How Real Estate Businesses Can Benefit by Outsourcing Accounting to OHI
November 15, 2022
OHI
To be successful in your real estate business, you need to retain your existing clients and scale your business by getting new clients. All of this requires an investment of a lot of time and effort.
If you focus on your business and ignore accounting, you could end up paying massive penalties for violation of Federal and State Regulations relating to accounting for real estate businesses.
On the other hand, if your staff spend more time keeping your accounts up-to-date, you could end up losing business since your customers will be unhappy. A catch-22 situation? Not really!
The smart solution is outsourcing your accounting needs to a professional accounting firm and focusing on your core area, real estate. But is accounting important for your real estate business? Let’s find out in the next section.
Does Real Estate Need Accounting?
Yes, it does! Here are some top reasons why your real estate business needs accounting:
Optimize Revenues
With real estate accounting, you can analyze your income and expenses. It lets you identify expenses that generate higher ROI (return on investment) and those that don’t add value. When most of your expenditure is an investment, your profits grow.
Control Wastage
Overpaying your suppliers is a waste of money. With accounting services, you can switch to a more cost-effective alternative and reduce wastage.
Minimize Business Debt
Professional accountants can advise you on cheaper debt options for credit cards or business loans. You can shift your debt to low-interest credit cards and lower your debt.
Business Valuation
What’s your business worth? Professional accountants can study your books of accounts to give you a fair and accurate valuation of your business. This will help you get business loans at competitive rates.
Long-Term Business Strategy
With professional accounting, you can check the rate of growth of your business and how you can achieve your target growth rate.
Compliance With Taxes
You don’t need to worry about compliance issues since accounting professionals know the latest tax updates for your business and your products.
In the next section, find out why outsourcing accounting is a better option.
Outsourcing Accounting to OHI is a Smarter Move Than Investing in More Staff
You get high quality and save costs. The fees charged by the firm are much lower than what you would pay for full-time or part-time staff in your in-house accounting department.
Save on Hiring Process
The time and cost spent on hiring staff for your accounting department would be saved, along with the time you spend training the recruit.
Focus on Business Growth
When you don’t spend time on accounting tasks, you can focus on your core business of providing better services to your customers and increasing revenues.
Pool of Experience
OHI have a team of experienced property accountants, and you get the benefit of the collective knowledge of the latest trends and regulations. You avail of all deductions and ensure you don’t pay the penalty for missing crucial deadlines.
Flexibility of Operations
Business goes up during peak times and falls during lean times. You can pay OHI through a variety of options (hourly/monthly/project basis). This flexibility optimizes your costs.
Power of Automation
With automation, the chances of making errors come down. There are fewer internal frauds. The software generates real-time reports to identify and resolve problems early.
Professional Advice
Your company can gain from the professional advice of accountants, and you can run your real estate business more efficiently.
Specific Ways OHI Can Help US Real Estate Businesses
Here are some accounting services for real estate provided by OHI:
Tenant Accounting
This includes move-ins, lease setup, and move-outs to cover the complete tenant cycle.
Accounts Receivable and Payable
Keep a tab on your payables and receivables with OHI’s accounts receivable and accounts payable services. Don’t miss out on rent collection or supplier payments!
Reconciliations
Ensure your accounting is up-to-date with bank account reconciliations, mortgage insurance, and taxes.
Prepare/Track Fixed Assets
Monitor the status of the properties in your portfolio with an automated fixed assets register. This will have new asset additions, write-offs, and property dispositions.
Financial Reporting
Get comprehensive monthly financial reporting along with the actual-budget variance analysis.
Rent Roll Analysis
Services provided under this feature are tenant analysis, location review, financial analysis, and more.
Lender Reporting
Get detailed information on property management summaries and leasing reports related to the guarantor, borrower, and your property.
Find the Right Accounting Partner for Your Business
Look for the following points when selecting an accounting partner for your real estate business:
Services Required
Determine the important accounting services your business needs, and then look for a firm that is offering that.
Relevant Experience
Your accounting firm should have extensive experience in the real estate industry, along with a qualified team to give you the highest ROI.
Reviews and References
You can check online reviews about the firm and ask for references from existing clients. Choose a firm that has experience with positive reviews since you need a long-term partner for success.
Conclusion
When you focus on your core and leave the accounting to experts like OHI, you maximize revenues. Spend more time with your clients and profit from the OHI experience. Get in touch with us now!
OHI Credentials
OHI works with 75+ Commercial & Residential Real Estate Clients across USA and Canada
OHI serves five of the Top 50 Real Estate Companies in USA
Handling accounting for 100,000+ units across USA
150+ Team Including Accountants, MBAs and Professionals
Low Cost Property Accounting Services: AP | AR | Reconciliations | Month End Closing | Financials | Year End Accounting | Reporting – VIEW HERE
