How to Choose the Right Software to Simplify Your Real Estate Accounting
Let’s face it, bookkeeping for a business in the real estate industry, whether your niche is sales, management, construction or tax and legal services, is complicated. Unlike some other types of business, you must deal with fluctuating income, expenses, payroll and property values, not to mention a heavy load of government regulations.
All these factors must be accounted for, completely and accurately, in order to control profit margins, satisfy clients and be prepared for tax filing. It’s a big hassle if you’re doing it the old-fashioned way. However, the right software will do many accounting tasks for you automatically, leaving you free to focus on your core business.
Your business may have one or more of these types of workers:
• Salary plus commission
• Independent sub-contractors
Choose accounting software with a payroll feature capable of calculating commission and tracking those amounts for income tax withholding. Similarly, you should be able to identify payments made to independent contractors.
Whether your people are out on a building site or showing homes to prospective buyers, a cloud based management app will give them access to the office. At the same time, the office is tracking their activities. Info on everything from materials used to schedule changes can be updated and shared with everyone in real time.
A system that integrates all departments not only saves time and money for workers and managers, it also means that data from the field is incorporated into the books automatically, eliminating duplicated effort and potential errors for the accountant.
It only makes sense to enter transactions on a daily bases, rather than wait until a week before your tax return is due. Keeping figures up to date will also reveal when and where you’re losing money, in good time to nip the problem in the bud.
Consider accounting software that integrates with your bank, recording every transaction automatically and saving you a great deal of time and paperwork. Plus, you’ll be ready for an audit any day of the year.
Cloud-based software offers another advantage: the ability to see your financial reports or share data with your accountant anytime, anywhere. And with no need for in-house servers to store your data, you’ll reduce IT expenses as well.
Xendoo believes that cloud-based accounting is the right choice for any real estate business looking to increase growth while reducing inefficiencies. By automating bookkeeping chores, we eliminate the hassles, the mistakes, and more than half the costs of traditional accounting. Result: your business stands ready at every moment to meet challenges and seize opportunities for success.