Real Estate Accounting And Bookkeeping Case Study

Introduction -Bookkeeping For Real Estate Business

The global real estate industry is performing well. It is expected to grow from $2687.35 billion in 2020 to $2774.45 billion in 2021 at a compound annual growth rate (CAGR) of 3.2%. Furthermore, the real estate market is anticipated to reach $3717. 03 billion in 2025 at a CAGR of 8%.

As the real estate industry offers several opportunities for high volume transactions, it is crucial that real estate players keep a check on the inflow and outflow of money. Regular and up to date accounting is of paramount importance to real estate businesses. Owing to the volume of transitions and dynamics involved in the real estate industry, bookkeeping and accounting for real estate agents can often be more complex and challenging.

Issues with real estate bookkeeping of our client

Problem Faced:

Our client is a US-based renowned real estate company with an annual turnover of USD 69.7 billion and an employee headcount of 35,000. They have global operations and are planning for further market expansion. The client was facing multiple accounting and bookkeeping challenges, such as:

Accounting of large scale and complex real estate transactions

Ineffective data and system integration with accounting software

Erroneous classification of expenses

Improper project planning, task scheduling and tracking of the activities

Lack of cost center wise revenue and expense tracking system

Incorrect classification of costs

Complex accounting processes

Resolution

Meru Accounting implemented an automated and integrated project management software to plan, assign, manage and schedule tasks. The system provides accurate data in order to keep the financials up to date. We restructured cost centre and stagewise purchase and expense masters in the accounting software.

We worked on detailed and robust documentation and data management capabilities. This helped our client keep a track of cash outflows and prevent unnecessary expenses.

Our deep industry experience and the team of skilled professionals helped us manage complicated and complex real estate transactions with ease. We worked on efficiently maintaining books, managing cash flows, managing the supply chain and keeping a track of every monetary transaction.

We implemented state-of-the-art technologies and the best real estate accounting softwareto streamline processes.We support multiple accounting software that helps us swiftly implement solutions. Our software capabilities include Quickbooks, Net Suite, Quicken, CSA, Peachtree, MYOB, Sage, Creative Solutions’ Ultra-Tax and Intuit’s Pro Series.

The above steps helped our client gain complete visibility into their accounting and bookkeeping and thereby drive profitable outcomes.

Steps Taken

Setting up the chart of accounts
Recording invoices from suppliers
Recording expense receipts from tenants
Paying suppliers
Recording depreciation and other adjusting entries
Processing payroll and providing the paychecks
Month-end and year-end closing including reconciliations and preparing cash projections
Entering bank details
Meeting statutory compliances
Preparing construction in progress reports
Segregation and allocation of project-related costs
Recording the transactions
Processing inter-company transactions

Outcome

60% reduction in unnecessary and duplicate ledgers

25% reduction in project cycle time

20% costs controlled

Necessary documents were readily available

Real Estate Bookkeeping Services By Meru Accounting

Meru accounting has a proven track record of providing real estate bookkeeping servicesto service providers, property companies, construction companies, homebuilders, construction and engineering companies, landowners and developers, etc.

We enable real estate companies to maintain orderly and reliable records of accounts, timely comply with regulations and help them stay ahead of the competition. Our real estate accounting services aim to reduce operating expenses, strengthen the cash flow, and boostprofitability.

Get in touch with us now, to know more about how we can assist you to streamline your real estate accounting and bookkeeping and help you maintain accurate accounting records.