Real estate bookkeeping is crucial for maintaining accurate financial records for real estate businesses. It involves tracking income, expenses, and transactions related to property sales, leasing, and management. Below are the main points with expanded details:

1.      Income Tracking

  • ·         Record rental income, property sales proceeds, and commission-based revenue from transactions. Ensure all rental agreements, sales contracts, and commission statements are correctly documented.
  • ·         Monitor payment schedules for tenants, ensuring all payments (monthly rent, security deposits, etc.) are collected and recorded timely.

2.      Expense Management

  • ·         Track operational costs such as property maintenance, utilities, taxes, insurance, and legal fees. Categorize these expenses accurately to avoid errors.
  • ·         Property managers should track expenses for each property separately to maintain clarity in budgeting.

3.      Depreciation

  • ·         Real estate properties depreciate over time, and bookkeeping should reflect this. Depreciation is a non-cash expense that can affect the net income.
  • ·         Use appropriate depreciation methods (e.g., straight-line or declining balance) for tax purposes.

4.      Cash Flow Management

  • ·         Maintaining a balanced cash flow is key for real estate businesses. Ensure sufficient liquidity for property maintenance and other operational needs.
  • ·         Regularly monitor cash inflows (rent payments, sales) and outflows (mortgage payments, operational costs) to avoid liquidity issues.

5.      Financial Reporting

  • ·         Prepare monthly or quarterly financial statements, including profit and loss statements, balance sheets, and cash flow statements.
  • ·         Financial reports help assess profitability, identify trends, and make informed investment decisions.

By managing these aspects efficiently, real estate businesses can maintain clear financial records, comply with tax regulations, and ensure long-term financial stability.

Our experienced team can handle any bulk amount of transactions, and the reporting will be accurate and tax-savvy. Our service charges are competitive with others.