As a small business owner, you may own real estate in addition to your business. Taking care of your real estate investments may require minimal effort, but attention should be paid to your bookkeeping. You may have even asked yourself “where is a good bookkeeper near me?” This is especially true when dealing with multiple rental properties while managing a growing business. Dealing with these details yourself can become a time-consuming process of research and error-checking.
Bookkeeping Best Practices
As you perform research in your area about a bookkeeper near me, pay attention to their best practices. Within a bookkeeping practice, there should be several procedures and processes that will allow for your rental properties to be properly accounted for when taxes are due. You want your bookkeeping to be done right the first time, so do your research and homework before onboarding with a new company. Be sure to ask about reconciliations, monthly bookkeeping, communication standards, and quality assurance.
Bank Reconciliation
Reconciliations are done to verify the accuracy of transactions with actual statements directly from the bank or financial institution associated with the rental property. This is an important process for your bookkeeper near me to maintain the integrity of your books from month to month. Missed transactions, even if just a few dollars off, can add up over the course of the year. Performing this regularly will protect your books from missing out on expenses related to your rental property.
Monthly Bookkeeping
Furthering your research with a bookkeeper near me you want to ask about monthly bookkeeping packages. Bookkeeping practices offer this service as a smooth and steady approach to maintaining your bookkeeping. Without diligent efforts from month to month, there are issues that can easily pile up. On the other hand, when your books are up to date, then financial reporting and tax statements are much easier to prepare.
Communication Standards
Hiring your bookkeeper near me is a commitment that requires mutual understanding. Communication standards can significantly boost your confidence with a new bookkeeper working with you. Establishing an agreement with your bookkeeper about response times can build your relationship and trust.
Expenses
Tracking expenses with your rental property requires a basic understanding of vendors and transaction categories. Make sure to distinguish between different vendors and transaction categories as you perform bookkeeping for your rental property. With the help of hiring your bookkeeper near me, you can have regular consultations to determine what needs to take place. Keeping your business transactions apart from your rental property will also be an important factor in determining your rental property and small business tax deductions.
Income
The income you receive from your rental property is required to be tracked within your taxes. If you decide to record it as a business income, ensure that separate income accounts are established. We recommend your research and reach out to whoever is your preferred bookkeeper near me and communicate any questions or doubts you may have. This will aid you in your bookkeeping expenses and year-end taxes as your accountant takes your books and records and organizes them into your small business and rental property taxes.
Wrap Up
Researching your new bookkeeper near me is a decision that will influence your rental property, small business, and financial well-being. Bookkeeping with your rental property, you want to make sure that you can keep your data with integrity and maintain quality control. Verify that your bookkeeper is on the same page with you to ensure best practices are implemented on your terms.