What Does a Real Estate Accountant Track?

Do you know where your money is going? Are you spending it right? Do you know what’s tracking in your account and what is not? The ability to answer these questions, and the appropriate action to take, are essential for anyone who manages money. For that reason, a real estate accountant near me is essential. If you’re reading this, you most likely own or manage a property. Whatever the property, real estate is a crucial part of your financial future. As such, having the right knowledge of how your money is being spent and keeping tabs on it is important no matter what business you run. So, let us learn more about real estate accountants and what they track.

What Does a Real Estate Accountant Do?

The accountant’s main function is to help you understand your financial situation and report to you on what steps need to be taken to strengthen your financial situation. This may include compiling your investments, balance sheet, and income statement report. The accountant will also keep tabs on your spending habits to ensure you aren’t taking on too much debt. This is perhaps the most important function of a real estate accountant near me and the only one independent of your real estate business.

What Do Real-Estate Accountant Track?

Real estate accounting is extremely important in several contexts. Although the scale is vastly different, the habits are typically the same. The following list contains some basic things you should record, no matter how big your operation gets or how well established it is.

Commission income

The income generated by real estate agents depends on the number of properties sold and the commission paid on each sale. Business accounting services help you track these figures to ensure no information is missing or recorded wrongly.

Association fees and expenses

Some real estate agents must pay a specific percentage of their commission as a percentage of their income as dictated by employment status. Additionally, real estate professionals often pay membership fees to organizations and other nationwide associations, which may be considered a business expense.

Office-related expenses

The role of an office administrator might require using common office supplies, equipment, and other administrative resources. Office rentals, event space, and recurring services such as cleaning and maintenance may be among these expenses. As office professionals increasingly operate in a mobile fashion, these costs may be minimal. 

Marketing costs

Advertising and marketing are how you reach out to your community about your services. These costs can include: 

a)    Website design and development costs

b)    Social media management

c)    Cost of print and newspaper advertisements

d)    Digital and online advertisements 

e)    Business cards

f)     Event sponsorships

Continuous education expenses

Keeping a real estate license valid and equipped with continuing education classes to stay up-to-date with the market is important. Ensure that your accountant has included these costs in their expenses for the year.

Travel, transportation, and mileage

It is impossible to think about all of the costs of travel, transportation, and mileage during real estate accounting procedures. Rather than forgetting to include these numbers in your accounting procedures, create an accounting procedure that does not ignore them.

Conclusion

Real estate accounting is an important part of financial management. Keeping track of all the information necessary to run a successful real estate business is essential. You should know what you track, why, how you’re spending your money, and where it’s going. As an accountant, your business accounting services provider will be able to help you maintain a healthy financial situation while improving your business experience.