Navigating the complexities of the real estate industry requires more than just strategic investments and efficient operations; it demands smart financial management. For many firms, balancing multiple roles often pushes back-office accounting—an essential function—to the sidelines. Real Estate Investment Trusts (REITs) and property management firms, engrossed in the ebb and flow of property transactions, find themselves tangled in a web of financial paperwork. Each moment spent sifting through invoices and reconciling accounts means a missed opportunity to explore new deals or enhance property portfolios. The time dedicated to these necessary but time-consuming financial tasks significantly detracts from the overarching goal of business growth.
In the hustle and bustle of real estate deals, the tedium of financial paperwork often takes precedence. During the whirlwind of property management, real estate professionals find themselves entrenched in an unexpected quagmire: the labyrinth of accounting and financial management. From keeping track of rent to handling property expenses, they spend much time working on numbers and documents. This heavy focus on financial tasks detracts from their ability to grow their business. Also, juggling between managing properties and dealing with financial paperwork blurs their path to expanding their real estate ventures.
This is where outsourcing finance and accounting (F&A) operations can prove to be a strategic game-changer. It provides a solution that allows real estate firms to remain devoted to their core functions while experts handle their financial and accounting back-end operations.
Embracing the Potential of Outsourcing
Outsourcing, a practice gaining immense traction in the real estate sector, offers a strategic solution to alleviate the burden of back-office accounting. Rather than drowning in the sea of spreadsheets and numbers, real estate professionals can redirect their focus to core operational aspects by entrusting their financial functions to specialized service providers.
Outsourcing these critical financial services allows companies to leverage the expertise of professionals dedicated to handling Real Estate bookkeeping, AP, AR, GL, and Management Reporting. This strategic shift enhances operational efficiency and empowers real estate firms to make informed decisions, driving growth and profitability.
Let’s delve deeper into the compelling benefits of outsourcing real estate back-office accounting operations.
Uncovering the Benefits of Outsourcing
Gain strategic insights
Outsourcing F&A operations gives real estate firms enhanced visibility into their cash flow, profits, and crucial performance metrics. This strategic move allows for a more meticulous tracking of expenses, enabling firms to uncover potential areas for cost reduction. By closely monitoring expenditures, real estate professionals can identify inefficiencies and optimize spending, which significantly reduces operational costs. This newfound clarity into financial insights sharpens decision-making and paves the way for improved profitability and sustainable growth within the real estate business landscape.
Compliance made simple
Regulatory compliance is a critical aspect of the financial management of any business. However, it can be particularly challenging for real estate firms due to complex regulations like FASB ASC 842. Outsourcing extends a safety net to real estate firms, ensuring meticulous handling of tax filings, payroll management, and other regulatory tasks. By entrusting these responsibilities to adept professionals, firms mitigate the risks of errors or oversights that could lead to penalties. The peace of mind of having experts proficient in compliance matters on their side is invaluable. These experts navigate the intricate web of regulations, guaranteeing accurate and timely submissions while adhering to legal requirements. This assurance safeguards the firm from potential financial penalties and instills confidence in its ability to operate seamlessly within regulatory frameworks.
Improve decision-making with scalable support
As your real estate business grows, so do your financial management needs. However, scaling your business doesn’t necessarily mean you need to hire new finance staff. Outsourcing facilitates rapid business growth without necessitating the hiring of additional finance staff. These services dynamically adjust and expand with the company’s demands, supporting their expansion goals without the burden of recruiting or managing an in-house finance team. Real estate firms can confidently pursue growth opportunities, knowing that their financial backbone adapts effortlessly to accommodate increased workload or scaling operations. So, this scalability ensures that financial functions remain efficient and effective, allowing firms to focus on their core business objectives without constraints related to staffing or resource limitations.
Focus on what you do best
Outsourcing provides a liberating shift, freeing up valuable time and mental energy for real estate professionals to concentrate on their core competencies: managing properties and exploring new deals. Therefore, real estate firms could unburden themselves from these time-consuming activities by delegating paper-pushing tasks and routine financial responsibilities to specialized professionals. This liberation allows professionals to direct their focus towards strategic initiatives, nurturing client relationships, and seizing new investment opportunities, thereby propelling their business growth trajectory without the distraction of administrative burdens.
Outsourcing F&A operations is like having a dedicated team of financial experts who take care of back-office accounting. They manage everything from invoice reception and categorization to data capture, coding, and verification.
LevelShift as your Partner
LevelShift is an industry leader in back-office accounting services and offers comprehensive solutions tailored to the unique needs of real estate firms. Also, we handle everything within the Yardi Database ensuring seamless integration with your existing systems. Our commitment to operational excellence allows us to reduce your operating costs and boost profits significantly. Furthermore, our lease management services ensure strict compliance with complex regulations like FASB, ASC 842, providing peace of mind and more time to focus on what you do best – managing and growing your real estate portfolio.
Our suite of F&A offerings includes Real Estate Bookkeeping, Accounts Payable (AP), Accounts Receivable (AR), General Ledger (GL), and Management Reporting. By entrusting these critical tasks to LevelShift, Real Estate Companies, REITs, and Agents can help their clients meet compliance and reporting deadlines, thus saving valuable time and resources.
Embrace the power of outsourcing and let LevelShift handle your back-end operations. Get in touch with us today and unlock your firm’s profitability potential.
