What’s the Difference Between a Real Estate Bookkeeper vs. Generic Bookkeeper?

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.

If you’re in real estate and using a general bookkeeper, I need to tell you something important: you’re leaving money on the table. Worse, you could be setting yourself up for costly mistakes. Real estate isn’t like other industries. It has unique rules, tax benefits, and reporting needs. A bookkeeper who doesn’t specialize in real estate might miss things that could save—or cost—you thousands. Here’s why hiring a real estate-specific bookkeeper isn’t just a nice-to-have. It’s a must.

They understand real estate tax laws. Did you know real estate offers some of the best tax benefits in the business world? From depreciation to 1031 exchanges, the opportunities to save money are huge. But these benefits aren’t obvious to a general bookkeeper. A real estate-specific bookkeeper knows these laws inside and out. They’ll make sure you take full advantage of them while staying compliant.

They track cash flow the right way. Real estate cash flow isn’t like cash flow in other businesses. You’re dealing with rental income, property expenses, mortgages, and more. It’s easy for things to get messy if they’re not tracked properly. A general bookkeeper might lump everything together, making it harder to see your true profits. A specialized bookkeeper, on the other hand, knows how to separate these streams and give you a clear picture of your financial health.

They simplify compliance and audits. Let’s face it—nobody likes audits. But in real estate, you’re more likely to face them due to complex transactions. A real estate-specific bookkeeper understands the paperwork and compliance required to keep your business audit-proof. They’ll ensure your records are clean and ready to go, saving you from headaches later.

I’ve seen too many real estate professionals try to save money by hiring a general bookkeeper. They end up spending more fixing errors or losing out on tax breaks. Don’t make the same mistake. A real estate-specific bookkeeper is an investment that pays off through accurate reporting, tax savings, and peace of mind.

If your bookkeeper doesn’t specialize in real estate, and you need someone who can help you deal with all the laws and compliance, you can call or text me at 507-251-6403. I will help you ensure that you are not leaving any money on the table in your real estate business.