Not every real estate investor, especially those starting out, is aware of property accounting. However, getting real estate accounting right from preparing financial information to organizing transactions is crucial to every business.
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Today’s episode features Mark Kappelman, founder of Real Estate Accounting (REA). The CPA and CFA Charterholder explains why investors must consider outsourcing their accounting operations to finance professionals who understand the complexities of both real estate and accounting.
Key Points From This Episode:
- What is real estate accounting?
- How did he start his career in accounting?
- What motivated him to focus on real estate accounting?
- What are the specific accounting areas that he specializes in?
- What are the benefits of outsourcing accounting services versus hiring an in-house staff?
- Is there an advantage to having an in-house accountant and outsourcing accounting services at the same time?
“If we’re gonna start a bookkeeping company, we need to focus on real estate.”
“Let’s become the best property accountants possible. It’s a huge industry, and we love real estate.”
“I’ve actually operated real estate, so it becomes a lot easier for us to empathize with our clients.”
“We focus on three key areas: bank recs, AP, and the financial statement, closed process.”
“Most of our clients have more than 90% of their tenants paying online through the portal, and then the actual process of recording the accounts receivable and the tenant receipt, and the deposit in the bank are automated by the software.”
“We can be up and running and working on your account in days, not weeks.”
“If you’re working with us, we have almost always two if not three people, depending on the size of the client, working on it.”
“It’s highly unlikely unless we’ve got a company vacation or holiday that all people are going to be out. So the accounting kind of always keeps going.”
About Mark Kappelman
Mark Kappelman is the founder of the real estate accounting firm Real Estate Accounting (REA) which provides complete back-office solutions for third-party residential and commercial property managers, owner-operators, syndicators, and developers. Prior to this, he was an accounting professional at Ernst & Young and PricewaterhouseCoopers.
Mark earned a bachelor’s and a master’s degree in accountancy from the W.P. Carey School of Business at Arizona State University. He is also a CPA and a CFA Charterholder.
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