As an industry sector, the real estate is greatly exposed to market fluctuations. Therefore, it is vital for companies working within the industry to maintain a high level of productivity while also look for a better cost efficient solution. Outsourcing back office process such as finance and accounting to an experienced business process outsourcing company, is an excellent way to relieve your organization of these tasks and liberate more time for your core capabilities.
The Real estate industry requires undivided attention all the times only because of the unstable nature of the real estate scenario worldwide. Cost fluctuations on your key commodity – land – happens at the slightest cause – elections, economic recession, or may be a terror attack. Consequently, any chances to miss cash in, on business opportunities can badly affect your business growth.
The core decisions that you can certainly take is to outsource your real estate accounting process. This one decision can free you from lengthy and dull bookkeeping task. By handing over the responsibilities to specialized real estate accounting service firm, you get quality output at very affordable price.
The basic question that runs in the mind while thinking about outsourcing is –
What type of outsourcing company should I choose?
1. To get the most out of the outsourcing venture, it is better to hire an outsourcing firm which has considerable experience in the real estate industry for the following reasons:
a) The outsourcing company can cautiously match the skill set of the accountant with the needs of your business
b) The outsourced company will have an experience in accounting processes that are related to the construction and real estate industry, including lien waivers, revenue recognition rules, proposals and contracts etc
2. Software experience – It is very important to guarantee flawless combination between the outsourcing company and you. Good outsourcing accounting companies will have the skill set and experience in industry specific software like Yardi, Appfolio, Real Page – Onsite, Timberline and MRI. They have their own advantages and you should analyze with the company what will suit you the most. Consider one factor; you can choose web based software which gives you the access to your accounts in one go even from remote locations
3. Data security – while choosing services nothing can be greater than guarantee about the security of your data and privacy of your accounts position. The outsourcing companies have spent greatly in tools and technology to handle data security issues carefully so that they are minimizing the chance of a possible breach
Outsourcing definitely simplifies the accounting task. When you hire the usual, in-house accountant you are bound by several rules and regulations that simply aren’t there when you choose an outsourcing company. They pay their own taxes, cover their employee benefits and the paid time off you have to worry about it either. You even don’t have to bother about the traditional recruiting responsibilities.
Real estate accounting isn’t a simple task no matter how big or small your company is. There are too many rules and numbers to be taken care of. Hence outsourcing can really help. Choosing a new way over old ideologies will give positive results soon for your real estate business.
If you haven’t thought about it in the past – now it may be the time to start looking for outsourcing some of your regular tasks like accounting.