Top 5 Bookkeeping Tips for Real Estate Investors (by Anderson Advisors)
Bookkeeping. It’s not the first topic that comes to mind when you’re looking to invest in real estate; however, it is an essential part of managing and owning property. It may even be the most important part, as good bookkeeping can keep a company in the black. Keeping accurate books isn’t complicated, but it can be time consuming. The most important factor a good bookkeeping system can help you understand is your return on investment (ROI). Positive ROI factors, or gains, are monthly income, appreciation or gains, and tax write-offs. Negative ROI factors include maintenance bills, damages, mortgage payments, and taxes. Any real estate investment is going to have its share of both positive and negative ROI factors, and you should be as prepared as possible, should the unexpected occur.
Understanding these factors and tracking them diligently can help keep your real estate business profitable. An organized bookkeeping system should allow you to track net profits and losses, annual gain or loss, analyze business property value, determine successful business plans, prepare annual taxes quickly and easily, generate data, and more. Listed below are the top five bookkeeping tips for novice real estate investors.
Continue Reading Here