Many Real Estate Agents do their own bookkeeping, some will hire a bookkeeper... but what about virtual bookkeeping?
- How does "virtual bookkeeping" work?
- Why & when should an agent consider a "virtual bookkeeper"?
Here is a flowchart on the "HOW" question:
A few thoughts on "WHY" use a Virtual Bookkeeper:
1. You hate bookkeeping or are no good with numbers. Many real estate agents are "people" oriented and would rather keep the number crunching and paperwork to an absolute minimum. They just don't enjoy it, and as a result, it gets done late, or not at all and is a constant source of stress and strain in their workday.
2. You want to go "paperless". A big benefit of a virtual bookkeeping is that you end up with an organized digital archive of all your documents and receipts. Each time you get a piece of paper you will end either 1) taking a pic using your scanning app on your smartphone or, 2) Using your scanner to submit receipts to your virtual bookkeeper. As we know many receipts can fade and become unreadable. Plus with a digital archive, you have the ability to easily search and find any receipt from any device at any time.
3. You want to easily share your financial info with your CPA or tax accountant. When all your receipts exist in a shareable digital folder, it becomes incredibly easy to provide all documentation to your accountant. They can review your financials, advise on tax deductions during the year, plus they can complete your tax returns quickly and easily saving you money at tax time.
4. Outsourcing to a virtual bookkeeper can save you money. Virtual bookkeeping is efficient as it does not require locating in an expensive office building or in commercial centers or cities with high rents. These efficiencies can then be passed onto real estate agents in the form of lower monthly fees.
5. Going virtual allows you to hire a specialist for your industry. You are no longer restricted to choosing a bookkeeper based on geography. Hire a bookkeeper that understands your industry and the nature of the deductions and workflow. Specializing makes the entire process smoother and seamless for both client and bookkeeper.
For a virtual bookkeeping service that specializes in the real estate industry check out: MyVirtualBookkeeping.com
* for an easy to use, do-it-yourselfer bookkeeping solution designed for real estate agents.. check out: AgentLedgers.com