Lars Hedenborg walks through how to set up monthly financials for a real estate business. Hire a QuickBooks certified bookkeeper, build a chart of accounts, and use tracking tools like the REBS business tracker to stay on top of your numbers as markets shift.
Hey, Real Estate B School community. Lars Hedenborg here. I'm the founder of Real Estate B School, and in this week's message. And so we'd like to just, just keep the information flowing to help you in your business. I want to get into a really super exciting topic, and it's financial reporting. And just hang with me for a second because I know what you're thinking. I need more leads. I need something, you know, to improve my business, to increase my listings to all this stuff. But I promise you, this one tool from our toolbox could change everything for you, especially since we may be looking at a shift. If you guys haven't heard, in a lot of markets, things may be shifting. Before I get into it, though, I want to go through our mission. This is the Real Estate B School mission and how we help clients in the real Estate B School community alike is to build a highly profitable business. So to help you build a highly profitable business through the use of sustainable systems and empower people so that you can systematically increase your net worth and time away from the office. I've said that about a billion times, which is why I know it. It's in my heart. And the point is, I want time and money, freedom for you. And to do that, you've got to build these systems and have people run their systems. And that is everything we work toward in Real Estate B School. So a mentor of mine, Tony Robbins, I've spent a lot of time not with him personally, but in his coaching programs. And I've done everything you could do as far as give him money. Words to the wise. He says one reason so few of us achieve what we truly want is that we never direct our focus. We never concentrate our power. Most people dabble their way through life, never deciding to master anything in particular. And Real Estate B School and this program we put together is Real Estate Business Mastery. So make no mistake, this is business coaching for real estate agents. All right, this week, so 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. 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 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, you know, 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, monthly reports from your bookkeeper, right? So these are those reports. Seven months, we did 2 million, almost 2 million. This is a year 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.
