The American housing marketing has been booming. Listings are selling just days after going up on the market. Since the supply of houses is at an all-time low, there’s also plenty of demand for new construction.
In short, it’s a great time to be in real estate! Fast closings, higher prices, and more also mean more paperwork. With tax season right around the corner, you might be thinking about hiring an accountant.
Whenever you add someone to your team, you want to make sure you’re getting the right person. How can you know you’ve found the right accountant for your agency? You can use this guide to help your decision-making process.
Look for Someone With Real Estate Experience
Whenever you hire someone to your team, you probably prefer someone with a little bit of experience.
The same is true when it comes to hiring an accountant for your real estate business. More than that, though, think about hiring someone with experience in this industry.
Why do you need someone who already has experience in real estate? The industry is well-known for being tricky to navigate. Consider that some firms face huge swings in either direction on an annual basis.
Last year offers a case in point. Housing prices have boomed, thanks to a shortage. That will spur more real estate construction projects.
In turn, the supply of houses will increase, which could cause sales to slow down or prices to drop.
Other aspects of property development, like leasing and rentals, can also see dramatic changes year over year. Right now, spaces like retail and offices are having a hard time finding and keeping tenants. That situation could change fast, even within the next year.
Someone who has experience in the industry knows how volatile it can be. They also have experience budgeting under these conditions.
Their skills and expertise are something you want on your side.
Hiring an Accountant With Local Expertise
When people work with a real estate agent, they usually want to work with someone who knows the lay of the land. An agent who is familiar with the area knows all about it, including where schools are located or if the price is actually a good deal.
Local real estate agents know all about their communities. They might be able to tell you all about the attractions of an area. Maybe they have insights into how the neighborhood is changing or how often you find properties for sale in a particular area.
This familiarity is important for running an agency or property management company effectively. Much like you want an agent to have local experience, you want your accountant to be familiar with your local area too.
The experts at Templetonco.com say local expertise gives accountants insight into fluctuations. They’re more likely to make accurate predictions about whether the market will go up or down.
They’re also more aware of the area’s needs. In turn, they can help you plan and budget in a more effective way. Their insight could help you weather the storm in a rocky year or make a good year even better.
Think About Their Experience With Taxes
Having a local team on side is also important for legal reasons. Different states and even different regions or cities will have different rules. There may be legislation around financing that you need to pay attention to.
There might also be laws that govern how you conduct sales or keep records. Last but not least, there are also tax concerns.
Tax codes can change, especially between states. You may even find local differences as well. If you work with a local accountant who has experience in real estate, they’re likely to be familiar with all the ins and outs of the tax framework.
That’s a huge advantage for your firm. They can help you plan more effectively for your taxes, as well as avoid any penalties. They can even help you find tax breaks or special funding that could help you move a project forward.
If you work with someone outside the area, they’re less likely to have extensive knowledge of these nuances. That could mean you lose out on tax breaks or that you get tripped up in red tape.
Ask About Their Credentials
When searching for your next accountant, you’ll likely encounter many acronyms. What is a “CPA” and does it matter if someone has this credential?
In most cases, it does. The different designations mean someone has taken courses and passed a rigorous test to receive it. Some common designations:
You may also find people who have advanced degrees, like MBAs or graduate degrees in finance, business, or accounting.
As noted, these credentials let you know someone has the skills you’re looking for. If you want to sell your business, then you may need a valuation. Working with a CVA could give you a better idea of exactly what to ask for.
If you work with someone without this designation, you may not get an accurate valuation. That could cause problems when you go to sell the business.
Someone with the right credentials can help you get exactly what your business needs.
Find the Right Team for Your Business
Hiring an accountant is no small task for any organization. It can be even trickier for those who are in the real estate industry.
If you want to hire the right person, then make sure you look for a combination of experience, local expertise, and the right credentials. Following these tips makes it more likely you’ll find the right person on the first try.
Looking for more great advice about business and entrepreneurship? You’re in luck! Our archives are chock-full of the best business tips, so you can keep your firm growing the right way.
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