Commercial real estate professionals face many adverse situations during their normal routines. Lack of coffee is one of the most common. Lack of time is another. But there are more sinister adversaries lurking about that CRE professionals may not even know exist. They’re called “money vampires” and these parasites are out to get you and bleed you dry.
Unnecessary fees, failure to adhere to accounting standards and improper tax filings are just a few examples of how CRE professionals may be bleeding money through avoidable “money vampires.” Fortunately, commercial real estate software can give you the “weapons” you need to properly eliminate them. Here’s how:
Money Vampire #1: Unnecessary Fees
Commercial real estate software is a powerful weapon in your arsenal, as it helps you avoid making mistakes. Human error is a natural part of manual data entry, so there’s always a chance you could miss a lease deadline, misquote a fee or mix up lease terms. All of these can cost you, literally, and we haven’t even mentioned the breach of contract claims you could face for each of them. Commercial real estate software can act as your “Bible” to ward off this money vampire by giving you a point of reference and centralized location for all of your data. Thanks to a simple user interface, integrated data points and accurate, automated processes, unnecessary fees will be a thing of the past.
Money Vampire #2: Failure to Adhere to Accounting Standards
Want to face a malpractice suit from the Financial Account Standards Board (FASB)? Of course you don’t. But that’s what you might experience if you fail to adhere to Generally Accepted Accounting Principles (GAAP) or Generally Accepted Auditing Standards (GAAS). The new FASB standards are taking effect later this year and if you don’t reflect them in your accounting practices, it’s going to hurt. Not just from suits — those are less common — but from unrealized revenue potential via customer contracts.
Fortunately, commercial real estate software can help you with the new FASB regulations by helping you with lease renewals, financial insights, critical communications, date monitoring, document management, in-depth reporting and more. Just like garlic, crucifixes, holy water or rosaries can combat vampires, these software tools can help you battle common accounting standards mistakes.
Money Vampire #3: Improper Tax Filings
You won’t just be in trouble with the FASB if you fail to adhere to accounting standards, however. If you make these same mistakes when it comes time to file your taxes, you’ll potentially have an issue with the IRS as well. The weapon you can use against this money vampire — perhaps the most formidable vampire of them all — is a mirror. Specifically, commercial real estate software can “mirror” your accounting standards and seamlessly transition things like maintenance costs, repair costs, depreciation and personal exemptions into your tax filings.
Want to eliminate the money vampires in your CRE life? Commercial real estate software like Quarem can make it happen. To learn more, request a demo today.