Set up monthly financials for your real estate business in four steps: hire a QuickBooks-certified bookkeeper, build a chart of accounts, submit documents on time, and close the prior month's books by the 10th. Timely reporting keeps you ready when markets shift.
Questions this video answers
By the 10th of the following month.
Craigslist—search for 'QuickBooks certified bookkeeper' in your area.
realestatebschool.com
We're in the key driver of finance. And for those of you that haven't been on the website, it's realestatebschool.com realestatebschool.com you can see our six key drivers. And finance is the fifth key driver. And it's financial reporting. You must know your numbers. So here is the toolbox and here's where we are. Level one tool in the key driver number five, finance. And there's five or four steps here. It's first of all, hire a QuickBooks certified bookkeeper. Go on Craigslist, type in QuickBooks certified bookkeeper in your area and interview three and pick one. That's it. You've got to do it. You've got to commit to it. Second thing is to create a chart of accounts. In real Estate B school, we have a very specific system that we use for financial reporting, but you have to create a chart of accounts. Work with your bookkeeper to do that. The goal is to close your books for the prior month by the 10th of the following month. So as I record this, I'm in September, September 30th, right? By the 5th, that's the month end. By the 5th of October, all of my information is to my bookkeeper. Our credit card, we don't have any credit cards, but our bank statements are in our payroll reports. All that stuff is to the bookkeeper. And by the 10th, we have the reports we need to analyze that month and year to year comparisons and all that good stuff. The fourth step is to input those numbers into something that makes it look useful. So in real estate B school, if you haven't heard of it, it's the Rebs business tracker. It is the most powerful real estate business tracking tool that I've ever seen. I've worked on three iterations of this tool and just an amazing tool. Let me show you real quickly what I'm talking about in terms of the toolbox. So this is a search for Charlotte, right? I know this isn't rocket science, but you got to search for a bookkeeper, then you've got to give them a chart of accounts. This is proprietary to real estate B school, so I can't give you this, but create a chart of accounts. You've got to get monthly reports from your bookkeeper, right? So these are those reports. Seven months, we did 2 million, almost 2 million. This is a year to date comparison. And the only caveat here is that we had an agent that wasn't on my team that's sort of mucking up these numbers. So we're actually not we're actually about 20% ahead of where we were last year. And then business tracker, expense input sheet on the business tracker to get those numbers into something that looks meaningful. And then there's just a simple guide that I put together. And these are some of the toolbox tools that we use in real estate B school. So that's about all I got. This question for you is what's your key takeaway? What are you going to do? What action step are you going to take here to change your business that will ultimately change your life? Right. Going into a shifting market, you cannot afford to not track your business, so you've got to track your business. So that's the takeaway. Until next time, real estate, beach school, community. Be well. We'll talk to you guys soon. Bye. Bye.
