Real Estate Bookkeeping: Hourly, Monthly, and Quarterly Plans that Adjust to Your Business
- Allison O'Dell
- Mar 17
- 4 min read
In the competitive landscape of real estate, keeping financial records clear and organized is vital for success. Whether you are a new real estate agent, experienced real estate broker, or a property investor, effective bookkeeping is essential. In this blog post, we will explore various bookkeeping plans tailored to real estate professionals, focusing on hourly, monthly, and quarterly options. Each plan can significantly influence your business's financial health.
Understanding Bookkeeping for Real Estate
Bookkeeping for real estate means systematically documenting and managing all financial transactions related to your properties, clients, and leases. This includes tracking rental income, monitoring expenses, and producing financial statements. A solid bookkeeping strategy can help you save time, spot growth opportunities, and ensure compliance with tax regulations.
Your bookkeeping needs will depend on the size and scope of your operations. For example, a real estate investor with multiple properties requires a different approach than a new realtor just starting. Choosing the correct bookkeeping plan is crucial to your success. Let’s take a closer look at the pros and cons of hourly, monthly, and quarterly arrangements.
Hourly Inclusive Service Agreement
The Hourly Inclusive Service Agreement is praised for its flexibility. It offers an initial free consultation to help you determine if it's the right match for your needs. The plan starts with a base monthly fee of $140, covering up to four hours of service. Any additional hours are billed at just $35 each.
This option is especially beneficial for real estate agents who experience fluctuating transaction volumes. For instance, if one month you close five deals and the next only two, this plan allows you to pay only for the time you use. In Washington D.C., where the average real estate agent closes 11 deals per year, this flexibility can save you money.
However, bear in mind that scheduling appointments requires direct communication with us as this is a plan typically used by high demand clients. This might not appeal to clients who prefer self-service options.
Monthly Basic Bookkeeping
The Monthly Basic Bookkeeping service caters to clients handling fewer than ten transactions each month. It's perfect for new agents or independent contractors who feel overwhelmed by financial details. This plan includes QuickBooks Online setup, financial reviews, and reconciliations, kicking off with a $100 new client fee.
For someone new to the industry, ongoing monthly support can be invaluable. The regular financial assessments help you grasp your finances without the stress of managing everything alone. In fact, studies show that businesses that keep regular track of their finances see a 30% improvement in cash flow.
One consideration is the initial client fee and the recurring expenses for QuickBooks Online. Being transparent about these costs can encourage potential clients to sign up. Currently, QuickBooks Online Ledger is only $10 per month and is perfect for the real estate agent with simple transactions or the property investor that breaks each property into its own LLC.
Quarterly Plus Service Agreement
If your business is growing but you do not yet need extensive monthly reporting, the Quarterly Plus Service Agreement is a great fit. This plan supports up to 20 transactions per month, provides free financial statements, and offers a complimentary 30-minute consultation each quarter. Like the other plans, there is a $100 new client fee.
Real estate agents who have begun to expand their businesses will find this plan highly beneficial. Clients appreciate the focus on proactive financial management, enabling them to plan for the future. Included quarterly consultations can strengthen the working relationship with your service provider, offering additional insights into your financial health.
Factors to Consider When Choosing a Plan
When deciding among hourly, monthly, or quarterly bookkeeping plans, it's important to assess your unique needs and transaction volume. Here are key factors to keep in mind:
Transaction Frequency: How often do you close deals? Many transactions may require more frequent bookkeeping support.
Financial Complexity: Are your finances straightforward or more complicated with multiple properties? Complex situations may need regular attention.
Budget Constraints: Review your financial situation to determine how much you can allocate towards bookkeeping services without straining your resources.
Carefully evaluating these criteria will guide you in selecting a bookkeeping plan that aligns with your business goals and helps you grow.
Occasional Bookkeeping
If you're not ready for a plan yet see the benefit of having a bookkeeper go through your finances to help you organize them before sending them off to your accountant, consider the Clean-Up Service for $50/hour. There's no on-going plan agreement or new client fee. Yes, the hourly rate is higher but that is offset by the up-front savings. Also, a QuickBooks Online subscription is not a requirement, as it is for the Hourly Inclusive, Monthly Basic, and Quarterly Plus plans.
Additional Services for Plan Participants
Note that all of these are included in the Hourly Inclusive Plan.
30-Minute Consultation: $25 (Quarterly Plan gets one free per quarter; Initial Consultation is FREE for everyone)
Estimated Quarterly Tax Calculations: $30
Financial Statements: $20
Closing of the Books: $70
Making the Right Choice for Your Future
Effective bookkeeping is crucial for real estate professionals, whether you opt for hourly, monthly, or quarterly service agreements. Each plan caters to different needs, providing options for flexibility, simplicity, and extensive support.
Improving your bookkeeping practices is more than just tracking income and expenses; it's about paving the way for sustained growth and success. Being clear about your pricing structure and exploring digital solutions can enhance your overall experience.
As the real estate market shifts and evolves, exceptional financial management will give you a competitive edge. By matching your bookkeeping services with your specific business needs, you set the stage for thriving in this dynamic field.