Due to the new lease standards, there is a lot of chance of interpretations and space for judgement calls which can be open to human errors. This makes compliances harder than before, and lease audits can land you in many problems. You need to be well researched and well-read about the leasing accounting standards not to keep things open to interpretation. You can also use updated lease accounting software to help in the process, along with lease accountants.  

According to theForbes news report, more than 39% of companies use decentralized data systems to store and manage their lease data. This means that during compliance and accounting work, they need to gather information and data from multiple locations and stakeholders, which can be available in various forms like PDFs, Excel sheets, docs and even physical paperwork. Finetuning these, getting a hold of them on time and getting them organized into a centralized system at the year-end when deadlines are hanging over your head can be a crushing task for the team.  

Spreadsheets might be your accountant's best friend, but most companies still use spreadsheets to do all their lease accounting work. Survey saysthat companies have come to realise that they spend 25% more time on lease accounting due to their extensive use of spreadsheets. The new standards are so complex that a simple spreadsheet data collection can not be a long-term solution to this complication. You need to make a major shift to a new age lease accounting software and integrate it into your system to streamline the process and speed it up.  

All real estate business owners are aware that non-compliance can lead to penalties and fines, but these are the two most basic side effects. There is much more to think about, as non-compliance can lead to bad audit reports, additional audit fees, and investors and shareholders pulling out of your company due to a lack of credibility in business standards. The effects of these can grill you for a long time if you do not take a closer look at its implications. 

If you are a real estate owner, you are sure to have many leases that you need to look into; if you start the data collection and accounting process before the deadlines, then it is sure to become a nightmare. Not checking data for authenticity and not categorizing the leases can all be fatal; you need to start way ahead of time to avoid this.  

You will set yourself up for failure if you do not have a long-term plan for your compliance work. It is not a one-time thing; it recurs every year, so you need to have a basic structure for your lease accounting process. Get the right tools, software, and expert help in place before you start out on this journey to avoid losing sleep over compliance work.  

Even if property managers and accountants understand the need for the latest tools and lease accounting software, your strategy and leadership might not agree, and that can be a big cause of concern. You need to reason this out with them that almost 90% of spreadsheets have errors, and that can be a cause for serious non-compliance; you can also make them understand that a new age software will help you stay updated with standards in the long term.  

If you are facing any of the problems above mentioned then you are sure to go down the road of non-compliance and that is the worst nightmare of all. That will shake up your business, affect your financial health and cash flow and hamper your business image.  

Amidst the pandemic and the sudden growth of tech use in business, companies across the world are automating their back office work. From cutting costs to getting faster results, an automated system can have a lot of advantages. One of the biggest areas of interest is the automation of Accounts Payable (AP) to avoid loss of funds and monetary discrepancies from human errors.  

According to Business Insider, anautomated Accounts Payable process cuts costs by 81%.That is some big savings to push you towards automation.  

Maybe your business is actually ready to take the first step towards automating your Accounts Payable system. But there are multiple pitfalls in the process that you might not be prepared for. These might actually turn out to be really costly mistakes when it comes to the future of your company. 

What exactly are these pitfalls that can become grave mistakes? How do you know them and make plans to avoid them? Worried about the next steps? Read on to get a better grasp of the situation.  

Almost 53% of Account Payables believe that manual invoices are the biggest reason for data discrepancies and want to do away with it. Are you getting troubled with pilling up manual bills? You need an implementation consultant to get a better plan in place to tackle this. Vendors are of not much help in this because to date most of them send invoices on paper.  

You need to shift to a technical account management system to battle this problem. That might seem like a lot of extra costs for you to do it in-house and get an additional team for it. But it is within KriyaGo’s area of expertise and we are here to provide you with the right tools for your growth. 

A good real estate business relies on effective financial management. Along with generating profit, it is also essential to plan and utilize cost-effective strategies that facilitate business growth.  

Cost-cutting is the top priority of 59% of real estate companies that outsource their tasks. For a business that is restricted in terms of space and money, outsourcing can be the ideal way to afford additional staff. 

Irrespective of the size of your company, you can outsource your tasks. Service providers also offer various packages for different budgets. Depending on your needs, you can hire them on a per-project basis or monthly basis. They are also reliable if you need more staff to handle your work. The cost flexibility that comes with real estate outsourcing is something you cannot get with an internal team.  

Outsourcing can greatly improve the productivity of your business. Knowing which tasks can be outsourced can make this process easier. Hiring internal staff for non-core tasks such as accounting can be expensive. Outsourcing provides you with the required expertise without the additional costs of training a new employee.  

Based on business requirements, you can hire an outsourcing service on a monthly basis or also on a per-project basis. Some of the most outsourced property management tasks are: 

As a property manager, you are well aware of the complications involved in CAM reconciliations. By outsourcing CAM reconciliations, you let experts calculate and manage the annual CAM reports. They can also resolve any irregularities which help you maintain your company’s financial health.  

Every real estate business deals with long, complicated leases. Lease abstraction is the summary of your lease which highlights the most important clauses. Hiring an outsourcing service to manage your leases can help ease the legal documents for your tenants. Outsourcing partners can also provide other benefits like multilingual abstracts and lease audits.  

After understanding your business goals, you need to find an outsourcing partner that suits your requirements. While looking for a service provider, price isn’t the only factor you should consider. Finding a provider within your budget is important, but more than that, other factors to consider are: 

Look for service providers that specialize in or have previous experience in your industry. If your portfolio is residential real estate, then look for partners who deal with the same. Apart from this, you will also want your service provider to be a tech expert. Do they have the latest technology? Are their tools compatible with your business goals? These are some of the questions to ask before hiring a service provider. 

Today, more companies are outsourcing their accounting and bookkeeping services. And that’s because they find it more convenient and cost-effective.  

The problem with handling every task through internal teams is the fixed employee expenses. By outsourcing, you can convert this into a variable component. Sometimes, your business can see a dry run, while other times, the sales double up. You can scale your outsourcing accordingly and pay only for the tasks you got done. 

This frees up your budget for other revenue-generating tasks such as marketing. This is especially important for small businesses, who have limited cash flow. More than one-third of small businesses currently outsource at least one service. By doing so, they are focusing on generating more revenue and increasing efficiency. 

Backing up financial data to a cloud is an efficient choice for property managers. You should back up your data to: 

• Protect your data from human errors, malware, and hard disk damage. 

• Move data from one server to another 

• Avoid loss during major software or website updates 

Using the cloud also allows you to automate frequent data backups and remote restorations using any connectible device. Your data is also secure since it is encrypted. 

Property accounting requires occasional software updates. Different accounting software has different standards as well, which may not suit your needs. You don't want to look for workarounds every time. That increases workload and complicates time management. 

Employees need to devote time to familiarise themselves with existing systems and software updates. Training ensures that the workers make the best use of the features on offer. Learning the shortcuts will save time and data entry errors. 

KriyaGo has a team of experienced and professional accountants who can handle your accounting worries. We will help you free up resources and avoid making things more complicated. Let us help you manage your portfolio of properties and address your unique set of bookkeeping needs.