Sorting out the financials can really be a pain. If you're anything like other Realtors, I doubt you enjoy learning about accounting software or spending hours demingling personal and business expenses. Very few of us real estate professionals enjoy the financial part of the business (except of course the part where commissions are deposited in our bank accounts). The bottomline is, if you wanted to be a tax expert, you would have become a CPA…not a real estate agent.
That’s the #1 reason why you need a good bookkeeper.
It frees up so much of your time so you can focus on what you do best: selling homes and making those deals happen!
But how do you know if you have a good bookkeeper or accountant? Better yet, how do you know you’ve found a great one?
Here are the 6 things to look for:
1. Accuracy and Compliance: Keeping Your Real Estate Business in Check
A good bookkeeper ensures your financial records precisely reflect your real estate business’s performance. Accurate bookkeeping not only helps in maintaining compliance with tax regulations but also shields you from potential penalties or fines, which is crucial in the ever-scrutinized real estate sector.
2. Better Financial Management: Essential for Real Estate Success
Clean and well-maintained books offer a transparent view of your income, expenses, assets, and liabilities. This clarity is invaluable for real estate agents as it helps in pinpointing cost-saving opportunities and boosting profitability through strategic financial planning.
3. Improved Cash Flow: Keeping the Money Moving
Efficient tracking of unpaid invoices and proactive follow-up on overdue payments can significantly enhance your cash flow—a vital aspect of running a successful real estate business. Knowing when money is expected to come in and go out allows for better financial planning and avoids fiscal surprises.
4. Informed Decision Making: Building on Solid Ground
Whether you’re considering buying new property, investing in marketing, or expanding your team, having accurate financial information at your fingertips supports informed decision-making. This also aids in setting more accurate budgets and financial targets, which are essential for growth and sustainability in real estate.
5. Easier Tax Preparation: Smooth Sailing During Tax Season
A good bookkeeper makes tax season less daunting. With organized and up-to-date books, you’ll have all necessary documents ready for tax preparation, minimizing the stress and reducing the time spent on this critical task. This organization not only lessens the likelihood of errors but also decreases the risk of audits. (Bonus if you work with a firm like Alchemy, where bookkeepers and CPAs collaborate every day, making the experience even more seamless and efficient for our members.)
6. Enhanced Professionalism: Presenting a Credible Business Face
Maintaining tidy financial records enhances your professional image to investors, lenders, and potential partners. In the real estate world, where credibility can facilitate or hinder opportunities, having orderly books can significantly boost your chances of securing loans or attracting investors.
Interested in learning more about Alchemy’s bookkeeping and strategic tax services? Book a call here and let’s see how we can help you grow your business faster, and with more ease.
Comments