The percentage of professionals who actually run monthly financials in the real estate industry is dismally low. Unfortunately, you just can’t have a real business without the clarity that comes from checking in on your financial situation every single month. How will you know if you’re meeting goals and moving closer to success if you only look at your financials at tax time?
Chart of Accounts
Decide how you want your chart of accounts to look. Figure out what you want and need, and turn your chart over to your bookkeeper. There are different approaches to a chart of accounts, but ultimately, your financials need to make sense to YOU. If you’re using the chart of accounts in the REBS Toolbox, your bookkeeper won’t have any problems organizing your transactions and generating the reports you want.
Revenue, Cost of Sales and Operating Expenses
Broken down to its basic elements, the features of your business that you need to track and know is your revenue, cost of sales (by list and buy) and operating expenses. That’s it. From there, you can figure out how your business is doing. And that’s the score that really counts!
Monthly Financials are a Must
You’ll find that a Quickbooks-certified bookkeeper is surprisingly inexpensive. I have a large number of transactions each month but still only pay a few hundred dollars a month for a bookkeeper. Look for a bookkeeper who is diligent, efficient and accurate.
If you’re not checking your monthly financials, stop what you’re doing and get started on this now!
Take action today!