In a real estate business, there are a variety of costs which must be properly classified to ensure the maintenance of proper financial records. Typically, this factor is ignored. The most common errors we have experienced while doing accounting and bookkeeping for our Real estate client. Incorrect classification or expense/income. This can really put problems on your books, especially if you are reconciling the account for the year and filing your taxes.​ Another typical issue is the separation of business and personal related transactions. Some business owners make the mistake of keeping the same accounts for personal and business purpose. This makes an evaluation of profits and expenses difficult.​​​ A very common issue we've come across is lack of proper record keeping. It's imperative to keep business related documents for an specific time period, but some documents you should keep forever. Click here to check what documents you need to hang on to.​ Lastly, when you set up your chart of accounts, in your industry there are expenses that are necessary to be categorized properly. If your chart of accounts isn't set up properly, this can cause financial problems throughout the years.​ We know the ends and outs of real estate accounting and how to make sure your company is set for success.