Having a solid accounting foundation is crucial for efficient financial management in the real estate business and for that matter any business. What makes real estate accounting more complex is the dynamic and hectic nature of the business.

Challenges and Complexities of Real Estate Accounting:

Every real estate agent will have his/her plate full of clients, finances, listings and ever-growing networks. The vulnerability of the real estate industry to the outside market forces demand a dedicated and focused approach.

Now add this complex real estate accounting to multiple income and expense streams that needs to be tracked, recorded, monitored and accounted for. Income from commissions, fees and expenses, advertising and marketing expenses, travel and transportation charges, office-related expenses and the list goes on. Without dedicated real estate accountants, Real estate accounts payable in particular, is a tough job to accomplish as is real estate accounting process.

Though costly, hiring an in-house accountant for real estate accounting helps, but as business scales up, it is highly likely that the accounting tasks go out of the scope of a resource or even a team of accountants.

Having real estate accounting software does complement the accounting team but even the software will need a steady hand to completely leverage it. This is where an outsourced real-estate accounting service provider like Back Office Accountants can perfectly help real estate businesses improve their financial management and beef-up their bottom-line.

When does a real estate business need outsourced real estate accounting services?

As the business scales up, the need for proper tracking and monitoring of high-volume transactions from multiple streams, efficient tax payments, financial planning and forecasting increases multifold.

If you are a real estate agency that has an in-house accounting resource then there surely comes a point when the services of a specialist real estate accounting services are needed. This the point where your current in-house accounting team may not accommodate all your accounting requirements. But most real estate businesses do not identify these signs until they experience consistent accounting mishaps or lose money.

If you are real estate business we advise you to look out for the following signs to know whether you need services of a back-office accounting firm:

Your core real estate business is suffering:  The highly competitive and dynamic real estate business needs a dedicated focus of the core team. If their time is being shared for bookkeeping and accounting and accounts payable tasks core business will take the brunt of it haven’t already. If your core activities are being impacted by increased accounting load, then it’s a clear sign you need additional help for your accounting needs.

You are often falling short of maintaining regulatory compliance: Compliance in the real estate industry is a factor of jurisdiction and region. Not only are they geography dependent they keep on changing from time to time. Without adequate resources who can keep track of these developments, and ensure the compliance is met, it is common to fall short of compliance which is a glaring sign of what is in store for the future.

You do not have access to the latest technology infrastructure: High volume accounting work significantly benefits from automation software and tools which most real estate businesses lack, understandably. For a business looking to leverage cutting-edge automation tools and accounting expertise of accountants while lacking sufficient resources or technology infrastructure then outsourcing accounting services and real estate accounts payable is the right choice.

Your agency is looking to adopt cost-cutting measures: The COVID-19 pandemic has left a scar on every business, even more so on the real estate industry. If you are a business is looking to adopt a lean workforce model, outsourcing accounting services is the best thing to do from a cost-cutting and performance perspective.

You are looking to gain a competitive edge: Every real estate business we worked with, at Back Office Accountants was equipped with either strong technological infrastructure, a large accounting department or outsourcing partners to enable smooth and seamless accounting processes. This way they got to completely focus on their core business while leveraging tax benefits, maintaining compliance. If your business is looking to gain a competitive edge outsourced real estate accounting services is a perfect choice.

How Back Office Accountants can help real estate businesses?

With a team of real estate accountants, our accounting firm utilizes its advanced real estate accounting tool and software can help streamline and simplify real estate accounting and real estate accounts payable to give more insight and clarity on the finances. With our real estate accounting services, it is easy to scale up or scale down while leveraging their high-performance services all along.

We are also one of the very few accounting firms in the market that has been offering dedicated real estate accounting and real estate accounts payable services for more than a decade now. If you are a real estate agency looking for dedicated accounting or accounts payable services, you can contact Back Office Accountants here: https://www.backofficeaccountants.com/