Outsourced Real Estate Accounting: A New Year's Resolution for your business
January 6, 2022

Do you have your 2022 resolutions mapped out for your business? Maybe it is time to rebrand? Update your website? Increase your online sales? May we suggest one you haven't considered? Or were apprehensive to consider? Outsourcing your finance and accounting duties to alleviate time and cost, allows you to focus on the more important aspects of the business.

Since its inception, SX Business Services has been helping our clients learn the value of outsourced real estate accounting. By allowing us to manage their finance and accounting practices, our clients have more time and money to dedicate towards company goals and other priorities of managing the business. By focusing on the other priorities of reaching company goals they are able to run a more successful business.

Outsourcing was a steady trend prior to the Covid-19 pandemic. However, the pandemic proved the strength in utilizing outsourcing for businesses, by allowing important functions of the business to continue without interruption from employee absence, or local restrictions. Outsourcing is a persistent and growing trend for businesses of all sizes, for a number of important reasons. There are many supporting functions in business that are required to keep a company operating, but the internal cost of having employees on the payroll in these roles is often not the best way to meet the need.

Real Estate Businesses that are equipped with an outsourced accounting solution are well positioned to keep financial operations running smoothly amid any interruptions; local restrictions; employee illness or death; vacation; maternity/paternity leave. The ability to be agile to meet the evolving demand will be a leading indicator of business growth and success. A trusted accounting outsourcing provider can help businesses remain agile and take advantage of economic opportunity.

Outsourced financial operations also provide organizations with a high degree of scalability. Not all outsourced accounting firms are the same. Outsourced accounting operations provided by a trusted partner can help position an organization to seamlessly deal with the complexities associated with running a business. The depth of services and collaboration found within a reputable service provider can help organizations modernize expertise, fast-track opportunities and improve synergies. Outsourcing through a firm with diverse knowledge and a depth of expertise can better position real estate businesses to navigate opportunities even in a remote work environment.

One of the most critical considerations when choosing a respected outsourced accounting provider is the firm’s technical expertise. A knowledgeable and competent partner can help business owners avoid having to wade through the abundance of new legislation and take advantage of accounting and finance opportunities being created through a volume of new rules, regulations, loan options and income tax changes. Businesses are relying on their trusted advisors’ know-how now more than ever.

The move toward technology-based communication has accelerated through programs like Skype, Teams and Zoom. These technologies have temporarily replaced face-to-face meetings with virtual meetings. Although there is still innate value associated with in-person meetings, it seems clear that technology-based communication is here for the long term. The finance and accounting outsourcing industry is experiencing a similar technological trajectory. Real Estate businesses already working with a trusted outsourced accounting provider are likely reaping the accounting, finance and communication benefits.

Real estate companies considering acquiring the benefits of real estate outsourced accounting should schedule a consultation today to discuss how SX Business Services can assist your business! 

5 Costly Accounting Mistakes in Rental & Leasing—and How Outsourcing Can Save You

By Lindsay Van Kauwenberg • January 22, 2026
Managing rental properties and leasing agreements is no small feat. Between tenant payments, maintenance costs, and compliance requirements, even minor accounting mistakes can lead to major financial consequences. Unfortunately, these errors are more common than you think—and they can cost property managers thousands in lost revenue, penalties, and inefficiencies. Here are five common accounting mistakes rental and leasing companies make—and why outsourcing your accounting could be the smartest move for your business. 1. Mismanaging Security Deposits Security deposits are subject to strict state regulations. They must be properly recorded, held in separate accounts, and returned within legal timeframes. Misallocating these funds or failing to track them accurately can result in legal penalties, tenant disputes, and reputational damage. Example: A property manager accidentally uses a tenant’s security deposit for operating expenses. When the tenant moves out, the funds aren’t available—leading to legal action and fines. 2. Inaccurate Rent Tracking Late payments, partial payments, and rent increases can easily cause errors in your books. Missing even one entry can throw off cash flow and make financial reporting unreliable. This often leads to incorrect budgeting and missed opportunities for growth. Impact: Poor rent tracking can result in underreported income, making your financial statements inaccurate and potentially causing tax issues. 3. Overlooking Maintenance Expense Allocation Property maintenance costs often get lumped together or misclassified. This can distort your profit margins and lead to incorrect tax deductions. For multi-unit properties, failing to allocate expenses properly can make it impossible to assess which units are profitable. 4. Failure to Reconcile Escrow and Operating Accounts Rental businesses often manage multiple accounts for deposits, operating expenses, and reserves. Skipping reconciliations can allow discrepancies—or even fraud—to go unnoticed. Regular reconciliation is essential for catching errors before they spiral out of control. 5. Ignoring Compliance and Tax Rules Rental income is subject to specific tax regulations, and mistakes in reporting can trigger audits or fines. Many companies also fail to properly account for depreciation on rental properties, missing out on significant tax benefits. Why Outsourcing Is the Solution Outsourcing your accounting to professionals who specialize in property management offers key advantages: Industry Expertise: Outsourced teams understand rental-specific regulations and best practices. Improved Accuracy: Reduce costly errors in rent tracking, deposits, and expense allocation. Cost Savings: Avoid hiring full-time staff and reduce overhead. Scalability: Easily handle growth as you add more properties. Peace of Mind: Stay compliant and focus on tenant satisfaction instead of spreadsheets. Bottom Line Simple accounting mistakes in rental and leasing operations can cost thousands in lost revenue, penalties, and inefficiencies. Outsourcing ensures accuracy, compliance, and financial clarity—so you can focus on growing your portfolio. Ready to eliminate costly mistakes and streamline your accounting? Contact us today to learn how outsourcing can transform your rental business.

What to Look for When Choosing an Outsourced Real Estate Accounting Firm

By Lindsay Van Kauwenberg • July 9, 2025
Choosing the right outsourced accounting partner requires a careful evaluation of several key factors.

SX Business Services Employee Spotlight: Edward Keogh, Accounts Payable Administrator

By Lindsay Van Kauwenberg • May 1, 2025
SX Business Services is proud to introduce our newest Accounts Payable Administrator, Ed Keogh. His first job out of school was in financial services in Dublin where he spent 7 years working in various roles in the branch. Originally from southwest Dublin, he emigrated to the US in 2003. Married for 22 years to his lovely wife Sue they share two sons together, Aodhan (18) and Ryan (12) and a beautiful love story. They met at a bar in Dublin one Wednesday night and hit it off immediately while she was travelling through Europe. After a week or two of dating they took a vacation together and before the trip ended, he asked her to marry him with only his Claddagh ring. The importance of family was instilled in Ed as he was raised in a small 3-bedroom house with his parents and 6 siblings. He tries to return to Ireland once a year and brings his family back when he can. He loves watching, playing, and coaching football (OK soccer) and has been a volunteer Treasurer for Norwood Youth Soccer since 2019. His favorite team is Manchester United, and his favorite US soccer team is the NE Revolution. Additionally, he enjoys woodworking and has a small woodshop in his basement at home. He and his wife have traveled extensively together through the years and have also brought their kids to places such as: Ireland (obviously), Mexico, Canada, Spain, and Dominican Republic. Once they find a place they like, they are known to go back. Ed in his own words: What do you like about working at SX so far? “I love how friendly everyone is since I only started last month. I love the collaborative spirit as well. I love the work, my team and everyone I have come into contact with here.”