The Supporting Documents
The next bit of terminology you need to learn is the phrase “ supporting documents .” These supporting documents prove and support all of your financial transactions . Think of things like expenses , bank statements , tax returns , and insurance documentation .
The Books and The Supporting Documents
How do these two things work together ? When combined , your books and your supporting documents create your entire real estate accounting system . Your books are your way to track your transactions and finances and keep an eye on everything going on in your business . On the other hand , your supporting documents are proof of all of the transactions in your books . You need to keep all of these documents to prove the transaction in your books to the IRS . So why put effort into creating and
organizing your books ? Think of all the time it will take you to find the amount you spent on a transaction if the only place you keep it is in a folder amongst other folders in your office . Your time is valuable , and it can ’ t be spent digging through documents looking for one specific transaction . You need both your books and your supporting documents to be as successful as possible in your real estate career .
Now that you understand the terminology , it ’ s time to get started .
Summary
Now you know the terminology . You know who needs real estate accounting and why they need it . And you are backed with tons of tips and information to get started . Now all you need to do is decide what software you will use and commit to getting started . It may be difficult at first , but if you stick with it , you will have an organized real estate accounting system that you can rely on . Once again , if this is not something you feel comfortable undertaking , feel free to outsource to a professional . For more great tips for real estate investors , check out our articles on our website .
When combined , your books and your supporting documents create your entire real estate accounting system .
MEET JOE ARIAS
Joe Arias and his partners have flipped hundreds of properties in the Southern California region . He has developed cuttingedge systems to simplify and scale the entire remodel process that can easily be applied to flipping , rentals , wholesaling , and other passiveincome strategies . More recently , Joe founded a realestate investing education company called RealSuccess Investments , allowing him to share his tools and systems with hundreds of upandcoming investors .
RealSuccess is focused on education on flipping , rentals , passive income , and wholesaling .
Joe is also a bestselling author . He has written four books : Finding your RealSuccess , First Steps to Flipping , R stands for Rentals and Retirement , and Wholesaling Real Estate .
“ I came from Argentina when I was 20 , I am 40 years old now . I didn ’ t know anyone . If I can do it , anyone can .”
From a young Latino immigrant to a celebrated real estate investor , Joe is a true testament to hard work and discipline . As an investor , he has made it his mission to help others achieve financial freedom while enjoying living a life of passion , fulfillment , and empowerment .
www
. ourrealsuccess . com www . instagram . com / joeariasinvestor www . instagram . com / realsuccessinvestments
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