Real Estate Bookkeeping

Here Are The Reasons You Need An Outsourced Real Estate Bookkeeper

Posted on 23/09/2022

Outsourced Real Estate Bookkeeper: Running a real estate business is no small task, even if it is a small business. You have to deal with multiple clients demanding your full attention on top of regulation compliance, market volatility, internal operations, and a multitude of other responsibilities. One of those responsibilities that can add significantly to the difficulty is the management of financial transactions.

Pinning down exact numbers for multiple property transactions in a dynamic and highly-regulated environment while seeking to profit and save on taxes requires the deft touch of a capable professional. Such an expert can be found in an offshore real estate bookkeeper service agency. They perform a multitude of financial tasks for your business to keep it in line with regulations while assisting you with financial responsibilities beyond mere bookkeeping.

Tables of content:

  1. The Differences Between A CPA And A Bookkeeper

  2. The Benefits OF Hiring An Offshore Real Estate Bookkeeper

If your real estate business needs an outsourced real estate bookkeeper but are unsure about the benefits they bring to the table, and how they differ from a CPA, then this article is for you. Continue reading to learn more about how they can increase your ROI and brand value in the market.

The Differences Between A CPA And A Bookkeeper:

You may be wondering about the need for a Certified Public Accountant (CPA) with a bookkeeper already present. The reason is that while their job profiles may overlap in some areas, the two roles are vastly different.

A CPA can be considered a superior role compared to a bookkeeper as they carry out more responsibilities than the latter. An outsourced real estate bookkeeper, for instance, cannot perform the following duties that a CPA can:

  • Prepare audited financial statements for group investors
  • Represent an investor at an Internal Revenue Service (IRS) audit
  • Sign tax return and audited financial statement
  • Can provide financial advice in matters beyond the scope of a bookkeeper

While CPAs perform multiple functions, they come at a premium. You should decide if you need to hire one based on your requirements. Most firms providing real estate bookkeepers also have CPAs in-house for hire. Unless you have large tax filings and group investment management needs, a bookkeeper is who you should hire.

 

The Benefits OF Hiring An Offshore Real Estate Bookkeeper:

The real estate business by its very nature involves the movement of large sums of money and client confidentiality clauses. Thus, it may be instinctual as a real estate business owner for you to go with an in-house hire for your bookkeeping needs. And this is not without its merits either, since it means you get to have more control over those matters and the person.

However, the benefits offered by in-house bookkeeping for real estate are dwarfed by the disadvantages they bring along with them.

  • The hiring process can prove expensive and delay your work.
  • The bookkeeper may not be up to the job, requiring firing and re-hiring, all of which add to the time and other losses.
  • You need to invest in their equipment and office space
  • Quality bookkeepers come with high salary demands that can eat into your budget
  • It’s nearly impossible to get the required number of bookkeepers during high demand, and your present hires may not be able to keep up with the demand. This leads to delays and subsequent losses.

The better option is to go with outsourcing, especially offshore, as it offers multiple benefits. They can counter the downsides of in-house hiring while meeting all your requirements.

  • You Save On Expenses

The financial aspect of a real estate business is extensive, involving rigorous monitoring of multiple income and expenditure sources. The sums of money to monitor is also large, meaning a lot of work is needed to ensure the accuracy of the highest order. Such high-quality work is only possible by an experienced professional who comes at a high price.

With an outsourced real estate bookkeeper, however, you needn’t worry about losing much of your budget. The outsourcing agency brings cost reductions via the economy of scale. They will have many professionals working for them and numerous clients too which distributes the cost and brings down the price for you.

The services also tend to be offered by clubbing them into packages, each containing a different number. Some of these can be customized to your specific requirements too. Such categorizations also help in bringing down the costs. They also perform the job remotely in most cases, saving you the need to spend on office space and equipment.

By far one of the most important measures that help reduce bookkeeping costs for your business is the presence of the outsourcing business in a different country. If you get a bookkeeper from a developing country, you get to enjoy the savings brought about by currency exchange values while not compromising the quality of work. They will also be familiar with the local market regulations and idiosyncrasies, helping to prevent losses from failing to go along with them.

Thus, the cost savings gained is one of the top reasons businesses go with an offshore real estate bookkeeper for their accounting needs.

  •  You Save Time

The speed and accuracy of your financial management directly impact your ability to list properties on the market in time. Your bookkeeper should be able to finalize the necessary calculations in time for you to make critical business decisions at the most opportune periods. DIY bookkeeping and in-house hiring can both hamper these prospects as they introduce delays.

Get yourself an external bookkeeper from a reputed agency and you can forget about such delays. With a combination of their experience, expertise, numbers, the use of the latest tools, and other factors, the outsourced real estate bookkeeper delivers flawless accounting in record time. This turnaround time helps you maintain low time-to-market figures, helping you attract customers before your competition.

  • You Ensure Compliance

The real estate industry is filled with regulations, covering every aspect, from property conditions to the realtor’s taxation. You cannot afford to fail any of them if you don’t want brand value and monetary losses. But keeping up with them is also a challenge, especially if your operations are large, and involve properties across borders. It, thus, falls on the bookkeeper to ensure that all financial regulations are adhered to constantly.

Outsource bookkeeping for real estate and you will ensure that your books are in line with all applicable regulations. This is because the bookkeepers constantly update themselves about prevailing taxation and other laws governing their practice. Their years of experience mean that they can identify compliance issues in no time and introduce appropriate solutions for them, saving your business from getting into trouble with concerned authorities.

  • You Prevent Financial Mismanagement/Frauds

Doing your bookkeeping yourself could lead to scammers taking advantage of your inability to scrutinize your finances constantly. You may not have the experience to spot discrepancies before their impact. In rare cases, an in-house bookkeeper may work against your interests and participate in fraudulent activity. The blow you receive when their plans come to fruition can devastate your business for good and harm your customers.

Read More: Top Real Estate & Property Management Software 2022

Using an offshore real estate bookkeeper, you introduce the necessary competence to detect such fraudulent activity and preempt the mismanagement of your finances. The distance between your business and the remote bookkeeper means that there is no chance of the bookkeeper getting involved with defrauding your agency. Thus, you ensure the safety of your business transactions and keep your customers’ money safe.

  • You Get The True Picture Of Your Finances

With big numbers per transaction, and many such transactions occurring regularly, it’s easy to lose sight of the overall state of your business’s finances. This is especially true if you’re doing your bookkeeping and are not experienced. You can lose sight of the business’s financial picture as you tend to your other responsibilities, and this is never a good development.

With an outsourced real estate bookkeeper helping you, the picture looks different. They can consolidate the entirety of your financial status in a tidy and comprehensible report that provides a clear picture of the same. You also don’t have to deal with unwanted quantities of paperwork for the same. It helps you avoid mistakes like the overpayment of taxes and aids in the planning of your business’s future direction.

  • You Gain More Time

The lack of financial responsibilities on your shoulder, or even that of managing a team of in-house bookkeepers, means you get more time to concentrate on the core functions of your business. You and your employees gain a stress-free environment that’s conducive to increased productivity and high employee retention rates. The accuracy guaranteed by outsourcing bookkeeping for real estate means you free yourself from related worries too. You can strategize and organize your business better as a result.

Conclusion:

A realtor’s life is one of tense anticipation while waiting for a deal to lucratively materialize, and multitasking to manage various aspects of the business in the meantime. You don’t need the stresses that come with bookkeeping to add to those. Hire an offshore real estate bookkeeper and you need not concern yourself with stressful real estate financial management problems. You can look forward to an efficiently run business and error-free accounting that gives high ROI and helps build your brand’s reputation in the market.

Topics: Real Estate Bookkeeping


The Top Real Estate & Property Management Software You Should Know About In 2022

Posted on 22/07/2022

The digital age has revolutionized every aspect of daily life, including how people go about conducting real estate business. Top Real Estate & Property Management Software with an exhaustive set of features has replaced traditional property management activities, saving all parties involved time and money. Property management bookkeeping software also brings increased transparency and trust to transactions with the added convenience of having all necessary information in one place. It is not surprising that the property management software market stood at USD 3.04 Billion in 2021 and is anticipated to register a CAGR of 5.6% by 2030.

Tables of Contents:

A market with such high growth potential is bound to attract multiple industry players to seek their share. And that is the case, making it a tough decision to choose the right one for customers. The numerous products come with lots of features, requiring you to thoroughly scrutinize them for their capability to fulfill your needs before purchase. Today’s advanced software can automate many functions of real estate and property management like

    • Important Property Document Management
    • Accounting and Other Financial Operations Management
    • Tenant/lessor Management
    •  Rental Applications Screening
    •  Property Maintenance
    •  Inventory Tracking
    •  Marketing and Advertising Properties For Sale/Rent
    •  Facilitating Various Modes of Communication Between Concerned Parties

  •  Ticketing Fault Reports

Some other factors to consider before opting for a real estate management system are its pricing structure, underlying technology (such as cloud capability), how easily you can navigate its UI, and how well it can integrate other applications into it (like with project management software), geographical limitations (whether it covers local market only or international ones too), quality of customer support, and its mobile and web app user experience.

Here’s a look into the many popular property management systems of 2022, including each one’s pros and cons. Associated finance management software is present as well.

Buildium:

This is perhaps the first name anyone in the property management software market hears. Such is Buildium’s market positioning and value, earning the Best Commercial Property Management Software title.

Buildium is a cloud-based platform that provides several functions related to property management, real estate business operations, property and personal accounting, and leasing tools. Its easily navigable user interface enables you to access all vital functions with a few simple clicks/taps, whether on its mobile app or web portal.

The functions include property deals documentation approval, management of different communication modes between concerned parties, accounting, maintenance management, vendor and third-party services management, multi-property type portfolio management, related data analytics and reporting, community association management, etc.

Pros:

  •  Brings all real estate/property management functions onto a single platform. The list of options here is exhaustive.
  • 24×7 customer support
  •  Free trial for 14 days
  • Tailored to support Small and Medium-sized businesses
  • Anywhere availability due to cloud-based structure
  • Supports Windows, Mac/iOS, and Android OS and integration of many applications
  • Easy pricing structure with each plan covering Accounting, Maintenance, Tasks, Violations, Resident & Board Member Communications, and Online Portals.

Cons:

  • Expensive for individual users as it is for commercial users.
  • The Basic Plan only covers ticket support and not even live phone calls.

Appfolio:

Another popular real estate management system, Appfolio describes itself as a real-time property management solution. The platform seeks to streamline the usage of cloud tools for property managers with access to business metrics, multi-party communication via various channels, property maintenance tracking, and aiding vacant property advertising on the internet. Its rental support features include screening potential renters, processing rental applications, online rent collection, mobile inspections, the ability for renters to request maintenance requests, and a dedicated portal for owners to access reports and other statements.

Pros:

  • Reduces administration time by including all properties of various types on a single platform.
  •  Multiple communication channels for all stakeholders involved.
  •  AI support for automating tasks completely or partially
  • Strong emphasis on business metrics; is data-driven.
  • Owner’s portal for easier rental management
  • Real-time monitoring of properties and quick updates
  • Supports easy advertisement of properties in the market

Cons:

  • The focus is solely on property owners and managers, with a minimum property unit number being 50 for its basic Core plan.
  •  Is expensive as every property unit carries additional investment along with a monthly charge for each of the two plans-Core and Plus.

Hosthub:

Formerly Syncbnb, Hosthub was created to support owners and property managers dealing with short-term vacation rentals. This unique rental property management software isn’t a full-fledged one like the others on this list. Instead, it helps synchronize your listing calendar present across various booking sites. It updates your calendar in real-time and comes with a guarantee of avoiding double bookings. Hosthub wants you to use it as an add-on to your existing software to reduce manual labor, double bookings, and other issues for your many properties.

Pros:

  • Simple, lightweight, and easy to use UI across mobile and web
  • Allows you to build your booking website with a fully integrated booking engine.
  • Supports over 200 channels
  • Savings increase for every added property if you go with its annual plan.
  • Has a 14-day free trial
  • Is a cloud-based property management software

Cons:

  • Does not offer full-fledged property management features
  • The need to use other platforms for the missing features can increase your overall expenses.

Yardi:

Yardi Voyager is the epitome of an exhaustive and comprehensive cloud-based property management software. It goes above and beyond that by stocking features in its service, with its USP being a long list of affiliate and subsidiary companies. You can manage all property types across locations. It has all the usual bells and whistles you can expect from such a service provider, including leasing management, realty operations management, workflow automation with AI support, data analytics and reporting, etc.

Its other notable features include centralized data access through its web-based dashboard, real estate accounting, compliance management, resident documentation and screening, and more. There’s also customization and third-party app integration. With its affiliates, it provides storage services (StorageCafe), an eCommerce site to shop for home and office supplies (Yardi Marketplace), property news (Multi-Housing News), etc.

Pros:

  • End-to-End real estate and property management across portfolios
  • Individual affiliates facilitate Ala Carte-style usage of required services without going through the primary service.
  • Plenty of documentation templates to choose from for all property usage situations.
  • Works well for small, medium, and large property management agents.
  • Secure accounting software for property investors and realtors, with PayScan automated invoice scanning and payable accounts workflow personalization.
  • Easy integration with multiple third-party applications and data transfer.

Cons:

  • Unintuitive and laggy user interface due to its web-only access. No mobile app.
  • Can be expensive, especially if you add affiliate services.
  • UI requires a steep learning curve to manage successfully.
  • Poor, unresponsive customer support.

Re-Leased:

Re-Leased is a residential and commercial property management software that is focused solely on leasing. It is a cloud-based, AI-driven software platform that covers all kinds of commercial properties like industrial, office, retail, and mixed assets. It provides a dashboard that works as a central hub for many related functions like property maintenance, task delegation to team members, collaboration, tenant communication and management, issue resolution, etc. This platform’s USP is its ability to integrate Google Calendar, Outlook, Microsoft 36, and other office applications. It is also known for the easy integration of Xero and Quickbooks bookkeeping software for realtors.

Pros:

  • Suitability for a range of property portfolios in the commercial space, including rental-residential.
  • Excellent third-party application integration, especially for real estate bookkeeping.
  • Ability to add any number of properties by paying per tenancy
  • Available on computers and mobile devices via web and app.
  • Stores data using enterprise-level security.

Cons:

  • Pricing can only be known by contacting the company.
  • Focus on the commercial side of real estate.

Honorable Mentions

MRI

Established in 1969 as Qube Global Software, MRI has an illustrious history of delivering comprehensive property management software support to enterprises. It boasts over 10,000 clients worldwide and works for commercial, residential, mixed-use, and student accommodation assets. Its vast feature set includes billing and invoicing, lease and rent-related function management, tax management, landlord and tenant database, rent tracking and transfer, insurance management, property maintenance and expense tracking, late fee calculation, etc. The downside is that you must contact the company to know the pricing.

Condo Control Central

This real estate management system is special because of its astute attention to detail. It offers the usual exhaustive list of property management functions as features like others in a dedicated management panel that you can customize and automate. But along with that, you get to log deliveries to your properties, manage resident parking permits, access incident reports, important records, and entry requests with heightened security features embedded into it. You can even send push notifications about your choice of events to your properties’ management staff, external service providers, clients, etc.

In Conclusion

Whether the property market is going up or down, you need to have a good property management system to keep your real estate and property management functions in order. You can decide on the best one for your needs by considering their features and benefits along with their drawbacks to gain a comprehensive picture of their suitability. While it may take a while to master using some of these, it will pay off in the long run with efficient and transparent property management, yielding high ROIs for many years

Topics: Real Estate Bookkeeping