Real Estate Accounting done right by a CPA.
Real Estate Accounting done right by a CPA.
Photo credit: Mentatdgt
The general impression people have of accountants is that they only have a role to play during tax filing or maintaining financial records for a company. In reality, accountants, and in particular, Certified Public Accountants (CPA), have a wide range of responsibilities in any industry or business. The CPA is one of the highest standards of qualification for accountants, recognized across the globe.
During the COVID-19 pandemic, millions of people across the world lost their jobs, but some positions are still in demand, while newer ones are coming up every day. Accountants have managed to stay busy throughout this period. Here are some reasons why you would need CPAs for real estate accounting in your business.
The roles of a CPA candidate in Real Estate
If you're in the real estate business, you know for a fact that the accounting and real estate bookkeeping process is strenuous work. Although you would have some knowledge of finances, the expertise of one with a CPA qualification is unmatched. A certified public accountant would have put in hundreds of hours of work and spent a year gaining experience, so, evidently, you don't have time to pass the CPA exam. Here are some other benefits of hiring a real estate CPA.
Every businessman needs to file taxes and returns, and the processes can be particularly harrowing in accounting for real estate companies. Accountants also perform tax audits in case of discrepancies or errors to make sure your businesses' books are clean.
They provide expert insights
A real estate CPA is involved in the budget, planning, investment, and tax reporting activities, and also aids investors to make the right decisions. Asset evaluation and appraisal that are done by accountants will help the investors save themselves from market shocks.
If you buy and sell real estate property regularly like a real estate flipper or deal with rental properties like a landlord, an accountant can take you a long way.
They save you a lot of money
A CPA accountant manages your books and makes sure all your finances are in good shape, and they also come up with smart ways to save you money. Real estate CPAs take advantage of the discounts, incentives, and tax breaks that are offered by state and federal governments. They can also help you negotiate deals better and avoid pitfalls that could cost you money.
In today's world, the pandemic has disrupted the traditional ways of working, leading to a lot of new and unexpected expenses. Companies are investing in measures to ensure the well-being of their employees. Hiring a CPA can ensure your funds are appropriately allotted to the right resources.
They provide elp in recruitment
In the real estate business, you will invariably need to deal with investors, lawyers, insurance agents, and various other professionals. Certified accountants also have a knack for helping you hire the right people for your business because they are well-versed with different business structures and levels of legal protection.
Moreover, recruitment is an expensive process, and accountants can formulate strategies to help you cut down costs wherever possible.
How should you hire an accountant?
There is a lot of thought and investment that goes into hiring any new professional, particularly a high-level position like a CPA accountant. Here are some useful tips for picking the best candidate.
Among all CPA candidates, look for the ones with accounting and real estate specialization. All CPA-certified individuals need to have work experience, so someone who has worked in the same sector can understand your problems better.
Ask for referrals. Their exam score is one aspect, but to gauge their work ethics and professionalism, a previous employer is the best source of information. Here is a detailed guide on the best way to check someone's references.
Read reviews and gather information from wherever you can before the interview. Checking accountants' LinkedIn profiles is a good starting point to understand their background and skills.
Lastly, when the accountant has met all your other needs, ask for the fees they charge. The most qualified accountants often cost a fortune, but their reputation would demand it. Get quotes from several accountants before hiring the most suitable one.
These are some reasons why you should hire an accountant for your business. Real Estate accounting is a challenging job, and those who put in the effort to clear the CPA exam know the job better than anyone else. In these trying times, every business is trying to take advantage of their talent to come out on top in the economy post-COVID.
It would be best if you encouraged those employees interested in pursuing this certification to have a look at these prep courses to become a CPA so that they can contribute to your real estate business and have a considerable advantage.
Bryan Kesler, CPA is a passionate CPA exam mentor with a mission of helping all CPA Candidates struggling to pass the CPA exam find success. As a business owner and licensed CPA, his first priority was to find a firm who could manage his own accounting and provide him with CFO services. He understood that if he was to stay focused on his singular goal of helping as many CPA candidates pass the CPA exam, he shouldn’t be the one to handle his own accounting or tax services.