As a real estate accountant, the most common questions that real estate investors ask me are “Should I incorporate?” and “What can I deduct?”
But what other questions should they be asking? Here are just a few that come to mind…
How frequently should I be talking to my accountant?
This really depends on your situation. Sometimes once a year is fine. But, if you’re in a growth phase, it may need to be three or four times a year. Complex business situations may require a talk every few weeks. A real estate accountant is a key part of your real estate team, so you have to know when to bring them in on key discussions for your business.
What’s my 20 year plan?
I believe real estate investing is about taking the long view, so you should be asking questions of your real estate accountant the reflect this philosophy. The answers your accountant will give depend on whether you’re talking about one year, 5 years, 10 years, or 20 years into the future.
Are my investments structured properly from a tax perspective for today and for the future?
This question should cover all your investments, not just real estate investments.
How can I organize record-keeping to make things easier for me and still provide you the information you need?
Having a system in place for bookkeeping is critical. You can’t manage what you can’t measure, and you can’t get tax deductions on it either.
These are just a few of the many questions you can discuss with your real estate accountant. It should really be about a dialog and a relationship, not a transaction.
