6. Not Backing Up Data
7 BOOKKEEPING MISTAKES THAT REAL ESTATE BUSINESS OWNERS MAKE AND HOW TO AVOID THEM LEON MCKENZIE
If you run a real estate business, then you are selfemployed. That means that you are responsible for setting aside enough money aside to pay your taxes and any other financial emergencies that crop up. We are talking about Social Security, Medicare, and retirement savings for the future.
Your poor cash flow on the other hand, could be attributed to poor accounting or the fact that you are overextending yourself financially. If you are spending most of your business revenues on expanding your business without keeping a financial emergency fund for the business, then between your regular business expenses and debts, you will have little money for emergencies – hence the poor cash flow.
So take stock of your finances, and leverage debt to help you expand that real estate business without compromising your ability to pay taxes or keep the business in operation.
Cash is still king. makes taking care of your real estate investments much easier. But what happens when your systems are hacked or your servers fail?
You will need to resort to your backups, of course.
So, the question is: do you back up data? How often do you do it?
What are you waiting for?
You need to back up your data digitally and manually. You can back up your real estate business data in the cloud or a second business server. You should also keep your paper records as a backup just in case your entire digital system fails completely.
You can set up your digital system to back up data automatically after a set period. That, in addition to keeping a paper record of your business transactions, will be helpful should your business
6. Not Backing Up Data
After all the effort you have gone into to digitize your business and learn how everything works, you are currently sitting tight and have no care in the world.
This is a dangerous mindset to have.
Digitization of business data