Real Estate Accounting
REAL ESTATE ACCOUNTING SERVICES
Real estate is a constantly changing market, with many ups and downs. In addition, there are numerous compliance items and regulations that must be adhered to. This can make the accounting for a real estate company tedious and difficult. However, it is well worth it, in the short and long-term, to commit to maintaining accurate books and records.
Bookkeeping allows you to review your company’s results for the previous month. Our bookkeeping team will set up your chart of accounts using real estate account names. By doing this, you will be able to understand your financial statements with the terminology you are familiar with.
Our team will file your tax return based on your books and records and any additional information you provide. Our tax professionals decipher between all of your expenses and determine what is tax deductible or not. We, then, combine all of your information and prepare all necessary forms and schedules.
Our CFO services are designed to help real estate companies predict their customer demand and be prepared for it. Our part-time CFOs, take the data from your books, employ financial analysis, to project your future sales. Part-time CFO services also include budgets and overall financial guidance.
Why Use Real Estate Accounting?
When you own a real estate company, you encounter a large number of transactions or at least deal with transactions with large amounts. It is crucial for you to understand these numbers and how to manage them.
Incorporating real estate accounting will help you manage your business more effectively and efficiently. Having your company’s financial data ready at your fingertips makes it easy for you to make quick decisions. In addition, you’re able to track results and progress over time to ultimately make the decisions that are right for your business.
Real estate accounting also helps you know the cash and resources you have on hand, the vendors and amounts you owe and the clients that owe you.
Benefits of Real Estate Accounting
Growing your real estate company starts with its accounting. And it’s your accounting that shows you what areas you need to focus on. Specifically, real estate accounting helps you to:
- Keep track of all expenses that are tax deductible
- Manage your finances
- Allocate resources where needed
- Stay compliant with state and federal regulation
WHY LYFE ACCOUNTING FOR REAL ESTATE ACCOUNTING?
We have direct experience managing the accounting for real estate companies. You would be assigned a designated, in-house accountant with specific experience in real estate accounting. Our accountants are knowledgeable and professional, and you can feel confident that your books are in the right hands.
Accounting is handled differently across industries. Our service to you is specifically designed for real estate companies and real estate professionals. We set up your books, reports, and tax returns so that they align accurately to the real estate industry.
Our team comprises of Certified Public Accountants. We have the knowledge, experience, and credentials to support the services we provide. We are experts and have combined experience over 35 years in accounting and finance. Rest assured that there is not an accounting issue we have not encountered.
Key Considerations for Real Estate Accounting
Real estate accounting has a lot of moving parts. For every step of a real estate transaction (from buying a property, renovating, renting, or selling it), you need to keep proper records. Here are 3 key considerations when setting up your real estate accounting:
1. You have to choose an accounting method. Your options are the cash method or the accrual method. The cash method of accounting says you record revenue when cash is received and when expenses are paid out. The accrual method says you record revenue when provide/perform products/services. And expenses are recorded when incurred.
2. Chart of accounts. A chart of accounts is a comprehensive list of accounts you need to record your transactions. Your chart of accounts is needed to create reports, which show your financial results. Your chart of accounts needs to be set up so that all of your transactions can be reflected. This means having accounts for repairs, advertising, rent, commissions, etc.
3. Supporting documents. In real estate, you encounter a lot of paperwork. It’s important to keep up with these documents to support claims made in your books and tax returns. Examples of are supporting documents you should keep up with are:
- Bank statements
- Tax returns
- Insurance information
OUR METHODS TO REAL ESTATE ACCOUNTING
We take the time to catch up your books to the present month.
We set up your chart of accounts so that reviewing your financial statements is easy and tax return filing is a breeze.
We gather data. Whether you use Paypal or a credit card processor, we incorporate that information into your books. We will also connect your financial accounts to your bookkeeping software and begin data entry.
To ensure accuracy on your financial statements and ultimately your tax return, we reconcile your accounts.
We prepare your financial statements. The financial statements include income statements and balance sheets.
We help you use your reports and KPIs to make informed, profitable decisions.
Invest in Real Estate Accounting
Real estate accounting is not an expense. Think of it as an investment for your real estate company. In order to grow your company, you need to have methods of measuring your success. And that is what real estate accounting is for.
In a lot of instances, investing in real estate accounting can save you money. It could be in the form of tax deductions you are not taking advantage of or realizing expenses that are no longer useful to you.
Being in real estate, you know the importance of making good investment decisions. The biggest investment you can make is in your business.
“I can’t say enough good things about Lyfe Accounting. Not only was Krystal super helpful for our small business, but she was amazingly fast at getting our taxes taken care of for us. I highly recommend her to anyone looking for CPA services!”