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