Bookkeeping for real estate serves many purposes. Though people think of the services as a way to record financial activity to feed to a tax accountant, bookkeeping offers other important benefits for the real estate investor or landlord. It is a source of management insights for growing a financially healthy business.
Insights to Avoid Surprises
Owning or managing real estate comes with many obligations that include complying with laws and government regulations, making timely mortgage payments, communicating accurate data to the tax accountant and tracking timely payment of rents due in adherence with lease agreements, to name a few.
Like any business, revenues must cover variable and fixed costs. Accurate bookkeeping is crucial to keeping the real estate investor or landlord informed. Small businesses especially have a high rate of failure per the Small Business Administration (SBA), and one of the top reasons is that cash flow does not cover expenses. Without accurate bookkeeping, the cash flow shortage can take the business owner by surprise. It is really that simple.
Unfortunately, it is easy for any size business in real estate to let their recordkeeping fall behind because their time is tied up in managing properties. They realize too late that their business is in trouble. It is the kind of surprise no business owner wants to experience.
Painting a Clear Picture
Bookkeeping for real estate offers more than the ability to comply with IRS and other legal requirements. It is a monthly source of information that includes reports with data analysis clearly showing where the business stands financially regarding daily or monthly operations.
It is important not to let bookkeeping fall behind because that usually leads to poor decision-making. One of the many benefits of bookkeeping services is that it delivers the insights needed for business success.
The professionals at The Bookkeeper have extensive experience in delivering bookkeeping for real estate services and detailed reports that give real estate investors and landlords insights for effective decision-making. Contact us online or by phone to learn more and make an appointment for a free consultation.
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