6 Ways For Efficient Real Estate Bookkeeping

While the global real estate industry is by all accounts growing at a promising rate, companies in this industry have been facing a few challenges of late, such as credit crunch, reduced lending, reduced construction, slowdown, reduced prices of commercial properties, price mismatch between sellers and buyers, fewer constructions taking place, etc. In fact, the global real estate industry income is projected to increase in the following 5 years.

As the industry offers several potential open doors for high-volume transactions, players in global real estate should market keep a beware of the inflow and outflow of cash, almost on a regular basis. In any case, companies often find it hard to maintain books of accounts themselves. Hiring a bookkeeper for real estate can help you stay on course and paint an almost accurate image of your financial standing.

Tips for Efficient Real Estate Bookkeeping

There are a lot of straightforward accounting tips for real estate professionals such as ensuring all bookkeeping tasks are up-to-date and periodic financial reviews are directed to assist with ascertaining goals have been met. Be that as it may, there are certain tips for effective real estate bookkeeping, which guarantee business success.

How about we take a gander at the important aspects that you should consider -

1. Update your Accounting Books Timely

Bookkeeping is a careful interaction and it should be ascertained that all books are updated regularly to minimize errors and give the greatest visibility. Often, smaller businesses will quite often disregard or overlook bookkeeping because of the monotonous nature of the task. Assuming you think maintaining records or undertaking this mundane methodology isn't for you or your business, your bookkeeping can be outsourced to organizations or specialist co-ops that not just take care of your basic bookkeeping needs such as account maintenance, ledger services, forecasting, and budgeting, yet additionally cover a great deal of accounting and financial related services as well, such as financial reporting including risk assessment, profit and loss statements and maintaining expense ledgers and balance sheets.

1. Perfectly Record Maintenance

In the real estate industry, maintaining an ideal record of all transactions is important. The real estate industry deals with overflowing amounts of cash at a fast pace with speedy and strong dynamic powers. In request to guarantee that all transactions move smoothly, it is vital to have a pristine record book. Your bookkeeping can be as straightforward as Microsoft Excel spreadsheets, and maybe a tryst with QuickBooks or more sophisticated, complex options, such as FreshBooks, BusinessWorks, Buildium, etc.

2. Classify Costs Correctly

The real estate industry is filled with several small costs going out in all various bearings. It is important to maintain a neat record of all such costs. Equally important is to classify costs accurately. Hard costs are the easier batch. They are generally straightforwardly associated with the item and usually make up for 70% of the project costs. They are tangible entities and usually a decent estimator will actually want to arrive at this number early on absent a lot of margin of error. The remaining 30% of costs has to be carefully analyzed and classified as required in order to avoid future errors or pain.

3. Leverage Technology

Technology is key in today's day and age. Making the utilization of technology seems like the clearest step. Utilize bookkeeping software such as Expensify, Zoho Expense, or Abacus to assist with monitoring data, keep a nearby track of records, and store ages of data in a fashion that is easily accessible. You could also utilize apps to create a productive online filing system and get rid of age-old physical filing cabinets. A digital filing system would assist with saving physical space as well as have a positive commitment to the climate by going the paperless route. Technology also enlivens processes while making them less inclined to error. Records could be maintained all the more easily and can also be fetched at the touch of a button.

4. Build a Wall between Business and Personal

With a ton of families entering the real estate business, the thin line of distinction between "professional" and "personal" is gradually diminishing. This holds doubly obvious with regard to accounts in real estate, especially for the smooth functioning of tasks. Consequently, it is advisable that family individuals maintain bookkeeping of real estate transactions regularly. Indeed, even small items, such as telephone bills for official calls are best paid by a business account and a company debit card to avoid any mix-up between the two.

5. Tax Review Sessions

Trips to a CPA are essential in this cycle. A yearly visit, or preferably, visits at least double a year, is energetically suggested. The recordings made by a bookkeeper for real estate will assist with analyzing the situation for any tax liabilities. Doing ideal tax reviews will assist in catching issues before the year's end with sufficient opportunity to address any issue that may arise.

Also Read: Common Mistakes to Avoid in Real Estate Accounting

How Might You Benefit by Outsourcing Real Estate Bookkeeping to a Servicer?

Bookkeeping in real estate is an essential aspect of all real estate management firms. Regardless of how great your sales may be, it means nothing on the off chance that you are not able to track sales, profits, and essentially all records of the transactions made. On the off chance that you have chosen to undertake the task of bookkeeping in-house, it should be done strictly. Records ought to be updated all the more regularly, such as week after week, or perhaps, even daily.

Considering the paucity of time real estate agents have, it is advisable they outsource the whole task of bookkeeping to a professional agency. This will assist them with focusing on their core business goals. The advantages of partnering with a specialist organization for outsourced real estate bookkeeping services are as per the following -

• Your partner will guarantee compliance with regulatory standards in the industry, as well as adhere to Generally Accepted Accounting Principles (GAAP)

• The outsourcing agency will involve the latest tools in the market for real estate bookkeeping, which you may not have the option to invest in

• All transactions recorded and accounted for, will be done through a secure gateway, making sure your business-critical data isn't compromised with

• You will encounter reduced time, endeavors, and costs by outsourcing your real estate bookkeeping necessities to a professional specialist organization

• Nonstop support and access to your financial information will be made available

• Outsourcing also provides you with the added advantage of access to skilled manpower to take care of your bookkeeping necessities

Global FPO(www.globalfpo.com)is an Outsourcing Accounting firm consistently recognized for its exceptional outcomes and strong work culture, with 500+ happy and satisfied clients across. They provide everything from straightforward tax return work, or basic bookkeeping, to advanced & complex Financial Statements to CPAs & Accounting Firms implementing best industry practices & values. Their Accounting solutions are comprehensive, customized to unique business operating models, and use “best-of-breed” technology under a strong two-tier reviewing mechanism ensuring minimum risk of error.

Global FPO is a professional outsourcing and consulting organization offering services across the globe including USA, Canada, UK, Europe, Australia, New-Zealand, Japan, Dubai and the Far East. GFPO experts provide services at competitive prices to our clients in the areas of:

1. Bookkeeping & Controller level services

1. Tax Filing,

1. Payroll processing

1. Accounting Advisory and GAAP Reporting

1. Audit and Transformation consulting

To explore more on Global FPO and its online Accounting/ Bookkeeping, Tax Return Preparation, Financial Statements, Accounting Advisory, Payroll Processing, and related Business Services contact us at:

Phone (USA): +1 (832) 426-2521, +1 (347) 781 5928 or

Email: contact@globalfpo.com.