New Survey Reveals Significant Savings on Accounting Costs

Understanding the Impact of Outsourced Accounting Services

AccountTECH, a prominent developer of accounting software for the real estate sector, has conducted an insightful nationwide survey focusing on the cost of outsourced accounting services specifically tailored for real estate brokerages. The study sheds light on how these services can dramatically reduce labor costs associated with managing finances in real estate.

Labor Costs in Real Estate Brokerages

In the first half of 2024, the average labor expense for real estate agents was reported to be around $461.99 per month for each agent. This figure accounts for various roles within the firm, including managers and executives, providing a comprehensive view of operational costs in brokerages.

Trends in Labor Costs

Interestingly, the study indicates that labor costs decrease as brokerage size increases, but this trend alters when the firm surpasses 100 agents. In such larger firms, the costs associated with managerial roles begin to elevate total labor expenses, suggesting that economies of scale only apply up to a particular threshold.

Average Labor Costs Based on Agent Count

The research delineates average total labor costs per agent depending on the size of the brokerage:

For firms with 0-10 agents, themonthly cost was approximately $788.83, while those with 11-20 agents averaged around $598.96. As the firm grows to between 21-50 agents, costs significantly drop to $475.39. Further analysis shows that for brokerages with over 100 agents, costs continue to reflect the complexity and scale of operations.

Outsourcing Accounting Services

As businesses consider outsourcing, the findings from the AccountTECH survey highlight typical costs associated with outsourced accounting based on agent count. For instance, brokerages with 0-10 agents may expect to pay an average of $157.64 for outsourced accounting services, whereas those with 500 or more agents see rates that plummet to just $5.66 per agent per month.

Reasons to Outsource Accounting

One of the key motivations for brokerages to outsource their accounting functions is the significant reduction in costs and the potential for higher efficiency. By delegating these responsibilities to specialized firms, real estate companies can focus on their core activities while ensuring that their financial management is handled professionally.

For example, smaller brokerages with minimal accounting needs benefit immensely from lower fees compared to maintaining an in-house accounting division. Outsourced services could lead to savings and improve financial oversight.

AccountTECH stressed that their survey emphasized the relationship between agent count and the requirement for accounting services. As firms look to streamline operations and reduce operating costs, outsourcing provides a strategic advantage.

The Bigger Picture: Investing in Efficiency

There is an increasing recognition among real estate professionals about the advantages of investing in efficient systems. AccountTECH has been dedicated to providing technology solutions that reduce operational barriers in real estate brokerages. Their software offering, darwin.Cloud, enhances operational efficiency by automating mundane accounting tasks.

Meet AccountTECH

With over 25 years of experience in the industry, the team at AccountTECH focuses on mitigating financial headaches for real estate businesses. Their integrated approach ensures seamless accounting processes while maintaining high standards of service.

Frequently Asked Questions

1. What is the primary finding from the AccountTECH survey?

The survey reveals that outsourcing accounting can significantly lower labor costs for real estate brokerages.

2. How does firm size impact labor costs?

Labor costs tend to decrease as firms grow, but for those with over 100 agents, costs begin to rise due to increased managerial expenses.

3. What are typical costs of outsourced accounting?

Costs for outsourced accounting vary by size; small brokerages can expect around $157.64 per agent monthly, while larger ones could see as low as $5.66.

4. Why should brokerages consider outsourcing accounting?

Outsourcing allows brokerages to save on costs and focus on their core operations, ensuring financial matters are handled by specialists.

5. How can AccountTECH help real estate brokerages?

AccountTECH provides comprehensive accounting solutions and software designed to enhance efficiency and reduce operational burdens in brokerage management.

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