Why You Should Work with a Real Estate Tax Accountant

Why You Should Work with a Real Estate Tax Accountant in Houston, Texas

Real estate accounting is not what any CPA can handle. Whoever you hire to handle it must be experienced in real estate matters. Are you currently searching for a real estate tax accountant in Houston to help you handle your taxes?

In this article, I will explain how to find an experienced property tax accountant near you.

Before we jump into the subject, we will first know who a real estate tax accountant is and how they can help you navigate your personal and business taxes.

Who is a Real Estate Tax Accountant?

A real estate tax accountant, also known as property tax accountant, is an accounting professional who submits financial strategies, manages your budget and financial records, offers tax advice, and, above all, prepares your tax returns. Furthermore, they analyze property investment opportunities, help claim tax deductions, and evaluate investor’s assets.

Property tax accountants in Houston can advise you on your real estate dealings, such as buying, selling, leasing, and managing real estate. They also have strong computer and writing skills, as they will prepare financial statements and journal entries for their clients.

What Does A Real Estate Tax Accountant Do?

A real estate tax accountant handles all accounting and tax processes for a real estate company. These processes include tax preparation, accounts payable and receivable, account reconciliation, recording journal entries, and data entry into tax preparation software to ensure accurate and orderly financial reporting.

Furthermore, they collect bills, manage outgoing and incoming payments, prepare financial statements, and other tasks. A company can hire a full-time real estate tax accountant or outsource the function to property tax accounting firms in Houston, TX.

The following are some duties of a real estate tax accountant:

  • Manage accounts receivable and accounts payable for real estate companies.
  • Reviewing financial records for the purpose of balancing business accounts for the tax season.
  • Facilitating the purchase and selling of real estate
  • Property management
  • Filing tax returns.
  • Representing clients before IRS

Why Do Real Estate Owners In Houston Need A Real Estate Tax Accountant?

If you’re a realtor, you probably already use tax software that simplifies your taxes. However, there is a limit to what you can do with a computer. Now you need a property tax accountant. The following are the reasons why you need a real estate tax CPA:

1. To Save Money

Realtors typically only communicate with their tax accountants during the tax season and virtually disappear for the rest of the year. Sadly, this tactic is outdated and ineffective today.

With a real estate tax accountant on your side all year round, you will formulate new tactics and take advantage of legal loopholes to reduce your income taxes.

Did you know that you can subtract passive losses from your business income if you spend a fixed amount of time maintaining your properties every month? Only a property tax expert would be aware of such information. Contact one today.

2. To ensure that you are up-to-date with the latest tax laws

The US tax code is modified almost every year. It’s possible that you aren’t always up-to-date on changes to the laws. You need a property tax accountant because they are up-to-date with the tax laws.

If you’re close to your CPA, you will foresee any changes and prepare yourself to reduce any losses or possibly take advantage of these changes.

3. Effectively optimize business payments

Real estate accountants are experts at setting up your payments to reduce risks while advancing the transaction. For instance, if you own a rental company, a CPA can advise you on the most effective strategy to increase your revenue.

A seasoned real estate accountant will always prioritize your interests at all times. They will help you schedule payments more efficiently, obtain funding, and manage your financial records to protect your revenues from risks.

4. They can help you to reduce risks and increase growth

Even when we employ tools and software to manage our financial records, small details might still be missed. However, if you have a property tax CPA managing your books, rest assured that your records are accurate. As a result, you will claim all your tax deductions and increase cash flow.

Furthermore, they will offer you advice on how to use your current investments as leverage to secure finance for your new real estate without taking on too much debt or jeopardizing your financial independence.

5. They serve as your personal matchmaker with potential investors

Generally, real estate accountants in Texas are well informed about available bargains and can connect you with rich investors who will be willing to finance the property purchase when necessary. Since they know the best deals on the market, they will inform you whenever properties that suit you are available.

How To Choose A Good Real Estate Tax Accountant

To find a real estate tax accountant in Houston, search for a “real estate tax accountant near me” on Google, and it will show you different results to choose from. Before choosing a property tax CPA for your business, consider the following factors:

  • Availability
  • Years of experience working with real estate companies
  • Testimonials from previous clients
  • Interest in the real estate industry
  • Knowledge of  the accounting and bookkeeping software you use

Conclusion: Why You Should Work with a Real Estate Tax Accountant in Houston

A real estate CPA is a tax accountant that specializes in real estate. They focus on the taxes related to properties. As a realtor in Houston, TX, handling your taxes is not what you can do all by yourself. Hence, you need to hire a real estate tax accountants near me to enable you to focus on other aspects of your business.

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