Outsourcing or DIY—What’s Best for You?

By Andy Mulholland

He has a background in leading a top real estate team for over a decade and an understanding of the critical role of clear financials, Andy, along with his wife Ellyn, a seasoned real estate CFO, co-founded Simple-Numbers.

Are you struggling to decide whether to outsource your real estate bookkeeping or if you just want to do it yourself? If you’re dedicated to scaling and growing your business, you need to consider all your options to streamline your daily operations.

I know it’s amazing how Realtors can make time for everything – managing bookings, clients, and showings on a daily basis, but let’s face it: managing finances effectively is just as crucial as closing deals. While some may choose to handle bookkeeping in-house to save money, others prefer to outsource to professionals. If you’re stuck in a pickle trying to decide, here are three factors to consider to help you choose the best option for you.

1. Professional expertise and accuracy. Outsourcing your real estate bookkeeping means you can partner up with experts who understand the unique challenges of the industry. Their expertise ensures that all your records are meticulously maintained and compliant with industry regulations. This helps in significantly reducing the risk of costly mistakes.

While a DIY approach grants you complete control, it’s important to remember that it requires a deep commitment to mastering the complexities of financial management.

2. Cost and time efficiency. At first glance, outsourcing may seem expensive. But, it often saves you time and prevents you from expensive errors in the long run. By delegating bookkeeping tasks to specialists, you free up valuable time. This gives you the freedom to focus on core business activities and strategic growth.

On the other hand, handling bookkeeping yourself is indeed cheaper and cost-effective. But, you have to be extra vigilant because the hidden costs of time, potential missteps, and the burden of keeping up with industry changes can quickly add up.

3. Control and flexibility. Taking on bookkeeping in-house allows you to have full control over your financial data and the flexibility to customize processes to your specific needs. This hands-on approach can be very rewarding if you prefer to manage every detail personally. However, outsourcing offers a streamlined, standardized process that reduces day-to-day administrative burdens, allowing you to focus more on expanding your business—even if it means relinquishing some direct oversight.

Deciding between outsourcing and DIY bookkeeping is a critical choice that can significantly impact your real estate business’s efficiency and success. One thing you have to remember is that your decision depends on your unique circumstances.

So, if you’re a busy real estate professional who values expert support and wants to focus on strategic growth, outsourcing your bookkeeping proves to be the better option. But if you enjoy having complete control over your finances and are ready to invest time in learning detailed processes, a DIY approach might suit you best.

If you need help choosing the right strategy for optimizing your bookkeeping processes, feel free to contact me at andy@simple-numbers.com. I’ll be with you every step of the way!