As Real Estate businesses grow and expand, the need for efficient and cost-effective accounting and financial management becomes increasingly important. In this article, we will review three case studies where Bright Balance Accounting played a crucial role in providing low-cost, flexible, efficient accounting and financial management solutions.

Case Study 1: Real Estate Asset and Property Manager in Healthcare Space

The first case study involves a real estate asset and property manager that holds approximately 35 properties in the healthcare space. The client had lost their CFO, which made them require CFO and accounting support, without breaking the budget. They reached out to Bright Balance Accounting, who provided them with the required fractional CFO and accounting services.   

The client received a range of services including financial planning and analysis (FP&A), financial and lender reporting, cash management which included payables and invoicing, bank reconciliations, sales and income tax support. Bright Balance Accounting was also able to provide the client with calculations of their quarterly distributions and consistent management reporting. 

Bright Balance Accounting demonstrated the advantages of fractional CFO services to this client, providing the flexibility to adjust their service levels according to the specific needs of their business. With regular financial statements and management reports from the team, the client was empowered to make informed business decisions with greater confidence. In addition, partnering with Bright Balance Accounting allowed them to avoid the costs associated with hiring a full-time CFO and accounting team, ultimately saving them money.

Case Study 2: Real Estate Asset and Property Manager with Multiple Multifamily Properties

The second case study involves a real estate asset and property manager with around 40 multifamily properties ranging from a few dozen units to almost 1,000 units across the nation. The client had high volume bank accounts and cash accounting would only be completed after month end close, which resulted in low visibility of cash balances across the organization. The new CFO at the time needed help maintaining cash on a daily basis, reconciling in a timely manner, and giving better inputs into cash flow forecasting for multiple properties. The company was looking for ways to accelerate their cash posting and increase book cash visibility.

The Bright Balance Accounting team provided advisory solutions and support for bank reconciliation They achieved this by utilizing a combination of US based Controllers and Senior accountants offshore. This resulted in a cost-effective solution that increased the speed of general ledger entry and reconciliation. Ultimately, this improved the accuracy of weekly cash flow reporting and forecasting for the client.

Bright Balance Accounting has extensive experience in cash accounting and has a proven track record of implementing various solutions to improve visibility to cash.

The client was able to maintain daily cash reports and reconcile bank accounts in a timely and accurate manner through fractional accounting services provided by the Bright Balance Accounting team. In addition, the team provided valuable insights into the financial health of each property, thereby helping the client to improve their cash flow forecasting.

Case Study 3: Group of Startup Real Estate Companies

The third case study involves a group of startup real estate companies that branched off from an established residential realtor operation. The focus of the group was construction of commercial projects, investment, and remodel of multifamily and residential multifamily development. When they reached out to Bright Balance Accounting, the client needed low-cost fractional accounting and CFO/controllership support, from a team of experienced accounting professionals, who had expertise in the real estate industry. 

With their expertise and attention to detail, the Bright Balance Accounting team helped their client clean up previous reporting errors, providing more accurate financial projections and reports. In addition, they were a valuable resource in guiding the client through various financial decisions by clearly outlining the financial impact of each possible outcome. The client received a range of services from Bright Balance, including CFO support, financial planning and analysis (FP&A), financial statement reporting, bank reconciliation, and payroll services.

By partnering with Bright Balance Accounting, the client was able to acquire essential financial management and reporting services that allowed them to focus on growing their business. Over time, the client’s business model and cash flow changed, and as a result, the Bright Balance team was able to scale down their involvement while still providing crucial CFO and payroll services. The team is always available to answer any questions their in-house bookkeeper may have, ensuring that the client receives the support they need to succeed.

Bright Balance Accounting’s engagement model, methodology, and staffing makes us different. 

A growing real estate company will have a lot to gain by hiring a fractional accounting firm. By doing so, they can enjoy the benefits of having a dedicated team of experienced professionals working on their numerous accounting needs without the costs and risks that are associated with hiring a full-time staff member or even by using a staffing agency. The flexibility and scalability of a fractional accounting service can allow companies to adjust their accounting needs while their business grows. With a fractional accounting firm, your growing real estate company can focus on the core of your business strategies and feel confident that your financial management is being handled by a team of experts. 

At Bright Balance, we strive to be the leader in providing low-cost, flexible, and efficient accounting and financial management solutions to businesses. Our fractional CFO and accounting services provided by Bright Balance Accounting enable the clients to save on the cost of hiring full-time accounting and financial management teams, while still receiving high-quality financial management services. The Bright Balance team’s focus on flexibility, relationship, responsibility, and cost efficiency sets it apart from other fractional accounting firms.

If you would like to receive a sample proposal for your real estate company or would like to meet someone from our team, who could help in exploring if a partnership would be beneficial to your business, email us today at info@brightbal.com.

Contact our Dallas office for a complimentary CFO consultation to explore the benefits of Fractional Accounting with Bright Balance today!