Distillation is the process of separating the components from a larger mixture. Distilling is used in alcohol, water, oil and other liquid mixtures. Humans have been using distilling since 3000 BC. But did you know that commercial real estate professionals do their own form of distilling?
It comes in the form of profit and loss. Separating those numbers from the rest is a difficult task on your own, but commercial real estate software makes it easier. From lease administration and accounting to property and asset management, CRE software can arm you with all of the in-depth details you need to properly evaluate your P/L.
How to Distill P/L
Again, evaluating profit and loss is like distilling a liquid mixture. The goal is to separate the individual components that are contributing to your asset loss or gain and make sure you have a pure, filtered view of it. Going in-depth with your analysis can be helpful for some applications, but you need to take a step back and look at the bigger picture to see whether your investment is profiting or losing money.
How do you do that? By regulating key data points. The main things you want to focus on are income and expenses, of course, so you need to ensure all the numbers contributing to them are tracked and regulated. Make sure you’re managing and reporting every aspect of your property that relates to profit and loss, from assets and leases to accounting and projects.
CRE Software P/L Reporting
Let’s take a look at some of the in-depth details commercial real estate software provides that can help you with your profit and loss reporting for your portfolio:
- Lease administration: track where there are profits and losses with your leases by taking a look at vacancies, occupancy costs, space utilization, options, rent schedules and more. There are hundreds of ways this area can affect your P/L statement.
- Properties: see income and expenses for your properties as a whole and identify where you’re profting or losing when it comes to equipment, vendors and maintenance.
- Assets: manage and control valuations for equipment and inventory, as well as factors that contribute to value, such as warranties, maintenance, insurance, repairs and so forth. Organizing details down to the serial number is important for accurate data.
- Projects: ensure you’re not going over scope with projects and related tasks, hours, time, responsibilities and pipeline. All of this contributes to P/L.
Ready for a better way to evaluate your P/L? Request a demo of Quarem today and see how commercial real estate software can help.
