Managing a real estate portfolio can be both rewarding and complex, with numerous financial and operational tasks demanding your attention. As you pursue your passion and grow your portfolio, you will realize there is still so much to do. There are vendors to be paid, tenants to be invoiced, lease renewals to track, CAM charges to calculate, employees to be hired and payroll taxes to be remitted timely. As your business expands, managing all these tasks internally can become overwhelming and hinder your ability to focus on growth.
7 Signs Outsourcing Your Accounting Is the Right Move
If any of these challenges sound familiar, it might be time to consider outsourcing your accounting functions. Below are 7 signs that can help you determine when outsourcing is the right move for your real estate business.
1. Is Your Organization Growing?
A growing real estate company will require additional resources such as time, money, human capital and expertise to sustain growth. This can become overwhelming quickly if not managed appropriately. A relationship with an outsourced accounting firm can alleviate this pressure and free up time to focus on moving the business forward. An outsourced accounting firm will have the resources to manage the additional reporting, process improvement and expertise needed to sustain the company’s growth.
2. Do You Want More Value for Your Money?
A relationship with an outsourced accounting firm is significantly more cost-effective than maintaining an internal accounting department. Not only do you save time and money on payroll reporting, but you also get access to a dedicated team of experts.
3. Do You Want To Improve Processes?
For a business to grow, it is essential to pay attention to details and have well-defined internal workflows and processes. This will prevent tasks from slipping through the cracks and causing more expenses. Outsourced accounting firms can help create internal workflow processes for a business to execute or for the accounting firm to take over. Processes can be developed in the following areas: internal controls, cash management for tenant receivables, accounts payable, distributions to investors and payroll.
4. Do You Need Help With Financial Decisions?
To make valuable and timely financial decisions, you need to have good data that is processed accurately. Working with an outsourced accounting firm ensures that your books are up-to-date and analyzed using the most appropriate accounting software for your business. This data can be presented to you in a wide range of financial reports that can help you make decisions to reduce costs, increase revenue and improve cash flow.
5.Do You Want To Reduce Compliance-Related Risk?
Over the last few years, we have seen an increase in new and changing tax and compliance-related laws. It can become difficult to keep track of all the changes and to remain compliant. An outsourced accounting firm will help a business reduce compliance-related risk. Outsourced accounting firms are already set up to be aware of changing regulations and are prepared to respond accordingly.
6. Are Your Investors Looking for More Timely and Sophisticated Financials?
An outsourced accounting provider will close your books on a monthly basis, ensuring that all accounts are reconciled and transactions are properly recorded. This helps you provide a complete set of accurate financial statements to your investors and management on a regular basis, improving your relationships with investors and allowing all involved parties to make decisions based on current financial information.
7. Is the Challenge of Maintaining Financials for Multiple Properties Becoming Too Much To Handle Internally?
Outsourced accounting offers a full-service team for a fraction of the cost of hiring in-house staff. By partnering with an outsourced provider, you will be able to easily leverage a full dedicated team to support your existing accounting staff. This scalable and customizable solution can grow with your business as your needs change and your portfolio expands.
The Real Deal: How a Real Estate Company Transformed Its Accounting Strategy
In the fast-paced world of real estate, keeping financials organized can be a challenge. This case study showcases how Withum helped a real estate management company improve efficiency, reduce risk and streamline its accounting processes with a fully remote solution.
Why Outsource?
As you manage and grow your real estate portfolio, it’s important to recognize when your accounting systems and processes are no longer meeting your needs. Whether you’re facing challenges with managing growth, improving processes or staying compliant with evolving regulations, outsourcing your accounting functions can be a game-changer.
By leveraging the expertise of an outsourced accounting firm, you can streamline operations, reduce financial risk and focus on scaling your business. If any of the signs mentioned resonate with your current situation, it might be time to take the next step and explore the benefits of outsourced accounting for your real estate company.
Contact Us
Ready to see if outsourced accounting is right for your real estate business? Contact our Outsourced Accounting Systems and Services Team today.
