REAL ESTATE ACCOUNTING

Real estate is one of the most lucrative and profitable investments in the world, but it’s also one of the most complicated. There’s an enormous amount of speculation in the housing market. Not only that, but it’s generally agreed that, if you want to turn a profit and generate substantial wealth, you must invest in a multitude of properties. That’s a lot of assets, a lot of speculation, and a lot of numbers to crunch; and that’s why having accurate accounting is a must.

Today more and more people are investing in real estate. Real estate provides many advantages over other types of investments. For example:

1. You can use leverage (other people money) to buy property
2. You can receive cash flow
3. from the property while the property appreciates.
4. You can sell the property and not pay tax (if properly structured)
5. You can take money out of your real estate through refinancing so that you get your money and still keep the asset
6. There are more tax benefits for real estate ownership than other forms of investment

But many real estate investors are discovering that the benefits of owning real estate includes one big responsibility - extensive record keeping.

If your business is involved in the real estate trade in any way, you could benefit tremendously from having a bookkeeper that’s knowledgeable about the housing market. Some of those trades include:

       - Real estate brokerage

       - Real estate developer

      - Property management

      - Building construction

      - Real estate investing

      - Home owner condo association

For any business involved in these trades, a bookkeeper can help to:

     - Prepare accurate tax filings

     - Find places to cut costs

     - Evaluate the profitability of assets

Why keep real estate records?

The biggest challenge facing real estate investors is keeping good accurate records. If you don't keep track of your income and expenses you are likely to lose the ability to deduct those expenses on your tax return. If you can't prove your deductions, you will lose them in an audit. That means that you will pay more tax. Plus if something happens to your property and you need to provide good documentation for your own protection or you risk losing everything. Either way - you lose! Whether you own, rent or lease, good records can protect you against those problems.

Regardless of the types of real estate you hold or the type of real estate investor you are, you will need to:

       - Account for the buy

       - Account for the hold

       - Account for the sale

       - Account for joint venture partners


Well-managed real estate accounting is vital

By outsourcing your real estate bookkeeping to us, we will help you to run your business better and show you how managing your books allows you to track progress. You can see if you’re making a profit and which properties perform the best. Good record keeping will also help you compare year-to-year growth, know how much cash you have on hand, pay bills on time and prepare your tax return.

Sometimes, it’s hard to set aside time for managing bookkeeping. But, real estate accounting is a necessary part of property management for keeping up with financial records, catching issues and seeing growth opportunities.

Call us today (905-901-3063) so you can spend less time managing your books, and more time finding, managing, and selling properties