Our Experience In Real Estate Accounting Services
The global real estate industry appears to be growing at a promising rate, companies in the industry have recently faced several challenges, including a credit crunch, reduced lending, reduced construction, a slowdown, lower commercial property prices, price mismatch between sellers and buyers, fewer construction projects, and so on. According to a Forbes analysis, the industrial real estate sector is expected to outperform commercial real estate in 2018. Income from the worldwide real estate sector is expected to rise over the next five years.
Given the industry’s numerous chances for high-volume transactions, players in the global real estate market must maintain a close eye on the entrance and outflow of funds on a near-daily basis. Companies, on the other hand, frequently find it challenging to keep their books of accounts. Regular bookkeeping may help you remain on track and provide you with a near-perfect picture of your financial situation.
Meru Accounting offers exceptional real estate accounting services with its vast experience and specialization in the real estate industry. Here are some key aspects we consider while offering accounting services to real estate businesses:
- Property-Specific Financial Management
- Profit and Loss Analysis
- Financial Statement Setup and Execution
- Tax Filing and Compliance
The Importance Of Real Estate Accounting Services
The importance of real estate accounting services cannot be overstated, as they play a crucial role in the success and sustainability of businesses in the real estate industry. When it comes to figuring out how to do effective real estate bookkeeping, there are a lot of misconceptions regarding the difference between bookkeeping and accounting. Meticulous real estate accounting goes beyond basic bookkeeping, encompassing a range of specialized tasks that are vital for informed decision-making, compliance, and financial success.
Real estate accounting services involve not only keeping accurate records but also analyzing financial data to provide valuable insights into the performance of the business. Accounting for realtors covers a wide range of tasks, including but not limited to profit and loss analysis, financial statement setup and execution, tax filing, and even financial analysis of the firm. Here are a few methods for efficiently managing your bookkeeping in the real estate industry.
Tips For Efficient Bookkeeping In The Real Estate Industry
Simple accounting advice for real estate agents includes keeping all bookkeeping chores up to date and periodic financial assessments to see whether goals have been accomplished. However, there are a few pointers for effective real estate bookkeeping to ensure your company’s success.
Bookkeeping is a thorough procedure, and it must be ensured that all books are updated regularly to reduce errors and increase visibility. Due to the time-consuming nature of bookkeeping, many small companies disregard or ignore it. Suppose you or your business don't like keeping records or going through these tedious procedures. In that case, bookkeeping can be outsourced through organizations or service providers who will take care of your basic bookkeeping needs like account maintenance, ledger services, forecasting, and budgeting and help you with other aspects of your business. Financial reporting, including risk assessment, profit and loss statements, and keeping expenditure ledgers and balance sheets are only a few accounting and financial services covered.
Maintaining a precise record of all transactions is critical in the real estate market. The real estate sector works with large sums of money rapidly, requiring quick and effective decision-making abilities. It is vital to have a clean record book to guarantee that all transactions go smoothly. Your bookkeeping may be as simple as Microsoft Excel spreadsheets, with QuickBooks thrown in for good measure, or more sophisticated, complex choices like FreshBooks, BusinessWorks, Buildium, and so on. Both techniques have advantages and disadvantages, and it is a matter of choosing the most excellent match for your company. The main idea of having all of your data is to assess your development route and procedures and quickly design a more suited and effective growth path or improve processes. A well-kept record book will also assist you with your annual tax filing and any random IRS audits that may arise.
The real estate business is rife with small charges that are dispersed in all directions. It is critical to keep meticulous records of all such expenses. It's also crucial to classify the costs accurately. The group in complex expenditures is the most straightforward. They are usually closely related to the product and account for around 70% of the project expenditures. They are physical objects, and a skilled estimate should arrive at this figure early on with few mistakes. The remaining 30% of expenses must be thoroughly evaluated and categorized as needed to minimize future errors or grief.
In today's world, technology is crucial. The employment of technology appears to be the most obvious first step. Use accounting software like Expensify, Zoho Expense, or Abacus to keep track of data, maintain track of records, and save millennia of data in an easy-to-find format. You could also utilize Evernote to establish an effective online file system and eliminate the need for old-fashioned filing cabinets. A digital file system would assist in saving physical space and make a beneficial contribution to the environment by eliminating paper use. Technology also aids in the speeding up of operations while reducing the likelihood of errors. Records might be more readily kept and retrieved at the press of a button.
With so many families getting into real estate, the boundary between "professional" and "personal" is becoming increasingly blurred. This is especially true when it comes to real estate accounting, especially for efficient job execution. As a result, it is recommended that family members keep track of real estate transactions regularly. To avoid confusion, simple goods like phone bills for official calls should be paid with a business account and a corporate debit card.
This procedure necessitates visits to a CPA. It is strongly suggested that you visit at least twice a year, ideally once a year. The bookkeeping record will aid in the analysis of the scenario to determine any potential tax liabilities. Timely tax checks will help detect difficulties before the end of the year, giving you ample time to resolve any issues that may occur.
What Are The Advantages Of Hiring Meru Accounting To Handle Your Real Estate Bookkeeping?
Real estate bookkeeping is an integral part of every real estate management company. It doesn’t matter how excellent your sales are if you can’t track sales, earnings, and any records of the transactions you’ve done. If you’ve opted to conduct your bookkeeping in-house, you’ll need to stick to a strict schedule. Records should be updated on a more frequent basis, such as weekly or even daily.
Due to the scarcity of time that real estate agents have, it is recommended that they outsource their whole bookkeeping work to a professional firm. This will allow them to concentrate on their primary business objectives. The following are some of the advantages of collaborating with a professional accounting service provider like Meru Accounting for outsourcing real estate bookkeeping services:
The significance of real estate bookkeeping is sometimes compared to that of a scoreboard in a sporting event. As a result, it must be handled correctly using the software. Some software programs make bookkeeping jobs straightforward, and they are worth investing in. By outsourcing your accounting services through Meru Accounting, we can assure you that we will provide our services through best-in-class software programs.Â
For further information and inquiries, feel free to reach out to us at the below-mentioned details.
