Over 2 million people in the United States work as real estate agents. Most real estate agents have a passion for helping home buyers find the properties of their dreams. As you start to help consumers buy and sell real estate, you need to make sure all the money you make from these transactions is properly documented. DIY accounting usually leads to a real estate agent getting in over their head with the Internal Revenue Service (IRS).
If you want to avoid these issues, hiring the right accountant is your best course of action. While hiring an accountant may seem like an easy task, it is actually quite complicated. If you are a real estate agent in need of professional accounting help, consider the tips below.
Choose a Technology-Driven Accounting Firm
Most real estate professionals use the power of technology in their daily lives. Creating and posting virtual tours of new properties, participating in Skype calls with clients, and using digital signature capture software is something most real estate professionals are familiar with. Choosing an accounting firm that is passionate about using the latest technology is vital when trying to keep your finances on track.
Ideally, you want to use an accountant that uses tools like Google Drive and Zoom to stay in constant communication. The use of these modern tools will make keeping the financial side of your real estate business on solid ground. Hiring an accounting firm that is using old and outdated methods to keep track of your financial records can result in a lot of problems in the future. This is why choosing an accounting firm that has a commitment to technology is a wise move.
It’s All About Previous Experience
There is an overwhelming number of accounting firms in the United States. Narrowing down the selection of accounting firms in your area will require some time and research. One of the main things you need to consider when trying to find an accounting firm is the level of previous experience they have. Selecting an accounting firm that caters to real estate agents and real estate investors is a must.
An accounting firm without this type of experience is bound to make mistakes. Even if you have to pay more to an accountant with a proven track record, it will be worth it considering the results they can produce.
Proper Planning Can Help You Avoid Tax Problems
Going in for consultations with accountants in your area is a great way to find out more about each one. During these meetings, be sure to ask about the tax planning services each of them offers. Using an accountant that can help you fix past tax issues and help you plan for future filings is imperative when trying to avoid problems with the IRS. With the help of a seasoned accountant, you can avoid raising red flags when filing your income taxes each year.
The Real Estate CPA is Here to Help!
Now that you know why hiring an experienced accountant is essential, it is time to take action. Contact The Real Estate CPA for more information on the services we have to offer.