Real Estate Finance and Accounting it's IN to OUTsource
Real estate companies are shifting towards an outsourced model for their accounting functions in order to run their businesses more efficiently. Investors, owners, and operators need to focus most of their resources on managing and expanding their businesses by searching for new investment opportunities, structuring new deals, improving the profitability of current investments, and managing day-to-day operations. In order to allocate more time and resources towards achieving these goals and to receive consistent high-quality financial reporting, real estate companies are outsourcing accounting functions, or in certain cases, entire accounting departments. Additionally, as labor shortages continue to impact the industry, outsourcing can help mitigate staffing challenges.
The following functions can be outsourced and tailored to meet each company’s size and needs:
Outsourced Accounting Services:
- Process accounts payable
- Process tenant receivables
- Cash reconciliations
- Month-end close and financial reporting
- Financial statement consolidation
- Budget to actual reporting and variance analysis
- Construction/project accounting
Outsourced Special Projects:
- Budget and forecast analysis
- Development/project cost tracking and budget analysis
- 1031 exchange consulting and tax preparation
- Accounting system migration/implementation
- Financial reporting, dashboards, and KPI design and implementation
- Update or develop accounting processes, procedures, and internal controls
Outsourced teams integrate seamlessly with the company’s internal team to ensure efficient and accurate financial reporting and records. It typically takes several accounting periods to onboard the outsourcing team, but this process ensures the creation of an efficient stream of collaboration to drive value for the company.
Real estate companies may also look to outsource a specific role within their accounting department on a temporary or permanent basis such as the CFO, Controller, FP&A, or Senior Accountant role.
Outsourcing provides greater flexibility and access to more resources, minimizes overhead costs, and optimizes financial reporting. In turn, real estate professionals can more effectively focus their time on managing their business while having access to real-time financial information. This information enables professionals to make efficient and effective decisions in order to grow their business.
Citrin Cooperman’s Business Process Outsourcing Practice professionals are ready to support your real estate business with our suite of outsourcing services. To get started, please reach out to Jessica Garber at firstname.lastname@example.org.
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