Dealing in real-estate comes with an encumbrance of accounting. When a company is dealing with this day in and day out, they don’t want to be hampered by little inefficiencies that are detrimental to the entire system. Such a detriment could come in the name of absent scalability and infrastructure.
A real estate player wants to be dealing with the informative and consequential data of accounting that leads to sagacious decision making. But the more quotidian bits – like processing daily data, reconciliations, drawing up monthly financial statements, reports etc. – are the chores that ought not to task their time. These labors take up precious time and can very well be handled quickly and efficiently by someone else.
One of the featured advantages of outsourcing such work is that the company being outsourced to is equipped to deal with all aspects of accounting, while boasting great infrastructure and an ability to scale manpower. Such companies invest in these commodities because their entire business runs on it.
Let’s first look at infrastructure (the term infrastructure here being loosely all-inclusive). An accounting services company has all kinds of clients from varying registers of businesses. Since they do accounts either in toto or in part for each of those clients, their set-up includes various software, hardware, systems and structures necessary to cater to different requirements. This means they don’t need to establish a team and support framework from scratch. Consequently, when clients outsource their accounting to them, the expenses involved in carrying it out are considerably lowered, as opposed to them maintaining an entire accounting department themselves.
With the ebb and flow expected of every business, as far as manpower is considered, scaling up or down is not a trivial scrape one gets into infrequently. Some periods in the year require grueling accounting and some phases may see a lull. How many real estate companies are equipped to regulate their manpower at short notice? More so, how much effort, time and resources are they willing to pour into training, re-training or replacing resigned staff, with the arresting of progress being risked?
Accounting services companies, however, are not limited by this hydra. They have skilled staff on hand and can shift and re-allocate accountants as the need requires. Their growth and progress is neither being gambled nor compromised, as tends to be the case with the real estate firms. The superior quality of work leads directly to best practices being implemented, appropriate work being automated, accurate reports delivered, and, thereby, better over-all decision making regarding the company finances. Not just does the company gain in terms of quality work and the benefits of up-to date technology, they also save recognizable amounts of money that would be absurd to ignore!
So that is how a real estate company can scale success by outsourcing to accounting firms who have the means to scale skill.