The rent keeper book5/12/2023 ![]() ![]() ![]() Steer clear of IRS tax penalties or back taxes because you can’t defend deductions you claimed.Avoid extra time and stress digging up information for an IRS audit.Save money on tax preparation because your CPA doesn’t bill you for time spent correctly organizing your information.Analyze which rental properties performed best.Know whether novel business strategies succeeded.Manage your cash so that you don’t run out.Compare your growth (or lack of growth) from year to year.Track key performance measurements like cash flow, profit and loss, and net worth.An organized, timely, and easy-to-use real estate accounting system serves many practical purposes. Related: Why You Definitely Need a Real Estate Accountant Why organized books are essentialīookkeeping is not the game of real estate itself. Just make sure to begin bookkeeping early before your business gets too big. You don’t need to be a professional accountant to keep accurate records. When you know exactly how your business is doing at any given time, you are able to make better decisions and sleep soundly at night. Bookkeeping is a vital task for your real estate business, and there are several benefits to staying organized, such as freedom, legality, and profitability. The goal of real estate accounting-or “doing the books”-is an accurate record of all the money going in and out of your business. ![]()
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