Streamline Your Real Estate Finances With Outsourced Property Management Accounting

Managing the financial aspects of a real estate firm can be overwhelming and time-consuming. From rent collection to budgeting and reporting, keeping track of all the numbers can take time and focus away from your other important tasks. 

Outsourced property management accounting can help. With accounting outsourcing, you can streamline your finances with the help of specialized professionals, allowing you to focus on growing your business. 

In this article, we will discuss the benefits of outsourcing your property management accounting and how it can provide specialized, actionable insights and solutions to help your company thrive.

Advantages of Property Management Accounting Outsourcing 

There are many reasons why property firms are outsourcing their finance and accounting processes, especially in real estate. Here are just a few:

Streamlined financial processes

Outsourced property management accounting professionals have the expertise and resources to efficiently manage your financial operations. They can handle rent collection, bill payments, and budgeting with precision and accuracy.

With specialized financial experts handling your accounting, you can rest assured that all of your financial processes will be streamlined and efficient.

Access to expertise

By outsourcing accounting tasks, you immediately gain access to experienced accountants who have specialized knowledge in the real estate sector. This ensures that your finances are managed accurately and according to industry standards.

Overhead cost savings

Outsourcing your accounting functions can also save you significant money.

Hiring and training in-house staff for accounting can be expensive. Data shows that the average cost of a new hire is almost $4,700. On top of that, the average annual salary of an accountant in the US costs over $78,000.

On the other hand, outsourcing allows you to pay for only the services you need. You can also hire accounting professionals from outside of the US in places like Latin America (LatAm), which enables you to save 30–70% on salaries.

Enhanced financial reporting

With outsourced property management accounting, you can expect to receive detailed and timely financial reports, such as income statements, cash flow statements, and accounts payable and receivable aging reports.

These reports provide valuable insights into the financial health of your business and help inform decision-making.

Compliance and risk management 

Outsourcing your accounting can also help ensure compliance with regulations and risk management. The specialized professionals handling your finances are well versed in industry regulations and can help mitigate any risks that may arise.

Ability to focus on other core business activities 

Outsourcing your property management accounting allows you to delegate time-consuming finance tasks such as bookkeeping and financial reporting. This frees up valuable time for you to focus on your core business activities, such as acquiring new properties and managing tenant relationships.

Key Outsourced Property Accounting Services

You can outsource a wide range of finance tasks, but here are some of the most common services property managers outsource:

Real estate accounting services 

Outsourcing provides you with the support of a dedicated team of professionals who are well versed in the complexities of real estate accounting. They can handle rent collection, accounts payable and receivable, budgeting, and financial reporting.

Lease administration 

Lease administration is a crucial aspect of property management accounting, and outsourcing this service can save you time and ensure accuracy. Professional accountants can handle lease abstracting, rent escalation calculations, and other lease-related tasks.

Cash flow projections and reporting 

Outsourcing cash flow projections can help you make informed financial decisions for your business. Additionally, professional accountants can generate detailed reports that provide strategic insights into your company’s financial performance.

Bookkeeping and financial statements 

Keeping track of financial transactions and preparing accurate financial statements can be tedious for property managers. Outsourcing bookkeeping services to professionals can ensure that your records are organized and up to date, giving you a clear understanding of your business’s financial health.

Financial modeling and analysis 

Outsourcing property accounting services can also help you benefit from expert financial modeling and analysis. Providers can forecast future revenue, analyze investment opportunities, and identify areas for cost savings.

How To Choose the Right Outsourced Property Management Accounting Partner

Once you decide to outsource, it’s much easier to work with an experienced staffing accounting firm or recruitment agency like Near to find the right candidates than trying to hire talent directly.

But regardless of the type of accounting provider you partner with, how do you choose from the many options out there? While your choice should reflect your needs and values, here are some critical traits you should always look for:

Extensive experience in the real estate industry

When searching for an outsourced property management accounting partner, it is crucial to choose a provider with extensive experience in the real estate industry. They will have a better understanding of your company and its unique financial needs.

For instance, Near has a pool of professionals with years of experience in real estate and property management. Our experts have a deep understanding of the complexities and nuances involved in managing finances for these types of businesses.

A dedicated team of accounting professionals 

Outsourcing your property management accounting means you have dedicated professionals handling your finances without the need to hire and train in-house accounting staff. This not only saves you time and resources but is often also a more flexible and scalable accounting solution. 

Portfolio of properties and clients 

When choosing an outsourced property management accounting partner, it is essential to consider their portfolio of properties and real estate clients. This will give you an idea of the types and sizes of businesses they have worked with in the past. 

Seamless integration with day-to-day operations 

It’s critical that your outsourced property management accounting activities seamlessly integrate with your day-to-day operations.

Your outsourced partner must be able to easily access all necessary financial data to provide real-time reports, allowing you to make informed decisions quickly. 

Up-to-date knowledge of regulatory requirements 

The real estate industry is subject to a wide variety of compliance requirements, regulations, and accounting standards, like the Generally Accepted Accounting Principles (GAAP). 

This makes it essential for businesses to stay up to date on any changes. An outsourced property management accounting partner can help ensure your company remains compliant with all relevant laws and regulations. 

Final Thoughts

Outsourcing your property management accounting can save you time, cut overhead expenses, and keep your financial operations accurate and compliant. However, choosing the right outsourcing partner is vital to successfully implement this approach.

With Near’s expertise in recruiting top talent from LatAm for the real estate industry, we can connect you with specialized professionals who can provide efficient and expert outsourced accounting services tailored to your business needs.

Don’t let financial tasks hold you back from growing your real estate company. Streamline your finances with outsourced property management accounting and see the difference it makes in your profitability and efficiency.

Contact Near today to learn more about our recruitment services and how we can help take your real estate business to the next level. Book a free consultation call to discover how you can hire top accounting talent within 21 days.