An Overview of Some of the Tips on Real Estate Bookkeeping in India
Conducting real estate bookkeeping in India allows companies to track their income and expenses to determine general financial performance. Organizations seeking to save on their overhead costs always outsource the services to experienced service providers. 3E Accounting India is a business solution provider that offers a wide range of accounting services including real estate bookkeeping. When outsourcing our services, you’ll experience a fast and efficient service like no other.
Real estate bookkeeping employs simple accounting tips that ensure tasks are up-to-date and provides periodic financial reviews. However, businesses can use specific recommendations for efficient real estate bookkeeping to boost growth.
Let’s look at some of the tips for effective real estate bookkeeping in India.
Timely Update of Accounting Books
Bookkeeping is never simple, and it must ascertain frequent updates of all books to reduce error and offer visibility. More often, small businesses tend to ignore or overlooks bookkeeping because of the tedious nature of the task. When it comes to that, you can always take the services of organizations that provide accounting and bookkeeping and concentrate on other things. Having accurate and up-to-date financial records minimizes the likelihood and burden of an audit. Again, it will improve your ability to receive financing and enhance your invoicing cycles.
Perfect Record Keeping
The real estate industry is moving fast and involves copious amounts of money and powerful decision-making powers. And therefore, it is crucial to maintain a perfect record of all transactions. Whether it is an in-house or outsourcing the service, real estate bookkeeping in India must have a new record book to ensure transactions run smoothly. There are different approaches that businesses can do their bookkeeping. This can be either using spreadsheets, QuickBooks, or more complex options such as FreshBooks and Buildium. Each of the approaches will depend on which method best fit your business. The key reason for maintaining a perfect record is to help you analyze your growth path and processes.
Categorize Costs Correctly
On most occasions, the real estate industry incurs several costs that go out in all different directions. And for that reason, it’s crucial to maintain an orderly record of all such expenses. One way of ensuring neat recording is by categorizing the costs correctly. Hard costs, which are generally directly related to the product, can be in one category. As they generally make up 70% of the entire project costs, they fall under tangible entities and are good estimators, and easy to arrive at with minimal error margin. The remaining 30% of the costs need careful evaluation and classification to avoid any future error.
Real estate bookkeeping in India is on the front foot when it comes to embracing technology. Leveraging on technology is with no doubt essential when it comes to real estate bookkeeping. The use of bookkeeping software such as Zoho Expense, Expensify, or Abacus is significant. This will assist in monitoring data, keeping a close track of records, and storing eons of data in a manner that’s easily accessible. You could employ Evernote apps that will help you create an efficient online filing system and avoid traditional physical cabinet filing.
Every business in the real estate industry requires a full bookkeeping service, whether in-house or from an outsourcing service provider. Real estate bookkeeping in India is an essential component that many firms are outsourcing services. If you cannot track your sales, profits, and all records of transactions made, then it means nothing, no matter how good are your sales. As an entrepreneur in real estate, you can always seek 3E Accounting India’s services and enjoy bookkeeping services from experienced professionals. You can always contact our lines or visit us whenever you need help with bookkeeping services.