracts.

4. General Ledger

A general ledger is the primary accounting record for your company and summarises each financial transaction found in the balance sheet and income statement. Your general ledger is the foundation of your accounting process, so it’s essential to prepare it accurately. 

Covers:

• Assets
• Liabilities
• Equity
• Revenue
• Expenses

Accurate ledger management is the foundation of reliable financial reporting.

5. Tenant Receivables

This ledger refers to the individual receivable amounts from each tenant and is summarised on the balance sheet and income statement.

May include:

• Monthly rent
• Service charges
• Utilities and recharges
• Security deposits

6. Rent Roll

Rent roll predicts the revenue you can expect from a property. You can produce rent roll reports so you can analyse whether a property is meeting financial targets.

The rent roll report will include the following on each property:

• Lease dates and terms
• Estimated rental value in the current market
• Total of amounts deposited
• Recurring costs.

Essential information in the rent roll report includes gross scheduled rents, renewal rates, collections, evictions and revenue generation.

7. Service Charge Budget Reports

Service charge budget reports predict the shared costs between tenants for servicing communal areas of a property that a landlord is responsible for. Often completed annually, it outlines a plan of future expenditure, which is then divided between occupiers.

Process:

• Review historical and forecast costs
• Factor in reserve funds or planned works
• Allocate costs between tenants

This report is especially important for commercial or block managers needing to recover charges in line with lease terms.

8. Monthly Bank Statements with Reconciliation

This statement shows cash balances and reconciles them with internal records. It ensures alignment between your bank account and accounting system.

Used to confirm:

• All deposits and payments are recorded correctly
• No unauthorised or missed transactions
• That the general ledger reflects true bank balances

Regular reconciliation avoids errors, reduces audit risks and supports transparent reporting.

The Role of Technology

Using the right technology can ease the burden of your financial responsibilities when managing properties. Specialised property management and accounting software such as Propman can handle all your essential property management tasks.

The comprehensive accounting functionality allows for the production of full management accounts, giving you more time to focus on the things you love about property management. The correct software can help you to reduce inefficiencies, provide valuable insights and deliver an enhanced level of service.

To help you even further, we’ve put together a handy comparison guide that looks at the pros and cons of popular accounting software. To download your free copy, click below.