Bookkeeping for Real Estate

Real estate involves complex transactions and reporting requirements.

Whether you’re a residential builder, a commercial land developer, a property manager, or a real estate investor, our team of real estate bookkeeping professionals provides a customized approach to each client with the goal of improving profitability, optimizing cash flow, and improving operational efficiency--everything your business needs to stay ahead of the competition.

Bookkeeping and Tax Services for your Real Estate Business

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Real estate tax law is complicated, but our knowledge of current real estate tax law enables us to work with you in developing innovative tax planning strategies that minimize your tax liability.

Bookkeepers who know your real estate business

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Calculating Debt and Equity

Understanding debt and equity can help you make strategic financing decisions, manage risk, and understand the true value of your real estate business.

Too much debt can pose a risk to an agent’s business, but when used strategically, it can also provide opportunities to grow and expand.

Chart of Accounts Setup

Setting up a chart of accounts for a real estate business involves listing all the categories under which a business receives income or incurs expenses, and where the business owns assets or owes liabilities.

The chart of accounts allows you to track income, expenses, assets, and liabilities in a structured way. It’s also essential for preparing financial statements and tax returns.

Income & Expense Tracking

Income for real estate professionals primarily comes from commissions on property sales and leases, rental income, consulting fees, or income from property flipping.

Expenses can encompass a wide range of items, including marketing costs, travel expenses, office overhead, professional fees (like licensing or membership dues), and cost of sales (like staging or home repairs).

Calculating Depreciation

In the context of real estate, depreciation is the decrease in the value of a property over time due to wear and tear, age, or other factors. For accounting and tax purposes, this decrease in value can be deducted from income, potentially saving significant amounts on taxes.

Depreciation is a complex area of real estate accounting, as it involves understanding different depreciation methods and lifespans, it only applies to certain types of properties. However, with a basic understanding of the concept and help from a real estate-savvy CPA, depreciation can be a powerful tool for a real estate agent.

Planning for Taxes

Real estate professionals face unique tax situations. Between deductions, capital gains taxes, self-employment taxes, and more, there’s a lot to navigate. Misunderstanding or overlooking these issues can result in overpaying taxes or running into legal trouble with the IRS.

Moreover, understanding the tax implications of various real estate deals – such as flips, rentals, and wholesale deals – can help real estate professionals identify the most tax-efficient strategies for their business.

Financial Reporting

Evaluating your business's success relies on diligent financial reporting. Our real estate bookkeepers create comprehensive financial reports offering a holistic view of your financial well-being.

SnapBooks will generate income statements, profit and loss statements (P&Ls), and balance sheets. These reports not only provide valuable insights into your financial performance but also serve as instruments for data-driven decision-making.

Christopher Schiavone, City Square Associates

Having Chanelle and SnapBooks on our team has been game-changing. I'm spending more of my time leading the business, and less of it trying to troubleshoot a QuickBooks glitch or hunt down a missing expense. And, for the first time in 25 years, I feel like I can always get an accurate picture of our financial situation in real-time. The SnapBooks folks are just a pleasure to work with. They’re responsive, empathetic, and personable.
Jonathan Walsh, Verdant Counseling

“SnapBooks is responsive to inquiries, efficient, and reliable. After hiring them for a Quickbooks 'cleanup,' I chose to continue with ongoing monthly support. My quarterly and annual reports are always ready to go at tax time. If you are looking for a very reasonably priced partner to help you organize your business, I highly recommend you give SnapBooks a call!”
Madelyn Yucht, Summit Executive Advisory Group

“Can’t say enough good things about the Snapbooks team! They are knowledgeable, helpful, and responsive. I put off getting Bookkeeper Support for the last few years and my books were a mess. They were patient, were able to sort through everything, give me advice, and get me on the right track. I can’t tell you how much better it feels knowing that Snapbooks is taking care of my books.”
Judith Mendel, Mendel & Associates

“Our law firm has had a great experience working with SnapBooks. From onboarding to the flow of monthly bookkeeping and payroll processing, this team has been great to work with. Jessica's attention to detail is unmatched, which is critical in a law practice. I feel confident that our business books are in great hands. “

Custom bookkeeping for your real estate business.

While bookkeeping in all industries involves recording income, managing business expenses, and keeping a trace of assets and liabilities, there are certain transactions in bookkeeping specific to real estate.

Some of these transactions include invoicing tenants for rent, receiving payment for rent, charging late fees for unpaid or late rent payments, posting tenant security deposits, managing Homeowners’ Association fees, and tracking accrued depreciation on real estate property. Working with SnapBooks means working with bookkeepers who know real estate and can give you the financial support you need.

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