How can your REIT Accounting Function Achieve Scale without Compromising Quality?
REIT fund managers are constantly juggling tasks – meeting revenue targets, managing data and investors, and maintaining an accounting infrastructure. Spending time on non-critical functions like maintaining controls and producing authentic reports dilutes their focus on scaling their core business.
Most accounting functions and tasks can be managed and scaled with the help of a transformation expert having deep knowledge of the accounting function. More and more businesses are looking for such supporting services today. The global market for Finance and Accounting Outsourcing, estimated to be worth $43.1 billion in 2022, is projected to reach $53.4 Billion by 2026, growing at a CAGR of 5.9%, says a Research and Markets report.
According to a KPMG survey, the top activity to be fully or partially outsourced at present is tax preparation and filing, at 84%. Other key activities that are fully or partially outsourced include property and fund accounting, at 58 percent and 45 percent, respectively.
When to Look for in a Partner?
The key reasons for REITs choosing to work with a trusted accounting services partner are:
- Accounting and financial laws, regulations, and compliance policies are updated frequently and it is a challenge to keep track of them.
- Operational costs are high for an internal accounting team handling hiring, recruitment, payroll, training, taxes, and other expenses.
- Analyzing data and creating financial reports with all the necessary information is time-consuming.
- Processes that need to be simplified have to be identified for citizen automation.
- During times of disruption, human resources and processes require backup to ensure business continuity
What does a Transformation Expert Bring to the Table?
With a transformation partner, your accounting function can achieve:
- Scale: An external partner can provide the capacity and capabilities to help you scale operations up/down on demand, according to your business requirements.
- One-Stop Accounting & Financial Solutions: You will have single-window access to a range of solutions to meet all your accounting and financial processing needs.
- Secure Accounting Services: The partner can offer advanced security and back-up data on a cloud server, ensuring data confidentiality.
- Tracking Regulations: The partner firm will keep track of all the changes in accounting laws and ensure compliance by implementing them in the accounting practices.
- Time management: Senior managers will have more time to focus on income-generating key functions.
- Cost: Apart from personnel costs, you can also save on OPEX.
- Optimized Task Assignment: Handling vast volumes of data with a small team is a challenge and an external team can easily manage it. As a result, resource allocation becomes increasingly efficient.
- Advanced Tech Access: You can leverage expensive state-of-the-art PropTech for everyday accounting and financial functions without the burden of a heavy CAPEX.
The RRD GO Creative™ Advantage
RRD GO Creative™’s experienced REIT support team provides a range of vital services such as investment and fund accounting, fixed asset management, and audit/compliance services. The team employs a mix of automated solutions, data analysis, and human expertise to help your business smoothly address everyday accounting needs as well as seasonal peaks and troughs.
We align our services with your organizational objectives, develop processes and solutions customized to your specific needs, and enable you to rapidly scale your financial accounting operations.
For more information on our REIT services, click here.