Good property accounting and financial management processes are key to sustainable growth, whether you’re a private landlord, estate agent or property investor.
However, many business owners find themselves at a crossroads when it comes to deciding whether it’s worth outsourcing to a property accountant or handling it in-house.
In this post, we’ll explore the pros and cons of outsourcing property accounting so you can make the decision that works best for you.
The benefits of outsourcing property accounting
A great advantage of outsourcing your accounting is that you can gain access to expert guidance. Property accountants understand the nuances of the real estate industry and the tax implications of running a property business, so they can offer expert insights into your finances.
They are also well-versed in the specific challenges and opportunities that property businesses face, from managing rental income to navigating stamp duty and capital gains tax.
Outsourced property accountants can provide valuable insights into your financial health. That can be through various mediums, including detailed financial reports, cashflow forecasts, and even wider business advice.
You can then take that insight to create bigger and better business plans that take your organisation forward in the way that you see fit.
Beyond helping you understand what makes your business tick, an outsourced accountant will be able to help you with the more mundane aspects of property accounting such as bookkeeping and accounts preparation.
Why does that matter? Quite simply, it lets you and your team focus your attention on perfecting your core business activities and growing profits.
Furthermore, as an expert in their field, an accountant will be able to get your accounting done quicker and more accurately than someone unaccustomed to finance.
Of course, an in-house finance team would be able to provide many of the services we’ve mentioned. However, it is almost always cheaper to outsource your accounting than to hire and train a new member of the team.
Furthermore, as your property business grows, so will its financial needs and reporting requirements. Would you rather go through the expensive processes of recruiting a full-time specialist or outsource these extra responsibilities to a fully-staffed accounting firm?
The cons of outsourcing property accounting
Some businesses prefer to manage property accounting in-house because they worry that outsourcing will cause them to lose control over their financial processes.
But while this concern is understandable, it’s often misplaced. A good accountant will always put your business first, no matter whether they’re at the desk beside you or supporting you remotely.
Confidentiality is another potential issue, as you may need to routinely share sensitive financial information. If you’re sharing this kind of data online, how can ensure it remains secure?
The good news is that the vast majority of outsourced accountants are aware of these risks and have implemented rigorous data protection systems as a result.
Finally, you may be concerned about communication problems with your outsourced accountant.
The easiest way to ensure your accountant will be communicative is to reach out to them. If they’re responsive and helpful from the outset, you’re less likely to face communication issues in the future.
What’s more thanks to cloud accounting software like Sage, you can easily collaborate with your accountant from anywhere, so they’ll feel like an extension of your team.
Interested in outsourced accounting?
If we’ve persuaded you of the benefits of outsourced property accounting, we can’t wait to hear from you.
As outsourced property accountants, we help property managers, estate agents and landlords stay in control of their business’s financial future. From tax return preparation and bookkeeping services to accounting support and business advice, we pride ourselves on offering the whole package for ambitious business owners.
So, if you want to learn more about our services, including property accounting, don’t hesitate to get in touch with us today.