Are your reporting and accounting systems ready?

In this video, Real Estate Industry Growth Leader Thomas Barker sits down with Accounting Advisory Director Nick Annan to discuss how companies can prepare their accounting and reporting functions to support growth and raise capital.

Click here to watch the video.

For those who prefer to read along, here’s a streamlined version of the discussion:

What changes in accounting systems and reporting are non-negotiable for growth?

A couple of shifts firms need to be aware of as they move through the capital cycle include:

• Accounting Method: Many entrepreneurial or early-stage firms operate on a cash or modified cash basis. That’s fine as you’re getting started. However, as complexity grows, you have to transition to accrual or GAAP (Generally Accepted Accounting Principles)—not just for audits, but to understand performance.
• System Selection: QuickBooks is common in many early-stage companies, but it’s not built for managing multiple entities, intercompany activity, or complex waterfalls. Consider platforms like Yardi or Buildium. It’s important to note that most QuickBooks desktop versions are being sunset and no longer supported. Any software conversion benefits from a third-party advisor. Vendors speak “tech”, not “accounting,” so having someone translate your needs will make the transition as seamless and painless as possible.

How can multiple systems integrate effectively?

If your accounting process feels overly manual or painful, you might be right. Modern systems offer efficiencies—bank feeds, automated transaction imports, and third-party integrations for accounts payable (AP).

Example: AP software combines document storage, approval workflow, and payment processing. During audits, you can grant your auditor access to that system to save time.

Is a team approach valuable when managing multiple properties or raising capital?

Absolutely. Anytime you can get someone outside your business to act as an unbiased third party, they bring best practices from across the industry.

What does an air-tight month-end close look like?

• Documented Workflows: Calendars, task owners, and checklists to replace implicit knowledge.
• Defined Goals and Cut-Offs: Be audit-ready and able to analyze performance accurately.
• Segregation of Duties: For example, one person enters bills, while another approves payments. This mitigates risks such as misappropriation of funds.
• Reconciliation: Not just your bank account and credit cards, also reconcile accruals, fixed assets, and all major accounts monthly.

Why anticipate investor reporting requirements early?

Start with the end in mind. Professional, transparent reporting establishes credibility with all your investors regardless of their level of sophistication.

Investors and lenders expect more than financial statements. What are they looking for and how can real estate firms prepare?

• Clarity and Consistency: Key Performance Indicators (KPIs) like occupancy rates and Internal Rates of Return (IRRs) show trends over time.
• Investor Portals: Platforms like Juniper Square and AppFolio provide easy, secure access to documents.
• Alignment: Reports must match agreements.
• Narrative: Short commentary on financials explains risks, variances, and next steps.

How should firms restructure accounting and finance teams as they scale?

Growth forces organizations to reevaluate roles. In the early stages, one bookkeeper may wear ten hats. As operations expand, adding a controller becomes necessary, followed by a CFO. Outsourcing is useful at nearly every step of the way, whether filling gaps, managing risk through segregation of duties, or handling projects like GAAP conversion, audits, and software migrations.

Can outsourced support be delivered remotely?

Today, virtual interaction with software makes geography irrelevant. The best resource for your needs may be outside your area, as technology and the Internet level the playing field.

Not sure whether to outsource or hire full-time?

Our team is relationship-focused and scalable, meeting customers where they are. We first diagnose the pain point. From there, we advise on the best solution, which may be leveraging our team, connecting you with a trusted resource, or helping you in-source by drafting a job description. Ultimately, our goal is to deliver the best outcome possible that works for you.

What advice would you offer to a real estate firm early in the readiness process?

• Start with the end in mind. Reliable financial reporting drives compliance and decision-making.
• Build investor confidence. Timely, transparent, accurate reporting builds strong relationships with your investor base.
• Design for scalability. Implement systems and controls that grow with you. Reset as needed, but plan for flexibility from the start.

Ready to professionalize your accounting and finance function for growth? Contact us today to start the conversation.

The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.

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