Tax Accounting vs Bookkeeping for Real Estate Agents

The terms “bookkeeping” and “accounting” are often used interchangeably, but when it comes to maintaining your real estate business, they’re very different things. It’s important to know the difference so you can hire the experts that will help you succeed and stay out of trouble with the IRS.

You need to have a bookkeeper who has their own unique role and a tax accountant who files your taxes and plays a very different role.

Bookkeeping role:

  • Tracking the day-to-day what’s going out and coming in

  • Generating monthly financial statements and reports

  • Keeping a close eye on debit and credit card charges

  • Creating a system for invoicing clients and collecting payment

  • Double-checking the accuracy of bank statements and records

  • Maintaining good payroll procedures (if applicable)

Tax Accounting Role:

  • Files your income taxes

  • Maintaining compliance with business regulations and legal requirements

  • Making necessary preparations for tax time

If you need to outsource your bookkeeping to industry-specific experts, get a free estimate today!

Real EstateLindsey Sryockbookkeeping, accounting, tax accountant, real estate bookkeepingComment