Friday, 15 December 2017

Challenges Faced in Real Estate Bookkeeping and Accounting



No matter whether you are a property management company, owner of a real estate agency, real estate agent, REIT or an investor group, accounting for real estate industry poses tedious challenges. Real estate bookkeeping and accounting takes a valuable time  and efforts that owner can spend in growing business.

real estate accounting


Some of the challenges faced in real estate accounting are: 

1. Understanding the accounting rules in real estate industry

It's a biggest challenge for real estate owners to keep them up-to-date with changing rules and regulations dealing with expenses, valuations, ownership, taxes, and more, As the regulations change yearly, so it’s important for owners to hire real estate accounting firm who are familiar with all these and can stay on top of these changes and reduce your burden as well as expenses. 

2. Issues in Payroll Processing

Payroll Process should be precise because most of the real estate agents or brokers or property managers are on commission basis. For an agency, its little bit confusing in payroll every month as the staff paychecks fluctuate weekly. Real estate accounting firms have robust system or software of calculating such commissions that reduce chances of errors.

By partnering with your accountant, they may be able to take over the payroll for your business, ensuring accuracy and timeliness.

3. Complicated management of a remote work force and their accounts

In real estate industry, one cannot run his/her business while sitting in the office. The owner or agents or brokers all are in the field. In such situation its difficult for an owner to track the agents as well as maintaining accounts. 

Most real estate agents will be out of the office for much of the day. Cloud-based property management software can help keep all of your agents connected, so you'll have real-time information on transactions. The better solution is to outsource real estate accounting services that ensures accuracy and timeliness.

4. Common bookkeeping and accounting mistakes

The most common accounting mistakes done by the real estate clients are:  in-separation of personal and business accounts, false classification of costs, inaccurate classification of employees, improper record keeping.


By partnering with an accounting company or outsource real estate accounting services, you can focus on core business and generate higher revenue. Call at +1 646-688-2821 or email to info@cogneesol.com for a detailed discussion.

Thursday, 7 December 2017

4 Fundamental Ways to Have a Growth-oriented Back Office

When we talk about “back office”, it usually implies the process of setting up a workplace wherein the marketing, sales along with other customer-related divisions are placed in the front of the workplace whilst the everyday operations team would be placed at the back.


Essentially, the back office processes include finance and accounting, insurance supportlegal support, human resources and IT. Nevertheless, based on the size of the company and its niche, a few of these tasks would be handled by a full-fledged in-house team and the remaining would be assigned to a reliable back-office service provider.
A growing trend amongst a lot of businesses nowadays is to outsource back-office services so that they can pay attention to the core aspects of their business. By opting for outsourcing a few or entire back office tasks to a professional offshore company, it makes it easier for businesses to concentrate on expanding, maintaining and revamping their business, whenever required.
It is undoubtedly a great idea to outsource accounting back-office tasks for a more effective and streamlined workflow. By defining your key areas of managing the back office, assigning separate roles and responsibilities, and consolidating your accounting platform; you will certainly have the ideal back office in place.
To achieve the desired business results, it is essential for you to take into consideration the below-mentioned key areas of managing back office:

Accounting and Bookkeeping

Since money is the fuel that helps to keep your business heading off, high-quality bookkeeping processes are absolutely essential to continue your business to be on the right track. Your bookkeeping entails documenting each and every business relevant financial activity. These back-office bookkeeping tasks consist of:
  •       Accounts payable
  •       Accounts receivable
  •       Bank account and credit card reconciliation
  •       Payroll processing
  •       Tax preparation etc.
Evaluating exactly how, when and by whom are the tasks going to be completed can assist you in consolidating your back office, having more effective workflows or maybe more timely execution of tasks. This assessment is also helpful in determining any kind of left out or underperformed tasks, along with whether or not there exists a division of duties for better performance and fraud protection.

Accounting processes consist of:
  •       Handling accounts
  •       Reconciling invoices
  •       Monthly and annual closing
  •       Making sure that financial records are correct & insightful
Accounting is the building block when it comes to data as well as numbers. The company’s accounts need to be properly managed and reconciled on a regular basis.
Accounting is the process of executing all accounting principles of an establishment, be it GAAP, revenue assessment or perhaps the matching principle.

Controllership

In a number of smaller businesses, the CEO may additionally be working as the bookkeeper, or perhaps the controller, maybe even both. It is essential for organizational development that bookkeeping, as well as controllership, are kept as distinct procedures. The controller evaluates each and every action in the bookkeeping division while always keeping a watch on chances of fraud occurrence. Having an additional pair of eyes on the accounts is beneficial in determining cash flow issues and keeping a watch on the likelihood of in-house and extraneous fraudulent behavior or human miscalculations.
Considering the fact that a great number of businesses nowadays have limited resources and even though the responsibility of a controller needs to be kept separate from the bookkeeper’s responsibility, they usually get intermingled into one. The below-mentioned are a few job roles that a controlled must carry out:

Controller tasks comprise of:
  •       Monthly closeouts
  •       Reconciling balance sheets
  •       Financial auditing
  •       Accruals
  •       Financial reporting
  •       1099s
  •       Budgeting
Handling accounting, bookkeeping and then taking care of controller responsibilities can be too much for businesses. Therefore, it is better to outsource accounting and bookkeeping tasks to a reliable service provider. A benefit associated with outsourced accounting services is the fact that it offers an instant distinction of accounting tasks that gives a peace of mind to the stressed-out business owner. Looking for an accounting outsourcing company? Your search ends at Cogneesol! Call at +1 646-688-2821 or email to info@cogneesol.com for a detailed discussion.

Monday, 6 November 2017

Integrate Accounting with your Retail Business to Achieve Better Outcomes

retail shop accounting

Running a retail business is puzzling, as there are many things you need to organize in an efficient manner. In the retail sector, customer service is the key to triumph and when you treat your customers right, they come back and also refer others. But along with this increasing retail business demand,  necessity of a systematic accounting process also increases; that includes inventory, financial statements, payroll, and tax payments. With the constant change in the technology, the retail business is integrating its accounting process to improve business efficiency. Accounting integration is one such tool that connects retailer’s accounting/ ERP system with its e-commerce platform, CRM application or EDI trading partners and online marketplace.
Today’s retail business owners are using accounting integration solution to streamline their process with accuracy, speed and in a smarter way.

But that’s not enough…!

Go through these factors that accounting integration solutions, has brought in the retail business workflow:

Quicker- After adapting accounting integration solutions, retail business owners no longer have to bother about order backlog or crucial order processing. Instead, they are assured that orders will move to and from their ERP/ accounting in actual time, which means that orders can be packaged, processed and shipped out to consumers quickly. So, retailers who were pressurized during peak days like Black Friday and Cyber Monday, accounting integration ensures that no matter how much is the volume of transactions, orders will be processed quickly and efficiently.

Simpler- With the help of accounting integration, the business of selling has become easy. There’s no need to worry about orders getting lost or misplaced, as the software ensures that every order is processed, fastly and accurately. A fully bi-directional accounting integration solution makes sure that your business is running smoothly. It also excludes the need of a manual data entry person, as humans are prone to mistakes. And what if your data entry person is sick or on a holiday?

Smarter- Retail business owners who are using accounting integration knows that it’s a “clever” way to put their accounting process in the hands of integration solution providers that have years of experience. The providers make use of accounting integration and efficiently manage any number of order document volumes. These keen business owners know that they can add or remove connectors as their business changes or grows using a common integration platform that can virtually connect any accounting/ ERP system with the other business systems they are running.


Gather everything at one place- The way your buyers purchase products keep on changing. Regardless of whether they stepped into your store, or surfed to an online shop, their demands remain high. Disappoint them, and they’ll never come back. Delight them, and they’ll tell their friends. If you don’t know how to integrate accounting in your retail business, then the best way is to outsource your retail accounting process to a reliable firm. Their expert team will set up the software for you at an affordable price, so that it becomes easy to track your orders.

Friday, 29 September 2017

Tuesday, 29 August 2017

Capitalizing Account Receivable Management

Accounts receivable refers to the payments that are not yet cleared by the clients or it is also used to give a long term credit to customers/clients. It helps in gaining customer loyalty and allowing them to take product/services on credit basis that helps in boosting sales. Here account receivable management plays a crucial role, as this is the responsibility of management to track the history of customer and recover payments on time. Watch this video about benefits and importance of account receivable management.

Monday, 21 August 2017

Bank Account Reconciliation: Myths that Pulling you Down

Bank account reconciliation is a very needy task for your business when your periodic reports are not up to the mark or facing discrepancies. Outsourcing your bank account reconciliation is the best option but the only hurdle that doesn’t allow you to outsource is communication and data security which is the main concern for any business. But nowadays, outsourcing bank account reconciliation is much better than in-house employee without worrying about data security you can outsource your reconciliation task and save your time and cost with 24 hour support services that too with accurate results.