Real estate is a business with long sales cycles and a complex accounting mechanism. It is important to understand the nitty-gritty of accounting for real estate investors to increase productivity.
With a view to achieving favourable cash flows and healthy financial practices, real estate accounting software helps in aligning accounting with business operations.
Let’s take a look at how you can improve the accounting ecosystem of your property business using outsourced accounting and productivity software.
How to Grow Your Real Estate Business with Accounting?
Growth happens when finances and accounting are in order. Incorporating the following best practices in your accounting routine will help your business scale up and grow with time.
- Deploy real estate accounting software – Software enables automation of the clerical processes of accounting, like processing documents and extracting data from them. This helps optimise the cost of manhours required for accounting processes
- Assess your business needs and decide on a system of accounting that suits your business best. It can be either accrual-based accounting or cash-based accounting
- Develop an accounting chart to keep track of all the transactions taking place on your real estate account. Keep your transactions segregated based on categories like maintenance, fees, rents, etc.
- Ensure that all your data is accessible easily. Tax audits are a real thing and can happen to your business out of the blue; having all the data handy can help ease the process and save a lot of time.
Accounting Moves You Should Make That You Are Not Making
To survive today’s tough competition, businesses must stay updated with contemporary practices and consumer preferences.
Real estate has been evolving increasingly in the New Normal era; here are a few real estate accounting moves that your business should be making about now:
- Leveraging cloud-based real estate accounting software to increase productivity and accounting efficiencies. This enables your real estate business to be remote and accessible
- Digitise your operations as far as possible. This is the era of the digital revolution; if your real estate business isn’t offering virtual property tours or online property portals, you may be missing out on a large pool of tech-savvy leads
- Outsource your real estate accounting services to professional agencies. They know the ins and outs of real estate accounting and can accomplish tasks in a fraction of the time
How Real Estate Accounting Software Helps
Productivity software in real estate is a big deal today because of the numerous advantages it offers to the businesses that adopt them.
Here are a few ways real estate accounting software helps businesses:
- It helps you continually reassess your assets based on the current market status – the demand and supply, rent trends, association charges and other fees
- It saves you a significant amount of time, money and resources by automating clerical and/or administrative tasks
- The analytical, predictive and forecasting functionalities of real estate accounting software help the C-suite employees make informed decisions on business furtherance and growth strategies
- The integration, centralisation, unification and democratisation of data across the business make it easy for the business to function effectively
How OHI Can Help?
OHI is a fifteen-year-old real estate services company working with 50+ commercial and residential real estate developers, funds and property management companies across USA. Our deep expertise in real estate accounting, financial analysis, lease administration and asset management has helped clients cut associated costs by 40-50%.
Our Service Offering:
- Accounting for Residential and Commercial Real Estate Companies
- Lease Abstraction and Administration
- Asset Management Services
- Acquisition Support
- Investment Analysis
- Real Estate Back Office Services like Maintenance, Administrative and Marketing Support
Book a demonstration with OHI today to understand the full scope of real estate accounting conveniences on offer.
Regardless of the industry, accounting should always be prim and proper to avoid a last-minute rush. Especially in the real estate industry, where high-consideration sales are the norm, accounting should be crystal clear from the get-go. Outsourcing this task to real estate accounting service providers is the most sensible option.