We're starting to scale our business beyond just a couple of SFHs and wanted to speak with/hire a new accountant that focuses on clients with real estate. Anybody have any recommendations?
@Michael Frankel There are plenty of great, knowledgeable CPAs here on BP and we're not too hard to find :)
Reach out to a few and see who could provide you the most value and evaluate what makes the most sense for you.
Good luck on your search!
If you don't mind working remotely with a CPA, reach out to a couple on here and speak with them. Ask some questions, and see whether they would be a good fit for you. As mentioned above, there are several of us on here who work remotely with clients.
Hi @Michael Frankel In addition to hiring a new accountant, this might be the time to engage a real-estate-savvy bookkeeper as well.
One of the important observations we made as we began to scale was that our accounting needs had grown into two separate functions. We discovered we needed:
- A CPA to file our state and Federal tax returns and keep us out of trouble/jail
- A bookkeeper to help us manage the day-to-day accounting and the monthly reporting and budgeting
Almost every business I know starts off by hiring out the CPA function but performing the bookkeeping function themselves. And that works fine in the beginning.
The problems come when you start getting more properties under management, or doing more flips, or closing more wholesale transactions. That's when the day-to-day accounting and transaction logging starts to become a job unto itself. That's when you need to hire a bookkeeper.
Because you didn't become a real estate investor to spend all day in QuickBooks entering transactions. (Plus, if you're like me, you probably suck at it!)
We already had a great CPA and as of last year we now have a great bookkeeping service that keeps our books clean and consistent, while providing the financial insights we need to attack opportunities better.
Thanks so much for the responses! Obvious follow up - anybody know any good CPA's who work remotely?
What part of NYC do you live in and where are you investing in? I recently moved to the Upper East Side and I invest in PA.
If you are investing out of state like many investors who live in NYC - you should definitely talk about travel expenses with your accountant. You will be surprised how much your travel costs can add up.