Whether you’re an established real estate bookkeeper or just getting started in the field, hiring a New York City real estate bookkeeper can help you properly manage income and keep your expenses organized.
If you’re managing rental properties it’s important to follow specific guidelines in order to keep your business profitable and understand the health of your business. Here you can find helpful hints to stay organized and make sure you receive all the tax deductions you’re entitled to. Successful real estate investors need both bookkeepers an accountants in order to alleviate their workload and stay up to date.
The most simple way to organize your real estate bookkeeping finances is by dividing them into two separate categories income and expenses.
What Qualifies as Rental Property Income?
The majority of income for your rental will consist of the rent paid by tenants. Utilities are also qualify as if they’re not included in the rental agreement. When your rental agreement is paid each month by check or money order, it’s important to always make a photo before cashing them at your bank. To stay organized you can make a folder either physical or online, labeled rental income which will keep you organized and up to date. Each rental property should have it’s own folder in order to avoid confusion. If you’re tenants are paying each month in cash, it’s vital you write out a paper receipt and make a copy of it for yourself.
What Are My Rental Expenses?
As a rental property owner there will be many expenses which need to be recorded properly in order to receive the appropriate tax deductions. These expenses include property taxes, management fess, maintenance fees, utilities and landscaping if applicable. These are only a few of the many expenses you can write off as a real estate investor. Keeping track of your expenses is a great way to see where your money’s being spent and offers great insight on how to save expenses in the future.
How Can Real Estate Bookkeepers Help?
By hiring a real estate bookkeeper to manage your real estate properties you’ll no longer have to worry about tracking your expense and income. At MM Accounting and CFO Solutions we employ a full staff of specialized real estate bookkeepers who can help you properly manage properties. Our professional bookkeeping services include rent collection, tracking of expenses and custom reports that help you analyze the health of your business.
For more helpful tips check out our 6 Quick Tips for New Real Estate Investors.