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Choosing the Right Outsourced Accounting
Firm for Your Real Estate Business

Introduction

Accounting is said to be the backbone of any business. Since the stakes are high in the real estate business, you need to ensure the accuracy of transactions that occur on a daily or routine basis. As you will comprehend, your job as a real estate professional is to succeed based on your ability to develop and sell real estate properties. As your real estate company grows, your accounting function could become complex. One of the challenges you could face is keeping up with the increasingly challenging demands of sophisticated lenders and investors. Therefore, you should consider choosing the right real estate accounting outsourcing services provider for your real estate business as mentioned herewith in this blog:

How to Choose the Right Outsourced Accounting Firm

Real estate accounting consists of recording and analyzing financial information of various commercial or residential real estate properties. This is similar to regular business accounting, but there are specific subtle differences:

Accounting for Real Estate: A Comprehensive Guide

1 Determine Your Real Estate Accounting Needs:

At the outset, it's a wise step forward to determine what aspects of your accounting function you want to outsource. Since different outsourcing providers provide different services, it is a good idea to identify the services at the very beginning. If you need just bookkeeping, it might not be necessary to go for tax preparation, payroll processing, or financial processing outsourcing. On the other hand, you may want to outsource the entire accounting function. So, looking for a real estate accounting outsourcing firm that can provide you with a complete suite of outsourcing services might be prudent.

2. Look for Experienced Providers:

Once your accounting needs have been identified, check for the provider's experience and expertise in outsourced real estate accounting. This means you must align your experience and knowledge with the outsourcing provider's. Also, look for someone with a proven track record of delivering quality real estate accounting services.

3. Verify Credentials and Certifications:

It is a good idea to consider the qualifications and credentials of the outsourcing provider. Verify if a professional body accredits the outsourcing company or if they have certifications such as CPA or Certified Bookkeeper. Such accreditations indicate that the provider possesses a high standard of professionalism and excellence. In addition to checking for certifications like CPA or Certified Bookkeeper, it's prudent to check for client references to ensure qualitative and seasoned services.

4. Assess the Provider's Communication Skills:

It is advisable to assess the communication and customer service levels of the proposed real estate accounting outsourcing firm. Look for an outsourcing firm that is responsive to your queries and can communicate regularly and clearly. It would be better if the provider could offer a dedicated point of contact and be available to answer your queries when needed. Beyond receptiveness, consider the quality and clarity of communication the outsourcing firm provides. Assess their ability to understand and address your concerns promptly and comprehensively. Request examples of their communication processes or protocols to gauge their effectiveness in keeping clients informed and updated. A provider that proactively communicates potential issues or opportunities demonstrates a commitment to transparency and collaboration, fostering a strong working relationship.

5. Evaluate the Pricing Structure:

Consider the pricing structure the potential outsourcing provider quotes. Again, verifying if the provider offers a transparent pricing model and is willing to work within your budget is a good idea. Consider providers who can provide flexible pricing models such as hourly billing or a fixed fee. While transparency in pricing is essential, also analyze the value proposition the outsourcing provider offers. Assess whether the quoted prices align with the quality and range of the services provided.

Additional Considerations When Choosing an Outsourced Accounting Provider

In addition to determining your real estate accounting needs and evaluating the experience and qualifications of potential outsourcing providers, there are several other crucial factors to consider:

  • Client Testimonials: When selecting an outsourced accounting provider, consider looking for successful partnerships or client testimonials. These examples can add credibility to your decision-making process and help you understand the practical benefits of outsourcing.
  • Data Security and Compliance: Ensure that any outsourcing provider you consider has robust data security measures. Verify their compliance with relevant regulations such as GDPR or industry-specific standards to safeguard your sensitive financial information.
  • Scalability and Growth: Look for a provider who can accommodate the scalability needs of your growing real estate business. Ensure they have the flexibility to support expansion into new markets and adapt to evolving accounting requirements as your business grows.
  • Onboarding Process: Understand the steps involved in the onboarding process and how the transition from in-house to outsourced accounting will be managed. Emphasize minimizing disruptions during this transition phase to maintain operational efficiency.

Considering these additional factors alongside your specific accounting requirements, you can make a well-informed decision when choosing the right real estate accounting outsourcing firm for your real estate business.

Final Thoughts

To conclude, outsourcing your real estate accounting needs is a great way to reduce costs and efficiency for your real estate business. However, it is crucial to choose the right outsourced accounting provider. Following the steps mentioned above makes it easier to identify a provider who can meet your accounting needs. So, you can leave the accounting to the experts while you can focus on your business! At The Real Estate Accountants, we offer numerous benefits for your business. This includes access to experienced accounting professionals, reliable and efficient financial management, and cost savings, giving you more time to focus on your core business activity. Our team can provide high-quality accounting services to your real estate business, so we are committed to achieving your financial goals. Let us know how we can help you optimize your real estate accounting process and drive business growth.