Are you in a real estate business and are not aware of what to do with your accounting problems? Is making your final balance sheet and income statement the sole reason for your sleepless nights? Then you surely need the help of real estate accounting services.
What is Real estate accounting?
Just like various other business field, real estate is also associated with various types of economic transactions, profits and losses, credits and debits, incomes and expenditures etc. Even the figures related to real estate also outnumber various other businesses.
Keeping this reality in mind, we can say that real estate accounting is more complicated and cumbersome than maintaining of accounts in various other businesses. Real estate accounting is important and vital for the company to continue its existence. Therefore, real estate accountants today have become the need of time for many real estate business owners.
Mentioned below are the few reasons why real estate accounting has became the necessity.
- People involved in the real estate business don’t often have time for accounting. They are the kind of people who don’t look at the accounting until the time come for paying taxes which is a very wrong approach. Accounting should be done the minute a transaction is recorded, if not done, the amount will get distorted and the tax payment amount becomes different.
- There are lots of people who are depended on your accounting. For example Stakeholders who have invested a lot amount in the business and they need to know whether their money is repaying profit or not; creditors and debtors like banks and various loan agencies who need to know whether you have the potential to repay the money in time with principle and interest; and finally comes the government who will decide how much taxes your company has to pay based on your profits.
- Real estate accounting is very much different than the normal accounting that is taught in schools. The procedures followed in the real estate accounting and the way in which books are maintained here are totally different. The policies and the percentage of tax paid varies from one industry to another, Thus the procedures followed here different and are even more complicated as well as different. Due to this reason it becomes mandatory for real estate owners to hire real estate accountants who are well aware of the in and out of accounting.
- In today’s time hiring a real estate accounting service provider or outsourcing the accounting work has become a trend. There are real estate firms that focus in outsourcing their accounting work, as accounting is a complicated process. Outsourcing work can be done outside of the country as well since it does not need any sort of direct contact with the client. There are various other benefits in outsourcing the accounting work.
Benefits of Outsourcing Accounting Work
Less chance of mistakes:
We know that accounting is a complex process to handle and many a times even consultants commit mistakes and this can only be improved with time. Thus it is better to hire accounting service providers who have learned a lot from their mistakes.
Problem Analyzing Skills:
When maintaining large figures and data related to real estate business, problems are sure to arise. But, when you outsource accounting related works to a skilled professional they can smartly investigate and solve your account related problems. They are capable enough and can ensure smooth functioning of account department of a real estate business at their own level without consulting you.
Adapting to changes:
Unexpected changes are sure to come in a real estate business more than frequently. In such case, real estate accounting services can easily overcome such circumstances. These service providers possess sensible information on accounting related to real estate industry.
Few Common Traits a Real Estate Accountant Should Posses
- An accountant must possess excellent organization skills. They must keep up-to-date with all figures, data, and paperwork in their daily accounting jobs. They must be fast in finding the latest information. Accountants must organize their work to maximize productivity and should have time to do research and analysis.
- Accountants must have a good time management skills. As accountants of today are playing an important role in strategic decision-making, their schedules are full to the edge. Along with taking care of financial management, they need to take care of various other tasks and should be able to prioritize them to make the most from their time.
- Along with focusing on numbers, they should also focus on clients as well. Thus, accountants should keep a strong focus toward meeting client requirements and should understand the industry, client needs in detail. This can only help them to decide which accounting rules and economic measures could fit the business.
- Accountants must have great creative skills. They are the persons who always practice out different thinking to provide and come out with creative outstanding solutions. As many of the cases of clients could not be solved through textbook cases and require special attention and a degree of creativity.
- They should be extremely trust worthy, as with the kind of information they deal with is highly confidential in nature. One of the most important features accountant posses is that he/she is always professional and never shares any knowledge to third party.
By Shanvi Singh