Records, Book keeping and Accounting in Real estate

To succeed in any business, Real estate inclusive it is very essential you keep records.  Some weeks ago, while transiting to our permanent site I happened to stumble on some documents in relation to my real estate business from eight years back.  I was befuddled to say the least as I saw records from yesteryears come alive before my very eyes. The document I came across was a life saver. To think I had been trying to reconcile a transaction that was carried out 7-8 years ago and due to lapses in record keeping apparently as a result of the time elapsed, it had been rather difficult resolving the dilemma that ensued. Needless to say, I have learnt my lessons profoundly in relation to record keeping and know too well to want to neglect that aspect in my real estate business. Equally, the accounts department of any organisation should never be redundant as they are major players in the overall success of the organisation.

Therefore, I recommend that to succeed in real estate business you must have your records straightened out. Your Financial and customer service records must be up to date. Real estate business is a business that involves a lot of documentations to avoid fraudulent transactions and also for credibility because this sector of the economy has been characterized by a lot of fraudsters and shady deals that have seen unsuspecting victims fall prey to real estate scams.  In other words the quality of your documentation, tangibility of your title proves your real estate worth; acting contrary could elicit nightmares for your real estate business.

In addition, if you don’t keep adequate records either in terms of documentation from Legal to miscellaneous, figures and accounts then you are heading for crossroads in your real estate sojourn.

Simply put you will be running your business without information which would consequently ensure your business parleys with losses and eventually you will run the business aground. Lack of records in your real estate business means lack of information.

The above premise only invites trouble to your real estate business. If you are not able to provide evidence of documents that substantiate what you propose or what you claim to have then your business will repel traffic.

So, there is a need to invest in records, book keeping and accounts if you want people to take your real estate business seriously; Get a good accounting department and accounting software that will ensure your records are well kept and adequately up-dated, do your account periodically, review Management Performance Review (MPR) monthly, get information as to working capital on a daily basis depending on the business you do; I endeavour to get my working capital position on a daily basis. This helps in decision making and gives you a clear overview of your organisation’s work rate and performance.

To sum it up, a proper budget that is well drawn and matches your expectations for the year forms the bedrock of good book keeping and accounting records which helps you take well informed decisions and propels your business to the next level

In view of the aforementioned, it is then consequential not to handle your legal and accounting records with kid gloves, it’s the oil you need to keep that car in motion.

Debo Adejana
MD/CEO Realty Point Ltd