There’s no way around it: real estate investing can be tricky. As a business owner, you have to navigate property laws, various mortgages, rental agreements, utility costs, and plenty more. Saying that your finances are complicated would be an understatement. And yet, you’re left to organize them on your own, maximizing your profits and adhering to ever-changing tax legislature with little help other than, potentially, some intuitive software. While bookkeeping and tax software can be helpful, if you’re flying solo in these challenging accounting circumstances, you’re likely leaving a lot of profit on the table.
But it doesn’t have to be this way.
Whether you own a couple of small properties in rural New England or several in New York City, your business can benefit from professional accounting services. The seasoned real estate accountants at Cg Tax, Audit & Advisory can simplify even the most complex financial situations and set you up for sustained success. Here’s how.
Organize Your Finances, Track Your Transactions, and Develop Detailed Reports
You might have a full portfolio of properties. Or you might have one. Either way, income and costs can be complex. There’s a lot to track, and we haven’t even touched state-to-state tax differences yet.
With so much money coming and going through various channels (especially if you own multiple properties), it can be easy to lose track if you don’t know what to look for. Fortunately, the real estate accountants at Cg do. They’ll analyze every dollar that changes hands and deliver meticulously-crafted reports and analyses, so you can eliminate unnecessary expenses, find areas of opportunity, and have a better understanding of your properties.
Have rentals in five states? How about a few urban retail centers? Do you own several stores in a small town, all bearing your last name? Do you basically own the town? No situation is too complex for the accounting and tax professionals at Cg.
Minimize Your Debt
If you’re in the real estate field, you know that debt is just part of the game. Sometimes it’s necessary to take on debt and pay mortgages, but this doesn’t mean that you should accept any loan that crosses your path. As you know (better than most) mortgage rates are constantly changing, and accurate projections about upcoming rates are essential to making solid investments. You want to make sure that your future business opportunities aren’t inhibited because you’re stuck paying high interest rates on your properties.
A real estate accountant will help you find the most effective structure for your loans, one that fits your long-term business goals. If you really want to purchase two more rental properties in five years, a Cg accountant will have the expertise in financing and refinancing structures to help you get there. Sure, you can read up about financing and loan options online, analyze them at home, and make your own informed decisions, but a professional with years of experience and extensive market knowledge can come up with a much more nuanced and creative solution, saving you time in the process.
Make Taxes Quick and Painless
When April rolls around each year, you’re not just worrying about income taxes; you have property taxes too, and they’re a whole different beast. On top of that, every state has different business tax requirements, so if you own property in multiple states, your taxes are complicated with a capital C. They may seem messy and in serious need of untangling.
A Cg tax expert is no stranger to the real estate tax game. They know all the little tips and tricks, everything you can write off, all the ways you can save money. Plus, they’ll make sure your business stays compliant with tax laws that change from year to year, so you won’t get hit with hefty fines and penalties.
Real estate owners and investors have access to a lot of tax benefits, and you might not be aware of them. But Cg accountants know the ropes, and they can leverage these advantages for your benefit. You’d be surprised at how much you can save.
Use Industry Trends to Propel Your Business
There are a lot of ups and downs in the real estate industry. Reading these trends takes skill and experience. It’s like medical test results – if you read them right, it leads to health and happiness, but reading them wrong can have devastating results. Make a bad prediction and you might end up with unprofitable properties, bad loans, or wasted investments. Cg accountants have the experience and insight to effectively analyze real estate trends and use that analysis to identify potential opportunities and pitfalls.
Put You on a Path to Success
After doing everything listed above, your real estate accountant will have painted a picture of your financial circumstances. Maybe it’s elegant, the Mona Lisa – or maybe it’s scattered, chaotic, a Jackson Polluck. Either way, this will be more than enough information for a Cg professional to develop a comprehensive and customized game plan to help you take your business to the next level. You’ll be able to move forward confidently, making investments, selling assets, restructuring loans, and finding new properties.
You might think that real estate accounting services are too expensive, and that’s a fair concern. But know this: the amount of money you’ll save and the assurance you’ll feel are worth the cost many times over. In a business that revolves around investments, a Cg Accounting Consultant is the best investment you can make. Contact us today to see how we can help!