The days of using spreadsheets are over for real estate agents. For years, real estate agents have relied on spreadsheets to track expenses and revenue. However, the days of using spreadsheets are finished as there are a few good reasons why it is time to change how you do business.
A real estate agent expense tracking spreadsheet is not an efficient way to track expenses. A real estate agent will not be able to produce accurate numbers unless they use the software. There are many reasons why using software is the best way to manage a real estate agent’s accounting responsibilities.
First, a real estate agent expense tracking spreadsheet will require the real estate agent to spend more time and money on getting the information to the accountant than a spreadsheet will. The real estate agent must determine the total amount that is spent on advertising the property. Then they must come up with a schedule for the advertising. This will require both time and cash to see the ad campaign and get the marketing done.
If the real estate agent uses a spreadsheet, the cost of the marketing will be included in the listing of the property and it is usually not noticed when it is added to the property. This is a lot of effort that could be used to keep better records on the real estate transactions and make more accurate estimates of what is owed to the buyer. The real estate agent will not be able to stay professional if they cannot produce accurate figures.
Second, a real estate agent expense tracking spreadsheet will provide the commission percentage and expense figure that would be based on an agent or real estate company percentage. This will not allow the agent to accurately analyze what marketing they are doing to help generate the sales and, therefore, to pay the commission.
Third, a real estate agent expense tracking spreadsheet will require that the agent inputs all of the expenses into the computer. In this way, there is no room for human error or miscategorization of expenses. This will also require the agent to be sure that the expenses are accurate so that the customer knows how much they should expect to pay for the service.
Fourth, the customer has no idea of what is going on with the property until after the real estate agent expense tracking spreadsheet is produced. After the financial statements are prepared, it is easy to notice any small discrepancies between the numbers and the documents submitted by the agent.
Using a real estate agent expense tracking spreadsheet requires a lot of time and effort from the real estate agent. It takes two different people to create a spreadsheet and then they must analyze the data to determine whether or not the amount is accurate. If not, it can be difficult to produce accurate accounts and will lead to a lot of complaints from customers and potential customers.