Case Study 3
Clarity & Control for a Growing
Real Estate Portfolio
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Client Profile: A Growing Texas Real Estate Investor​
Industry: Commercial Real Estate Investment & Property Development
Location: Dallas/Fort Worth Metroplex, Texas
Annual Revenue: Over $1.5 Million (from rents & sales)
The Challenge:
​This real estate investor managed a growing portfolio of 8 commercial rental properties and had recently started a small development project. Their financials were disorganized across various spreadsheets, making it nearly impossible to assess individual property performance or accurately prepare for tax season. The owner felt overwhelmed by the lack of clear financial insights.
The Challenge
With each new property acquisition, this investor's financial data became more fragmented. They lacked consolidated reporting for their entire portfolio, and generating accurate Profit & Loss statements for individual properties was a time-consuming chore. This hindered their ability to make informed decisions about acquisitions, renovations, and tax planning, causing significant anxiety during tax season.
Our Solution
Centralized Property Accounting & Strategic
Tax Readiness
Providence Bookkeeping & Tax Services partnered with this Texas real estate investor to bring order and insight to their real estate financials:
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Empowering Their People: We provided the owner and their small administrative staff with training on proper transaction categorization for real estate-specific expenses and income (e.g., tenant rents, CAM, repairs, property taxes). We clarified the importance of separating property financials.
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Optimizing Their Process: We established a standardized chart of accounts and consistent monthly reconciliation procedures for each property. This ensured that all income and expenses were accurately recorded and allocated, creating a clean audit trail. We also implemented a proactive process for collecting and organizing tax-relevant documents throughout the year.
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Enhancing Their Program: We implemented a centralized accounting system (integrated with their existing property management software) that allowed for detailed, property-level tracking and reporting. This provided them with clear Property Operating Statements and consolidated financial reports at the click of a button.
The Results &
KPI Impact
This Texas real estate investor gained unprecedented clarity and control over their real estate portfolio.
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Enhanced Financial Clarity: They now receive clear, detailed Property Operating Statements monthly, allowing them to instantly see the profitability and expenses of each individual asset.
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Simplified Tax Season: Their books are consistently organized and audit-ready, reducing tax preparation time by over 70% and significantly minimizing pre-tax season stress. They also identified additional eligible deductions.
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Smarter Investment Decisions: With accurate, real-time data, the owner can now confidently evaluate the performance of existing properties and make data-driven decisions on potential new acquisitions, leading to an improved Net Operating Income (NOI) for their portfolio.
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Peace of Mind: The owner no longer dreads financial reviews or tax season, feeling fully supported and informed about their real estate investments.
