Accounting and Financial

Investing in real estate is a tax-friendly way to build wealth, and it requires detailed and reliable books and records. Starting building your systems today.

What Is Accounting and Financial Reporting?

Like any business, real estate investment involves consistent and careful management of your finances and records. Accurately tracking your income and expenses ensures you’re effectively managing your portfolio and analyzing your operations with reliable data. It also provides the information you’ll need when it comes time to file your taxes or make strategic decisions about your investments. Working with a qualified and specialized bookkeeper is the best way to ensure your books and records are organized, reliable, and available when you need them.

Accounting and financial reporting is especially important for real estate investors and business owners because lenders rely on your books in addition to your tax returns to qualify you for loans. As you are growing and scaling your portfolio, your time is best spent on analyzing and acquiring deals. Adding a trusted real estate accountant to your team allows you to focus your time on more critical tasks with confidence that your financial data is being tracked and reported accurately and timely. 

Common Challenges Real Estate Investors Face Without a Qualified Bookkeeper

• Lack of organization: If your books are a mess, and you don’t know where to start, you’re not alone. But continued disorganization could set you up for costly corrective action the longer the issue compounds, so now is the time to get on track. 
• Limited visibility: Without clear insight into your income and cash flow throughout the year, it’s impossible to see the “big picture” of how your business is performing—and where you could improve.
• Poor collaboration: Working with a real estate CPA who handles both your tax and accounting needs allows for streamlined transition from monthly bookkeeping into annual tax preparation without the need for information to change hands. Communication should be smooth and seamless; otherwise, you’re taking time away from core business activities.
• Inefficient processes: What is your time worth, and how much time are you spending on bookkeeping? If you quantify your time, you might be surprised to learn that it is actually more cost-effective to outsource your accounting responsibilities to focus on more high value tasks like growth and management. An inefficient approach to accounting could be costing you more time and money than you think. 

Aiola CPA Accounting and Financial Solutions

Real estate investing requires robust bookkeeping and warrants specialized accounting knowledge and expertise. Our real estate accountants have the knowledge and bandwidth to handle your comprehensive accounting and financial reporting needs with the following services. Here’s how we do it:

• Thorough checkup of your books: Our real estate CPAs will assess the current condition of your books and support you through the setup or cleanup process.
• Data entry and reconciliation: We meticulously enter every income, expense, and journal entry transaction to ensure no stone is left unturned and no tax deductions are missed. Each month, we reconcile all of your business bank, credit card, loan, property management, and any other reconcilable accounts to verify the accuracy of the data within the books and match them to your monthly statements.
• Financial analysis: Through interim financial analysis, we’ll provide detailed reports and guide you through our findings.
• Seamless, tech-driven approach: We leverage user-friendly technology to communicate and transfer documents, so we can be efficient with our correspondence. 

About Aiola CPA

Keeping track of your real estate investments can be complex and time consuming without the relevant accounting expertise and knowledge. As experienced real estate accountants, we take our own advice and invest in real estate too—so we know exactly how important financial analysis is. 

We’re also committed to decoding complex tax terms and clarifying the need-to-know accounting information that affects your business. Being 100% virtual makes our paperless services more accessible.Trust our real estate CPAs to be available when you need us and to communicate efficiently and effectively. Contact us today to learn more about our accounting and financial services.