In-House or Outsourced Accountant – Which is Better?
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Real estate investing involves more than buying houses. You’ll have a lot of paperwork and bookkeeping to handle. If bookkeeping isn’t your thing, you should consider an accountant to help keep things organized and ensure your investments make financial sense.
But which is better, an in-house or outsourced accountant?
The Benefits of an In-House Accountant
- You are in control of all operations and how things are handled
- You set the timelines and deadlines and decide which assignments the accountant handles versus what you handle
- You have real-time access to all reports
The Downsides of an In-House Accountant
- You’re responsible for interviewing, vetting, hiring, and training the accountant to understand your company’s way of doing things
- You cover all of their income, plus potential benefits depending on your company size
- You’re responsible for both sides of their taxes (collecting employee taxes and paying employer taxes)
- You may not know if they’re doing things right if you don’t understand accounting
The Benefits of an Outsourced Accountant
- Outsourced accountants already have procedures in place to effectively handle your accounting needs; you don’t have to train them
- The right outsourced accountant has the proper education and experience to ensure they handle your accounting properly
- It usually costs much less to outsource an accountant versus hiring in-house
- Outsourced accountants know how to get you ready for tax season
- They may provide additional services, such as consulting
You can also search for an accountant specializing in real estate investments when you outsource your accounting needs. While most tax procedures are the same, there are many nuances with real estate investing that require extensive knowledge from a real estate investing accountant.
How to Tell if you Need a Real Estate Accountant
So how do you know if you need a real estate account? Here are some things to consider:
- Do you have to take time away from important investment decisions and opportunities because you have to handle your bookkeeping?
- Do you work full-time and invest on the side but don’t have time to fit in bookkeeping?
- Is your business growing much faster than anticipated, and you need help?
If you answered yes to any of these questions, it’s time to get accounting help, whether in-house or outsourced.
Outsourced accounting can be the solution to help your business grow and help you save time and money.
Hiring the right outsourced accountant can give you the best of both worlds. You know your accounting is done right, and you can focus on growing your business further.
If you’d like more information on outsourced accounting, contact us today. We’ll show you how we can help with your real estate investment business tax needs.