Real estate accounting – you have to do it. But, it’s time-consuming, complicated, and a hassle you don’t have time for.
If you cut corners with your accounting to save a little time, you’ll have a big headache come tax time. Sloppy accounting can also cause problems with your agents if they’re paid late or incorrectly.
So, you need accurate accounting – without the stress of doing it manually. That’s where real estate accounting software comes in. With the right software, you can improve accounting accuracy, efficiency, and productivity – all while saving time.
Ready to make real estate accounting stress-free? Let’s get started with the first way to take the stress out of accounting – automation.
Most real estate accounting tasks are data entry. Whether it’s transaction data, commission calculations, agent billing, or any other accounting task, you team has to spend hours every week on accounting data entry.
Not only is this data entry a time suck for your team, preventing them from focusing on high-value tasks. It also increases the risk of costly errors. One misentered number can lead to late or incorrect agent payments, discrepancies at tax time, and even transaction hold-ups.
To reduce manual data entry errors and the stress around getting everything right, you need real estate accounting software. This software can automatically move your data through your transaction management software into accounting, commissions, and franchise reporting systems. That way, your team hardly has to do any data entry.
By automating accounting data entry, you and your team don’t have to worry about mistakes. And, your team frees up hours each week to focus on clients or other value-adding activities.
Real Estate Focus
Real estate accounting is specialized. However, most accounting systems are generic to any industry. They just aren't’ designed to easily work with transaction and commission data. So, you waste hours hunting through your accounting system – without any guarantee you’ll find what you need.
To fix this, you need an intuitive accounting system designed specifically for real estate. The right real estate accounting software can make your accounting easier with simple dashboards, an easy-to-navigate menu, clear tasks, and more. And, as part of a full back office system, you are not constantly re-entering data.
Making your real estate accounting more intuitive with the right software can make your accounting easier and stress-free.
One of the most important parts of an accounting system designed for real estate is agent payments and billing. Your team has to keep track of any agent charges. And, your team has to pay out the right commissions on a timely basis.
Keeping track of all agent-related expenses and income can be time-consuming. And, it’s easy to forget small agent charges. However, over time, those small charges can add up to a lot of lost income. Plus, your agents expect to be paid promptly. If your team is spending so much time trying to calculate commissions, it can delay agent payments and lead to unhappy agents.
Instead of making your team handle agent payments and billing manually, you need real estate accounting software that can do this for your team. This software can have agent credit cards on file to collect bills automatically. That way, you maximize income collection – while reducing work for your team.
And, the right real estate accounting software can pay agents with direct deposits or checks right from the platform. Plus, the software can automatically calculate commissions. With real estate accounting software, you can cut out time-consuming steps that delay agent payments. That way, you can keep your agents happy and eliminate stress around agent payments and billing.
Every real estate team has different accounting needs. Yet, most accounting systems are a one-size-fits-all. So, if you want to use an accounting system, you have to change your accounting processes. Or, you need to use other tools to make the accounting system work for your brokerage.
However, trying to change your processes or using multiple accounting tools can be confusing and stressful for you and your team. Plus, a lack of customization can lead to accounting errors as your team tries to navigate a system that doesn’t align with your processes. These errors can lead to stress and wasted time.
So, you need a real estate accounting system that’s customizable. With the right real estate back office software, you can customize your chart of accounts, commission splits, agent billing and payments, and more.
That way, your real estate accounting system matches your accounting processes – eliminating confusion, stress, and errors.
You likely have multiple systems to manage your real estate accounting. From tools like QuickBooks, to spreadsheets, to transaction management systems, and more, your team has to navigate an entire real estate tech stack to do any accounting.
Switching between accounting tools can reduce your team’s efficiency and productivity. Plus, it can encourage data errors because your team has to move data between software tools. And, having so many tech tools can be expensive.
To make your real estate accounting simpler, you need to consolidate your real estate accounting tech. Instead of having a separate tool for every accounting task, you should look for real estate accounting software that can do it all. From transaction data, to commission calculation, to invoicing, to agent payments, and more, you should have one tech tool that can do everything.
That way, you can eliminate the stress (and expense) of navigating different accounting platforms and tech tools.
Wrapping It Up
Real estate accounting can be stressful. But, it doesn’t have to be. With the right real estate accounting software, you can eliminate accounting stress through automation, customization, an intuitive user interface, agent functionality, and consolidation.
Looking for real estate accounting software to make accounting stress-free? Brokermint’s modern, cloud-based platform has everything you need to simplify your accounting. Plus, with five modules – transaction management, commission automation, agent management, analytics/reporting, and accounting – you can make your entire back office stress-free.
Learn more about how Brokermint can help take the stress out of real estate accounting today.
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