To know how well your business is doing, you need a proper accounting system in place. Cash flows, profits, and losses are vital signs for the health of your business and help you take long-term strategic decisions to improve your profitability.
Accounting apps for real estate business makes it easier to keep an eye on the performance of your business. All the information you need is stored here. You can understand the impact of every financial transaction, big or small, on your business.
Real estate accounting helps the stakeholders in the business, like landlords, investors, and property owners, know how the company is doing. It helps you set benchmarks to analyze your performance and plan your future growth strategies.
To be successful in real estate, you need to know how real estate apps work. If you don’t understand technology, then hire a real estate accountant.
There are two ways a real estate business can maximize revenues, increasing rentals or decreasing costs. Real estate accounting will help you make the right decision after analyzing the financial reports.
Expense Analysis
Real estate accounting services allow you to check for any ‘leakages’ in expenditure like overpaying the supplier. It also covers utilities, property taxes, and insurance.
Debt Minimization
Whether it’s credit card interest rates or mortgage rates, you move to cheaper debt and zero interest rates with real estate accounting.
Accurate Valuations
Since most real estate rentals are long-term leases, it is essential to know the current value of your property. Real Estate accounting ensures that property is valued per the latest regulations and is accurate.
Property Taxes
Property returns need to be filed according to the type of property you own, and real estate accounting ensures that you adhere to the latest federal and state regulations.
Why Should we use Apps for Real Estate Accounting?
The real estate sector has upgraded itself by using technology effectively, and you need a business accounting app that meets modern real estate requirements. You need an integrated platform that helps you track all transactions so that performance analysis becomes easy.
Not only do you need efficient management of cash flows, but you also need the seamless performance of all bookkeeping tasks.
Benefits of Apps in Real Estate Accounting
Remote Accessibility
With employees based in different locations, remote access to your accounting systems is vital. An online accounting app seamlessly integrates with all your property-related business apps. It allows your employees and in-house staff to access all data need for any real estate transaction whenever they want. The software lets employees access the required data 24 x 7.
Easy Payments and Tax Filing
Payments and billing take up a lot of time, but with software, these functions are automated. You save time and can focus on the core business areas. The best real estate apps for investors ensure smooth fund transfers between different properties and ensure that the transactions are transparent and error-free. You can monitor your funds and reduce wastage by analyzing deviations from your budget.
Tax filing on time is an important responsibility for all businesses. You need to keep track of all financial transactions through the year and ensure that they are booked under the right heads in the books of accounts. Accounting apps for real estate business makes record keeping for tax purposes convenient by storing vital data in an organized manner.
The amount of tax you need to pay is calculated through the app so that you don’t have to worry about any penalties. Real estate accountants ensure that you file your returns as per federal and state rules.
Cost Reduction in Accounting Services
Using a business accounting app helps you cut down the cost of a full-fledged accounting department. You don’t need to worry about the payment of staff salaries in your accounting department, electricity bills, and other overheads. When you hire a real estate accountant, you don’t need to worry about your accounting requirements. From maintaining your records to filing your taxes on time, they take care of every step. You can take care of more critical issues like servicing your existing clients and expanding your customer base. You can plan your expenses and income to ensure that your business is operating in a tax-efficient manner.
Accuracy in Accounting
Manual accounting can lead to costly errors that lead to inaccurate calculation of profit or loss figures. Not only does your business suffer, but also if the regulatory authorities detect these mistakes, you pay a hefty penalty as well. The online accounting app eliminates the need for complicated mathematical calculations and reduces the incidence of data-entry errors. All these processes are automated, making them faster and more accurate.
Efficiency
Payments from customers and payments to vendors are the most important transactions in the real estate business. With a business accounting app, you can send timely reminders to your customers and make payments to vendors on time. This ensures optimal cash flow for your business.
Routine processes like bank reconciliations, managing receivables, or writing checks are automated and can be managed smoothly. Tracking work orders, back-end accounting, and payment processing are done efficiently.
Conclusion
You should focus on scaling your business to higher levels and leave the accounting part to a real estate accountant. You are assured of higher accountability, efficiency, and profitability.
You can monitor the performance of your business more efficiently with accounting apps for real estate businesses. Your employees can access accounting data when they need it and become more productive. Use an accounting app and watch your profits grow.
About Us
OHI is a fifteen-year-old real estate services company working with 50+ commercial and residential real estate developers, funds and property management companies across USA. Our deep expertise in real estate accounting, financial analysis, lease administration and asset management has helped clients cut associated costs by 40-50%. We currently provide these services to a portfolio of 75000 units across clients.
