VIRTUAL BOOKKEEPING SERVICES FOR REAL ESTATE INVESTORS MADE EASY
by Rathod Jay, from JDK Accounting - Accounting Outsourcing Company, on Jan 4
If you are a real estate investor, it is highly recommended to set up a robust rental property Virtual bookkeeping services to ensure the smooth running of your business and track your progress.
If you are a real estate investor, it is highly recommended to set up a robust rental property Virtual bookkeeping services to ensure the smooth running of your business and track your progress. Hence, Bookkeeping for Real Estate investors can help in monitoring the income and expenses and separate personal and business accounts effectively so that the company can run efficiently.
As a trusted advisor, JDK Accounting , Inc., has over a quarter of a decade of experience in Online accounting and Bookkeeping services and their team of experienced and trusted advisors are available to provide Virtual bookkeeping servicesfor real estate investors.
Tips for choosing Virtual Bookkeeping for Real Estate Investors:
Maintaining records: Keeping records of various transactions enables you to create a back-up in case you need to substantiate a tax deduction claim; hence, saving both time and money.
Choosing an appropriate accounting method : Another important tip is to select the correct accounting method for recording transactions. For a well-established real estate business, where income and expenses can be recorded as they occur, not limiting it to when the cash is received or paid, the Accrual Method of accounting can be adopted. However, for a smaller set up with restricted cash flow, Cash Method is preferred to know the exact cash at any given moment.
Separate Property Accounts: Maintaining different property accounts for each property will ensure ease in reconciling the income and expense statement and the profit and loss statements. Also, it is advisable to maintain a separate file for all the supporting documents for each transaction.
Installing the right accounting software : In times of digitalization, installing the right accounting software can be highly useful in recording transactions. Some renowned and user-friendly accounting software like Quickbooks can help in systematically record the sales and avoid overlapping.
Categorization and Tax forms : It is essential to know what type of bookkeeping accounts you need for your business. Usually, real estate investors use Schedule E of the IRS.Also, the type of forms that are needed at the time of tax filing is essential to avoid substantial penalties at the time of filing. For example, forms 1099 and W-9 are required by all the employees and non-employees working for the business.
Getting a professional onboard : Another crucial aspect is to get a CPA (Certified Public Accountant) specializing in real estate on board. After all the hard work you put in to ensure the records and transactions are maintained accurately, a CPA will guide you through filing taxes and implementing the accounting practices correctly.
This is where the team of experts in accounting from JDK Accounting services creates a value add in Real estate Bookkeeping Servicesby helping in analyzing the financial performance of the business.
Get in touch with our Certified Accountants and we will get back to you within 24 hours!
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