Tell Me You're NOT Doing Your Books

work I know many talented, successful real estate investors. One of the most cringe-worthy things that I hear from some of them is that they struggle to find time to do their books.

*Sigh*

Hey Moguls, Cody Sperber here… as REIs, accounting and bookkeeping are probably not our biggest strengths.

Even if you were blessed with a mathematically inclined, detail-oriented mind (you lucky sucker), you won’t have time to spend hours pouring over the numbers as your business grows. You’ll have better things to do.

Not that the accounting part of your business is not crucial – that’s not what I’m saying! But your time will be best spent on generating leads, making offers, and sealing deals. Let someone else handle the bookwork, and your business can grow exponentially.

Now you may be using something like QuickBooks – and this is perfectly fine when you’re just starting out as a real estate investor.

But as your biz multiplies, this system just isn’t going to cut it. With your increasing responsibilities, it will be too easy to make minor mistakes that could cause major consequences for your business.

Here’s what you need to do, say and ask to find this important Power Team member…

Who You Gonna Call?

As much as you might be tempted to give your friend’s cousin’s son a part-time job (for the “experience”), this is not the time to cut corners and hire a newbie.

Your accountant needs to be effective, organized and able to handle a demanding workload at during certain times of the year.

Plus, they should be well-versed in tax deductions, exemptions, etc. Someone who understands real estate investment, can find deductions, fill out the correct tax forms and get you the best tax return possible is an employee worth finding and keeping!

And – let’s face it – your friend’s cousin’s son just doesn’t have a clue.

Tell Me About Yourself...

As you chat with a potential accountant, consider asking these questions:

Are you a real estate investor?
Do you work with other real estate investors?
From a tax perspective, is there any difference between quick-turning real estate vs. holding it for a while?
How should I treat depreciation?
What deductions can or should I take?
What does it mean to be considered a real estate dealer?
What do you charge for bookkeeping services?
Are you familiar with 1031 exchanges, or can you refer me to a good 1031 exchange company?
What strategy or strategies have you used to help an REI client save a bunch of money?

What, Where, When, and How

To find a stellar accountant, hit up your many REI connections, ask around at your local REIA club meetings or check out ads in your REIA club’s newsletter.

balanced Once you’ve found the “who,” make sure you discuss the “what, where, when and how” before hiring your new accountant.

Do you need only occasional guidance throughout the year, with tax assistance at the end of the year?

Or are you looking for someone to take the helm of your accounting year-round?

The size of your business will likely sway your decision.

Inquire about the accountant’s fees upfront – you don’t want to encounter any surprises along the way. Let them know exactly which services you’re looking for – and what the job will entail.

A Credible Collaborator

Don’t wait until managing your REI finances becomes too much for you to handle – hire a trusted accountant ASAP.

I’ve heard horror stories from investors that cost themselves hundreds or thousands by making simple, honest accounting or tax mistakes.

Don’t let this be you!

An experienced accountant is one of the best investments you can make in your business, trust me. You need one on your Power Team.

When you feel confident about your books, and know that tax season won’t be a major headache, the peace of mind is worth it.

So, what are you waiting for? Get started on your search for an awesome accountant now.

You Booked?

How did you find your bookkeeper or accountant? Share below and help your fellow investors.

Help You Help Me. Write down 3-5 responsibilities/tasks that would be best handled by an accountant. You can use this when discussing your needs with a potential candidate.

Search High & Low. Put together a game plan for finding an accountant. Making phone calls, attending meetings, getting referrals or browsing ads might be helpful.

Crunch the Numbers. Before your accountant starts, have a discussion about fees, so you’re both on the same page. Remember, this is an important investment in your REI business – don’t be scared to dish out the dough for a qualified person!