As a realtor, you’ve done a lot of work to get where you are. Now you’re taking on new clients, expanding your reach and growing your business. You already know that real estate transactions are complex, often with a lot of moving parts, so you’re doing your best to get the process organized so you can meet every challenge efficiently and confidently
One of the most difficult and least understood aspects of your real estate business is finances, especially come tax time, and keeping things in order can quickly become a large, confusing task that requires a professional to handle correctly.
Do you need to hire an CPA to be a successful real estate agent?
Unless you’re well-versed and capable of handling everything yourself, then yes, hire a CPA who specializes in realty as soon as possible. A CPA is a chartered professional accountant that has achieved the highest qualification in the field and can make a huge difference in the financial health of any business, especially when it comes to real estate.
A CPA that specializes in real estate accounting is someone you need on your team if you’re going to be a successful agent. From preparing tax returns and financial statements that save you money, to creating business plans and performing audits (if required), they’ll help you stay organized, so you can focus on real estate.
Five reasons you should have a CPA real estate tax professional on your team
Keep your financial records in order
Every business needs to keep up-to-date records to determine its financial health. Documents such as your balance sheet, profit and loss statement, and retained earnings statement can give an accurate snapshot of your business at any time. This snapshot is an important decision-making tool and helps with the tax aspects of your business.
Prepare and file your taxes accurately
Taxes – the yearly occurrence that no one enjoys (except your CPA of course). They are unavoidable and are often very complex or difficult to get right. Your CPA will know exactly how to file for your business and what deductions you are eligible for. You’ll save money year after year and avoid paying penalties for late or incorrect filing. Recently the Ontario government has allowed for the creation of a personal real estate corporation (PREC) which may have financial and tax benefits for realtors. A CPA will be able to help you navigate the new rules and determine whether it makes sense to incorporate.
Accurately determine what deductions you can make
Real estate professionals have numerous options to lower your tax liability. This could include things like vehicle and office expenses, client care expenses, professional fees, educational material costs, business travel expenses, advertising costs and more. Your CPA will know what you can legally claim so you’ll save as much money on your taxes as possible.
Help keep your business financially healthy
CPAs are experts at developing business plans so that you can operate your business the right way. A CPA can help answer questions like “should I incorporate?” and can assist in your agent/broker relationship. You’ll also be able to make decisions based on financial data instead of a gut feeling, giving you the confidence to keep your business growing. Reliable financial advice, analysis and critical thinking are CPA specialties, so why not leverage these to your advantage.
Real estate accountants can grow your professional network
There’s a lot of different fields that come together in a real estate transaction and as an agent you’ll need to connect with all of them. Professionals such as mortgage specialists, real estate lawyers, insurance agents, notaries and home inspectors can help make your business run more efficiently. Aside from the knowledge a CPA has about business structure and tax laws, they may also have connections to other industry professionals. Your CPA will not only help you determine what assistance you might need in developing sound financial strategies to take your business to the next level, they can bring their own professional relationships to the table.
Does Keasy include real estate CPA’s in their team?
At Keasy, we know that our individual agents are only as good as the team behind them. It’s a core principle that drives us to help ensure our clients and partners can achieve their real estate goals. While the Keasy team focuses first and foremost on pairing clients (home buyers and home sellers) with the right real estate agent for their particular transaction, that’s not where our tasks end. We do a lot of behind the scenes work to ensure our agent pool features the best, most capable agents in the province, and that they can count on us to provide support along the way. That means leveraging our team of partners who specialize in areas such as real estate law, real estate tax, real estate lending and more hands-on things like home staging and moving. Keasy has a large network of real estate agency professionals that assist our agents and clients in successfully completing transactions and changing lives.
If our clients or our agents need a professional by their side, we make sure they have one. We’re only as successful as our team allows us to be which is why we strive to offer a full-service realty experience for our clients and partners alike.