When it comes to running a profitable and successful real estate business, understanding your numbers is the first step towards strategic decision making. Are you familiar with your financial statements? While many successful women in real estate have some familiarity with the profit and loss statement, it’s important to have a firm grasp on all three financial statements. Together, the profit and loss statement, balance sheet, and statement of cash flows can help drive powerful decisions and make your business more profitable! Plus, there’s even more you can do with advanced reporting options!
It's time to increase your financial reporting standards.
What if we told you that the basic financial statements are only giving you half the story? Your basic financial reporting system can tell you, on a basic level, if your company is profitable and whether or not your cash flow is solid enough to keep moving forward, but the truth is, investors need more knowledge.
When it comes to investing, keeping the doors open on your business isn’t the goal. The goal is to maximize the profitability of each deal over and over again. The only way to do that is to continually strategize your next moves based on solid company financials. Unfortunately, the basic reporting systems just do not provide the level of insight needed to do that. That is where advanced reporting comes in.
What is advanced reporting?
In QuickBooks Online, Advanced Reporting is a feature that lets you create customized reports that are specific to your individual needs. There are some starter reports that QuickBooks provides based on common key performance indicators (KPIs), but for most investors, customized reports will bring you the most comprehensive and strategic view of your finances.
Because we believe that boss babes deserve it all, we specialize in creating customized models for clients that show you the exact numbers that matter to your business. We can even create a dashboard to give you the most important information first!
What do I need to get started with advanced reporting?
Let us be clear. Your financial reports are only as good as the financial data behind them. Even basic financial reports can be useless to investors if the information used to create them is inaccurate. With advanced reporting, there is even more opportunity for things to get mixed up if financial data is not recorded correctly. It is extremely important to start with clean and intentionally organized data to run accurate advanced reporting models.
What can advanced reporting tell me about my real estate business?
At this point you might be thinking Wow! This seems like a lot of work. What’s in it for me?
We’re so glad you asked! With advanced reporting, you can level up your decision making and investment strategies by being able to answer questions like:
- Which type of investments are most profitable for me?
- Do I have the cash flow to take on certain types of investments but not others?
- Can I afford to become a private money lender?
- Should I stop investing in certain types of properties?
- Are certain types of investments worth the time I’m putting into them?
- Which investments generate a return more quickly?
- Is my ROI on marketing meeting benchmarks?
- And so much more!
Not only will being able to answer these questions benefit you from a strategic standpoint, it can also help you if you are seeking to secure funding from another investor. The best part? ZERO number crunching is required! All you have to do is pull up your advanced reporting dashboard and see clear metrics in real time.
How to tap into the power of advanced reporting
The financial data you can gain from advanced reporting is the #1 way to boost your business and take your investment strategies to the next level. Are you ready to get started? In order to move forward, you’ll need to ensure that your financial data is clean and organized. This will prepare your account for the models you’ll be running and give you the ability to set up the formulas needed to create your dashboard. This work is delicate and can be easily skewed, so we highly recommend getting a professional bookkeeper to help you establish and maintain accurate advanced reporting.