Managing finances in the commercial real estate (CRE) industry can be challenging, as it involves managing various properties, clients, vendors, and constantly changing regulations. For many companies, keeping everything balanced requires a specialized touch, but hiring full-time experts can be costly and time-consuming. That’s where staff augmentation comes in, offering flexible, expert accounting support without the burden of traditional hiring.
In this blog, we’ll break down the complexities of CRE accounting and explain how Relay Human Cloud can simplify it for your business.
Why Is Commercial Real Estate Accounting So Complex?
Commercial real estate accounting goes far beyond tracking income and expenses. It requires detailed knowledge of industry-specific financial practices, regulatory compliance, lease management, and forecasting. Here are a few reasons why it can get complicated:
- Multiple Revenue Streams: From rental income to management fees, revenue in CRE comes from various sources, each requiring different accounting treatment.
- Variable Expenses: Operating costs, maintenance, property taxes, and utilities can fluctuate dramatically across different properties and seasons.
- Lease Accounting Standards: Navigating complex lease agreements and complying with standards like ASC 842 requires specialized knowledge.
- Capital Expenditures: Large investments in property improvements or acquisitions need to be carefully recorded and depreciated over time.
Without experienced professionals handling these intricacies, even minor accounting errors can lead to compliance issues, financial losses, or missed opportunities.
The Challenges of Building an In-House Team
Hiring a full-time accounting team for your CRE business might seem like the obvious solution, but it comes with its set of challenges:
- High Costs: Salaries, benefits, and training for specialized roles can add up quickly.
- Time-Consuming Hiring Process: Finding the right talent can take months, slowing down operations.
- Retention Issues: The competitive job market means top talent often moves quickly, leading to high turnover rates.
For growing businesses, this creates a dilemma: how do you get the expertise you need without straining your budget or internal resources?
Simplifying CRE Accounting with Staff Augmentation
Staff augmentation through Relay Human Cloud offers a smarter, more flexible approach. Instead of hiring full-time employees, you gain access to a pool of experienced professionals who work as an extension of your team. Here’s how this model simplifies your commercial real estate accounting:
1. Access to Specialized Talent
Our team includes professionals trained in CRE accounting, lease administration, financial reporting, and compliance. You get the expertise you need without spending months on recruitment.
2. Scalability
As your portfolio grows, so can your accounting team. Staff augmentation allows you to scale up or down based on your current needs, ensuring you never pay for resources you don’t need.
3. Cost-Effective Solutions
With Relay Human Cloud, you reduce overhead costs associated with full-time hires. You only pay for the services you need, without worrying about benefits, office space, or long-term commitments.
4. Improved Efficiency
Our experts help streamline your financial processes, ensuring accuracy and reducing the time spent on manual tasks. This allows your in-house team to focus on strategic planning and growth.
5. Risk Mitigation
From staying compliant with changing regulations to reducing financial reporting errors, our team helps mitigate risks that could otherwise lead to penalties or lost revenue.
What Can Relay Human Cloud Help You Manage?
With Relay Human Cloud, your augmented accounting team can handle:
- Lease accounting and administration
- Budgeting and forecasting
- Cash flow management
- Financial reporting and compliance
- Accounts payable and receivable
- Tax preparation and planning
We ensure precise management of every financial detail, regardless of the size of your portfolio or the number of properties you oversee.
Real Results from Real Expertise
Our clients have seen significant benefits from using staff augmentation for their accounting needs:
- Reduced Costs: Clients report savings of up to 40% on accounting-related expenses.
- Faster Reporting: Improved financial reporting times by up to 50%.
- Risk Reduction: Minimized compliance errors, protecting clients from costly fines.
Final Thoughts: The Future of CRE Accounting
In an industry as dynamic as commercial real estate, having the right financial team behind you is crucial. Staff augmentation with Relay Human Cloud offers flexibility, expertise, and cost savings, allowing you to focus on growing your business without getting bogged down by financial complexities.
Contact Relay Human Cloud today if you’re ready to simplify your commercial real estate accounting. Let’s build a solution tailored to your unique needs.
