To be successful in your real estate business, you need to retain your existing clients and scale your business by getting new clients. All of this requires an investment of a lot of time and effort.
If you focus on your business and ignore accounting, you could end up paying massive penalties for violation of Federal and State Regulations relating to accounting for real estate businesses.
On the other hand, if your staff spend more time keeping your accounts up-to-date, you could end up losing business since your customers will be unhappy. A catch-22 situation? Not really!
The smart solution is outsourcing your accounting needs to a professional accounting firm and focusing on your core area, real estate. But is accounting important for your real estate business? Let’s find out in the next section.
Yes, it does! Here are some top reasons why your real estate business needs accounting:
With real estate accounting, you can analyze your income and expenses. It lets you identify expenses that generate higher ROI (return on investment) and those that don’t add value. When most of your expenditure is an investment, your profits grow.
Overpaying your suppliers is a waste of money. With accounting services, you can switch to a more cost-effective alternative and reduce wastage.
Professional accountants can advise you on cheaper debt options for credit cards or business loans. You can shift your debt to low-interest credit cards and lower your debt.
What’s your business worth? Professional accountants can study your books of accounts to give you a fair and accurate valuation of your business. This will help you get business loans at competitive rates.
With professional accounting, you can check the rate of growth of your business and how you can achieve your target growth rate.
You don’t need to worry about compliance issues since accounting professionals know the latest tax updates for your business and your products.
In the next section, find out why outsourcing accounting is a better option.
Why should you outsource your accounting to OHI? Here are some compelling reasons:
You get high quality and save costs. The fees charged by the firm are much lower than what you would pay for full-time or part-time staff in your in-house accounting department.
The time and cost spent on hiring staff for your accounting department would be saved, along with the time you spend training the recruit.
When you don’t spend time on accounting tasks, you can focus on your core business of providing better services to your customers and increasing revenues.
OHI have a team of experienced property accountants, and you get the benefit of the collective knowledge of the latest trends and regulations. You avail of all deductions and ensure you don’t pay the penalty for missing crucial deadlines.
Business goes up during peak times and falls during lean times. You can pay OHI through a variety of options (hourly/monthly/project basis). This flexibility optimizes your costs.
With automation, the chances of making errors come down. There are fewer internal frauds. The software generates real-time reports to identify and resolve problems early.
Here are some accounting services for real estate provided by OHI:
This includes move-ins, lease setup, and move-outs to cover the complete tenant cycle.
Keep a tab on your payables and receivables with OHI’s accounts receivable and accounts payable services. Don’t miss out on rent collection or supplier payments!
Ensure your accounting is up-to-date with bank account reconciliations, mortgage insurance, and taxes.
Monitor the status of the properties in your portfolio with an automated fixed assets register. This will have new asset additions, write-offs, and property dispositions.
Get comprehensive monthly financial reporting along with the actual-budget variance analysis.
Services provided under this feature are tenant analysis, location review, financial analysis, and more.
Get detailed information on property management summaries and leasing reports related to the guarantor, borrower, and your property.
Look for the following points when selecting an accounting partner for your real estate business:
Determine the important accounting services your business needs, and then look for a firm that is offering that.
Your accounting firm should have extensive experience in the real estate industry, along with a qualified team to give you the highest ROI.
You can check online reviews about the firm and ask for references from existing clients. Choose a firm that has experience with positive reviews since you need a long-term partner for success.
When you focus on your core and leave the accounting to experts like OHI, you maximize revenues. Spend more time with your clients and profit from the OHI experience. Get in touch with us now!
Low Cost Property Accounting Services: AP | AR | Reconciliations | Month End Closing | Financials | Year End Accounting | Reporting – VIEW HERE
Contact us for a customized NO OBLIGATION proposal for outsourcing your accounting activities.