The Vital Role of Bookkeeping in the Real Estate Sector
Estate surveyors and valuers have received a strong recommendation to make bookkeeping a top priority within the real estate business, in their quest to maximize profits.
This guidance came during a webinar titled “Importance of Record Keeping in Real Estate Business,” hosted by the real estate firm Ubosi-Eleh & Co in Lagos. Mrs. Mojisola Ogunkoya, the Co-administration Manager of the firm, stressed that many companies either underestimate the significance of effective recordkeeping or perceive it as a matter of convenience rather than an absolute necessity.
Ogunkoya elucidated that the importance of record-keeping extends far beyond client meetings and transaction closures. It resides in the meticulous adherence to processes and the maintenance of a well-structured framework.
“In the realm of real estate, proper bookkeeping offers businesses critical insights into their financial health, aiding them in making informed decisions. Detailed records also reveal opportunities for cost savings and profit maximization. This encompasses tracking and organizing financial transactions related to properties, investments, and day-to-day operations. Unfortunately, in the fast-paced world of real estate, where transactions and client interactions take center stage, the documentation of business often takes a backseat,” she stated.
Nevertheless, Ogunkoya underscored the pivotal role of recordkeeping in streamlining operations and ensuring accessibility to client documents. She remarked, “If it isn’t documented, it essentially doesn’t exist. Relying solely on memory is perilous, as information stored in one’s mind is susceptible to loss. In the real estate industry, such practices can be risky. The law demands evidence, especially when dealing with property management. When entrusted with the management of an apartment, documenting the apartment’s current condition, maintaining comprehensive tenant records, and diligently recording financial transactions becomes paramount. This comprehensive documentation acts as a valuable safeguard against potential disputes between landlords and property managers in the future.”
She further encouraged the adoption of cloud storage solutions to protect client records. In a world where data holds immense value, these digital platforms provide accessibility, security, and resilience. They ensure that critical real estate information remains intact and readily accessible, safeguarding both the business and its clients.
Sources: GuardianNg
