Accounting for Real Estate Business
Accounting for Real Estate Business is one of the In Real estate/property business you have to keep record of properties and other expansions, this segmentation allows you to know more about your business in depth. The accounting software selection for real estate companies can be a challenge without proper guide and the specific requirements.
Not everyone can afford to have developed own accounting application, at some point the user have to choose on the basis of best judgment. Selection of accounting application, keeping in view the requirements and challenges being faced, by the Business owner can be crucial at times.
The following are some guidelines to choose accounting software for your real estate business and enjoy next level accounting.
In real estate industry there are three types of revenue lines in general.
- Sale of real estate (owned & agent-ship)
- Leasing / sub-leasing properties
- Managing Properties (Sold, Leased and others)
Problems faced by Business Owners
- Cash collection
- Post-dated cheque
- Managing Projects
- Location based Accounting
- Receivable Management
- Financial Reporting
What can real estate accounting software do for you?
Tracking financial data and properties is a major undertaking. Without the right software tools it can easily become inefficient and interfere with your ability to successful generate revenues, even with an attractive portfolio of properties or developments.
Real estate accounting software systems amount to more than a way of tracking financial data, they are integrated information systems rich with industry specific features.
Property management specific tools
For property managers, software systems can identify late payments and run reports to spot deliquencies on demand.
Late fees can be calculated and applied automatically without the need to perform additional calculations. Information regarding your tenants and properties can be centralized into a single system, preventing data islands. With integrated, comprehensive property and tenant information, your staff will be better able to answer questions and quickly address issues.
Providing information to investors
For both sales and development companies, investors and owners view their real estate properties as an investment. They increasingly expect the ability to check on their investment status just like they would on securities. Online tools are a frequent component of real estate accounting systems, as they provide a convenient way to securely extend key business information to investors and owners.
Real estate specific software versus general accounting packages
Systems designed for real estate companies offer far more functionality than basic industry-neutral accounting packages. Solutions targeted toward real estate companies offer the ability to understand information about vacancies, tenants, and units as well as ongoing development projects and property maintenance.