Top 5 Accounting Mistakes in Real Estate Industry
                     Top Accounting Mistakes in Real Estate Business
If you are a real estate agent or investor, chances are high that you have already got
your hands in innumerable operational issues. Decision making, cashing in on slim
opportunities and sales and marketing are some of the core activities that you cannot
afford to ignore.
Add to these the importance of keeping a finger on the pulse of rising and fall of real
estate prices and tracking new statutory regulations governing the real estate scenario
and you are hardly left with any breathing space.
With all these core issues to reckon with you do not have much elbow room to focus
on non-core yet crucial activities such as bookkeeping. In any industry, this is always
a  repetitive,  mundane  and  tedious  task,  one  that  mainly  involves  processing
operational data and figures to generate reports based on which current state of affairs
can be evaluated.
As such bookkeeping will definitely not be a priority item for maintaining it yourself
at the cost of more important tasks. It is therefore always preferable to spin off this
component of your business to professional real estate bookkeeping services and
get on with the more central tasks at stake.
Bookkeeping Mistakes in Real Estate Business:
1. Poor maintenance of records
This is very common amongst real estate agents and investors not because you don’t
know  how  to  keep  proper  records  but  because  you  don’t  have  the  time  to  be
meticulous about it.
Back of the envelope, calculations can be quite uncomfortable for you at tax time
when the smallest receipt has to be shown for verification, especially if there is an
IRS audit. Producing accurate records maintained by real estate bookkeeping services
will give you peace of mind.
2. Wrong employee classification
You will  have  a  lot  of  people  working  for  you  when  you  are  in  the real  estate
industry. There will be employees working full time in administrative roles; there will
be market analysts working part-time helping you make better investing decisions.
Each segment has its own specific tax structure and not adhering to it will lead to
wrong calculations and paying excess taxes.
3. Not segregating bank accounts
Most  real  estate  agents  tend  to  have  one  bank  account  –  personal  and  business
clubbed together. So at the end of the year, during tax calculation when you have to
account for your real estate activities there will be a problem of gigantic proportions
untangling your business expenses from your personal expenses.
Have two separate accounts and entrust the responsibility of maintaining your trade
account to real estate bookkeeping.
All these points in one direction – instead of making these mistakes as an investor
and agent in the real estate industry, you’ll do well to entrust the responsibility to real
estate accounting experts.
Do you wish to avoid any of these real estate bookkeeping mistakes from affecting
your finances, reputation, or business growth? If yes, join hands with the accounting
experts of  MAC and free yourself against any bookkeeping headache. Contact us
now!