ARTICLE | March 28, 2024

The Importance of Tracking Financial Metrics for Real Estate

A successful real estate investment relies on a robust strategy supported by key financial metrics, which provide insights into the potential profitability and risks of an investment. Metrics such as Net Operating Income (NOI), Cash Flow, Capitalization Rate (Cap Rate), Return on Investment (ROI), and Debt Service Coverage Ratio (DSCR) are integral to making informed decisions in the ever-dynamic real estate landscape.

The Role of Accounting Software in Real Estate

Accounting software can be instrumental in assisting real estate investors in tracking these financial metrics. A best-in-class software platform, such as Sage Intacct, can offer more than just data entry and basic financial calculations. It can play a critical role in everything from cash flow management to budget planning, providing real-time visibility into your real estate investments.

Enhancing Insight into Financial Metrics with Accounting Software

With customizable dashboards and reports, accounting software like Sage Intacct can help you delve into your real estate investment’s financial metrics. You can quickly analyze key performance indicators that align with your investment objectives. This real-time insight allows you to identify trends, areas for improvement, and areas of success, enabling you to make strategic decisions and confidently communicate your investment’s progress to stakeholders.

Cash Flow Management

Moreover, with robust cash flow management capabilities, software like Sage Intacct offers a real-time view of your financial position. You can accurately forecast cash inflows and outflows, ensuring that you always have a handle on your investment’s liquidity. This ability to anticipate cash flow surprises allows you to confidently plan for growth and respond to unforeseen challenges.

Real-Time Budget Analysis and Solutions

Monitoring how your actual expenses align with your budget is crucial to maintaining a profitable real estate investment. Sage Intacct’s real-time budget versus actuals feature provides instant visibility into how well you’re adhering to your financial plans. This empowers you to make informed adjustments, ensuring that your investment stays on track to achieve its financial goals.

In conclusion, selecting the right accounting software is a key step towards efficiently tracking and managing the financial metrics for real estate investments. Insero’s Outsource Accounting Services Group can assist you in choosing the right software and setting up reporting of these vital metrics. Contact us today to learn how we can help streamline your financial reporting process.

Do you have questions or want to talk?

Call us at (800) 232-9547 or fill out the form below and we’ll contact you to discuss your specific situation.

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About the Author: Kimberly Gangi

Kim is the head of the Outsource Accounting Services Group with over 25 years of experience in public accounting. Meet Kim >


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