Whether you are a just starting your real estate journey or are a seasoned investor with thousands of doors under management, your accounting team is integral to your success. If you want to take your accounting team to the next level, outsourcing the day-to-day operations is an effective way to do so. Let’s look at four major ways outsourcing your real estate bookkeeping can benefit your accounting team.
1. Increased Efficiency
By outsourcing some of the more tedious tasks, such as bookkeeping and data entry, your in-house accounting team can focus on more important tasks that require specialized skills and knowledge. In real estate, analyzing new deals, working with lenders, and conducting financial analysis are all areas where your team can be better spending their time. This allows them to work faster, smarter, and more efficiently. Having an experienced real estate accounting to partner handle these time-consuming tasks will free up valuable resources for more complex tasks that only an in-house accountant can handle.
2. Cost Savings
Outsourcing your real estate bookkeeping also offers cost savings in both the short term and long term. When working with a firm like REA, we typically see at least a 30% cost savings vs hiring in-house and this is before having to deal with hiring, training, and managing new employees. Additionally, since REA has a global operation with teams on three different continents, we can leverage areas of lower cost of living to bring down our hourly rates.
3. Access To Specialized Skills & Experience
Real estate is a unique industry that requires specialized accounting skills to excel. Working with an outsourced service provider gives access to highly skilled professionals who specialize in specific areas of accounting such as real estate. And since they are specialists, they are better equipped to handle complex projects that may be difficult for an in-house accountant with limited expertise or experience. Furthermore, leveraging a team of experienced real estate accountants allows your company to never have a single point of failure.
4. Improved Accuracy & Security
Outsourcing firms like REA have access to state-of-the art technology which enhances accuracy when it comes to managing financial transactions and records such as invoices, accounts payable/receivable statements etc., ensuring accuracy throughout the entire process from start to finish. Additionally, working with an external partner provides improved security due to its adherence to higher standards of data protection than those offered by most businesses internally when it comes to protecting confidential information such as customer payment details etc. At the end of the day, the service providers report to the owner of the company who is the ultimate customer.
Outsourcing the day-to-day operations of your real estate accounting team is a great way to take them up a notch while saving money, resources, and creating operations efficiencies in the process. It provides access to specialized skillsets and enhanced accuracy and security measures not achievable through traditional means while freeing up resources for more important projects that require specialized attention from accountants on staff.