Rental properties have always been a popular method of building wealth and creating an income. The cost of rent has increased significantly since the lockdowns of the pandemic ceased. That increase has motivated many to invest in rental properties of their own. However, before becoming a landlord its critical that individuals explore the pros and cons. Most people new to the rental industry don’t examine both side of the equation. It’s important to understand that operating rental properties is a business and is going to require the services of an accountant if the enterprise is to be profitable.

The Benefits

Being a landlord is a great job for those who are people persons. They interact with an array of interesting people. It’s also a good business for those who are retired. Benefits of a rental business include:

• Nearly passive income
• Long-term investment
• Tax deductible business expenses
• Can be operated in addition to a “day job”
• Can pay for itself on a monthly basis
• Property value increases
• Equity accrual

The Disadvantages

Operating rental property has some definite disadvantages, the most obvious of which are destructive or constantly complaining tenants. Other considerations include:

• Must be operated as a business
• Maintaining compliance with the law
• Tenant screening
• Time consuming investment
• Yearly upkeep and maintenance
• Tenant safety and security
• Appliance replacement
• Cost of contractors to perform repairs

Perhaps one of the most unpleasant tasks of a landlord is evictions. It can be a difficult, costly and time-consuming process, during which time the structure isn’t earning any income.

An Accountant Can Help

An accountant that specializes in real estate tax accounting is invaluable. He or she can help improve profitability, file accurate tax accountings, and do so at the appropriate time. The accountant can help property owners plan for the future and establish online rent paying. They’re experts at assisting rental property business owners minimize their tax liability, stay updated on pertinent laws, and maximize their business structure.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

As a business owner, you’re always looking for strategies to maximize your profitability. Many enterprises are reaping the benefits of outsourcing to accomplish financial goals. Even the smallest of companies can take advantage of outsourcing. The practice has been prevalent since the late 1980s and has given rise to an increasingly large gig economy.

What is Outsourcing

It’s a popular practice that many businesses utilize to save money. Business owners hire a third-party individual or firm outside the company structure to perform services, complete tasks, or provide products that would ordinarily be done in-house by regular employees. Outsourcing services are most often delegated to resources in other countries where labor costs are cheaper.

How it Can Save You Money

Unlike an on-site employee, there are no employee-based insurance costs or benefit packages the business must provide. Outsourcing enables businesses to provide high-quality services at a fraction of the cost. The practice enables business owners to focus on the core aspects of their enterprise, while delegating other tasks that they may not be able to provide as well as another.

Outsourcing can help businesses expand their range of services. It’s also helpful for providing enterprises with access to high-tech resources, eliminating the need to purchase expensive and specialized software or equipment.

Many Ways to Save

One of the most well-known examples of outsourcing is customer service call centers. Payroll and accounting are often outsourced instead of performed on-site. Products ranging from ties and hats to T-shirts are often outsourced. Other examples include:

• Marketing and advertising
• Information technology
• Legal services
• HR department duties
• Cleaning services

A great many services are regularly outsourced by companies without realizing what it’s called.

Solutions for Any Business

No matter what industry a business operates within, there are opportunities for outsourcing. Contracting with a third-party can help a business operate more effectively and cost efficiently.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

A payroll service provider helps small business owners streamline the process of collecting payroll taxes and filing federal and state reports. Payroll services experts provide support to help make sure compliance with federal and state regulations and requirements governing payroll and paychecks in any state. Get the systems and resources you need to properly hire and manage employees, as well as pay employees when you grow.

Make the most of your employee base. Most small business owners don’t expect to encounter payroll headaches right away. If you plan to provide employees with paper reports, such as your paychecks and federal tax reports, you will probably be surprised at the number of errors that can pop up over time. The time savings gained from payroll services can more than outweigh the cost of providing paper reports for each individual employee. With electronic reports, there is no need to print out paper copies of documents that have been downloaded.

Your payroll services company can provide reports that include both payables. In general, the reports will contain summary information, which includes gross pay, deductions, and net income, as well as specific details about each employee’s pay, assets, and deductions. The information provided should be consistent with the types that are listed in your employee manual. To make sure the information is correct, it’s a good idea to have a payroll services company verify the information.

Prepare your financial reports properly. Payroll reports are not filed with federal tax forms; instead, they must be filed with W-2 form documentation. For some, this may mean an entirely new filing procedure. For others, simply making sure their payroll numbers match what they filed in the last year can make the difference between success and failure.

You can also take care of a lot of your tax-related worries by making direct deposit. Many companies today offer automatic direct deposit, meaning they deposit the employee’s paycheck directly into their bank account every payday. This saves them time and eliminates the need to write out checks, which saves money. It also makes it easier to track all of the employees’ expenses. If you do not currently have an automatic direct deposit program, talk to your payroll services provider. They may be able to recommend an option that you have not considered.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!

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