Demand for Bookkeeping co?

Question

I'm starting a real estate bookkeeping company with my wife who is a CPA and has been accountant for 10 years. We are going to charge more than outsourcing overseas but less than a typical US based co.

What demand is out there for bookkeeping? What about a one time deep clean?

If you have a bookkeeper, what tips or advice do you have about your experience with them?

Drew Sygit · Answer

Easier to do in multiple states as you don't have to worry about taxes, etc.

You only sell on price when you have nothing else to offer, so what are you going to offer to differentiate yourself from competition?

Ari Baumwald · Answer

@Drew Sygit

Just bookkeeping at this point.

Drew Sygit · Answer

Do you plan to offer bookkeeping or accounting?

How many states?

Ari Baumwald · Answer

@Simon W.

Thanks, that's super helpful advice!!

Sounds like that new client of yours is in some hot water, ouch!

Simon W. · Answer

That's depends.

Just because someone has a CPA doesn't mean they are good in the real estate world.

CPA and bookkeepers are not the same. Yes, CPA supersedes the work of an in-house accounting but having it recorded correctly is an operational process.

I just recently took on a client that had a bookkeeper (not real estate focused) that messed up the books tremendously. He hired a CPA firm (a member of BP) that FOCUSED on Real Estate that didn't catch the bookkeeper's mistakes. I literally saw my client's book for the first 10 minutes and see why he was being audited by the IRS.

Honestly, anyone can open up a bookkeeping service and it is nice to have a CPA to help back it up. Without enough real estate experience is what sets firms apart.

Ari Baumwald · Answer

@Basit Siddiqi

More difficult than regular books for accounting? Like I mentioned in the first post, my wife has been an accountant for a long time. You still think she will have those difficulties in the real estate bookkeeping space?

Thanks for the specific issues that you see with the books! That's very helpful :)

Ari Baumwald · Answer

@Markus Shobe

That's great to hear that there is a lot of demand for bookkeepers!

People are interested in the deep cleaning jobs primarily in order to prepare for tax season? Just like a one time spring cleaning on their house, where the rest of the year they let it get gross?

They miss deadlines? Like tax season deadlines? That's literally their most important job! Ouch

Ari Baumwald · Answer

@Chris Seveney

What do you mean by bad communication for a first date? Like you had set a time with your bookkeeper that you guys were supposed to speak or have a deadline, and they just went AWOL? If so, that's unexcusable.

Have you been outsourcing your bookkeeping? Or even the more expensive companies have been doing that?

Those are two very important pointers, thanks!

Basit Siddiqi · Answer

Bookkeeping for the real estate space is difficult.I often see a lot of issues with books that are presented to me.The three main issues that I see with books1) improperly recording the purchase / sale of real estate.(most people are unsure of how to record the items from the closing)2) improperly recording payments made to and from a property management company3) Improperly recording payments made to mortgage companies(not allocating it between interest, principal paydown, escrow)

Markus Shobe · Answer

There is a lot of demand for bookkeepers. Look for a lot of people looking for deep clean jobs as we move to tax season. The biggest complaint I hear about bookkeepers are that they miss deadlines and lack of communication.