As a real estate company, you are always looking for ways you can save money. One of the best ways you can do to accomplish this is to hire outside help someone to keep track of your bookkeeping rather than hiring someone in-house full-time.
Before going too far into it, it’s good to have a reminder of what the difference is between real estate bookkeeping and accounting.
Bookkeeping is recording and tracking the daily transactions and expenses that the company makes. This includes:
- Card expenses made on a debit or credit card
- Tracking all financial transactions into the business
- Recording invoices
- Balancing the books
- Issuing payroll
Accounting is the overall tracking of your business expenses, assets, and finances as a whole including capital investments. This includes:
- Creation and preparation of financial statements
- Detailed reports on profits and losses
- Analysis based on the financial statements to create a fiscal strategy
- Handling the taxes of the business
So how exactly can hiring outside help with bookkeeping and accounting save you money?
1. You end up doing your finances right the first time. This saves on having to go back through
2. Make bookkeeping something that is an everyday thing rather than something that happens at the end of a week, month, or quarter. For the bigger projects, set aside time each month to go over your finances as a whole to fulfill the accounting aspect of the task.
3. Keep accurate and up-to-date information about your daily transactions. This includes having detailed information of each sale throughout the day.
Doing your own bookkeeping and accounting as a business owner can be a very risky thing. Not having finances as your expertise can lead to mistakes on your books that can cost you a lot of money. Moreover, you have enough responsibilities to attend to, and that’s where you should focus your abilities. If you spend too much time trying to get your finances in order, it may be time to hire outside help.