Prepare your exit strategy
Plus: 'You oughta know' this singer who was swindled out of $5M
We are diving into the messy world of real estate investors who'd rather talk about their latest flip than reconcile their books. Don't worry; we've got a solution.
Plus, meet the accountant-turned-embezzler who stole millions from Alanis Morissette. He's putting it all out there.
We're also talking AI, selling your firm and why bundling bookkeeping with tax services really isn't optional.
IRS, but make it slower: Some surviving spouses and family members are waiting more than a year for final refunds from the IRS.
Finances held together with duct tape and vibes? Accounting systems strategist Nikole Mackenzie's got a game plan for turning a hot mess into financial finesse.
Does marketing your bookkeeping biz give you stage fright? This video has practical tips to ditch the awkward conversations and actually land clients.
PSA: Your staff accountant is probably stressed. This TikTok from Sarah Nicole reminds us a simple "you're doing great" message can make their week.
Stop treating bookkeeping like an afterthought: Bundling bookkeeping with tax services can help you build the firm you actually want.
Real estate investors and bookkeeping: A messy relationship?
Let’s be honest—most real estate investors would rather talk about their latest deal than balance their books. But as their advisor, you know skipping out on solid accounting is a fast track to missed deductions and financial headaches.
Adam Hamilton, co-founder of REI Hub, an accounting software platform tailored for tracking and managing real estate investment properties, has seen it all. REI Hub is on a mission to make rental property accounting less painful. Hamilton sat down with The Net Gains to share his take on how accountants can help their real estate investor clients get their books in order and stop leaving money on the table. –Janet Berry-Johnson
Many real estate investors struggle with bookkeeping because they don’t come from a financial background. What are the biggest accounting mistakes you see investors make, and how can they avoid them?
One of the biggest accounting mistakes I see real estate investors make is simply not taking advantage of all their possible deductions. When it comes to real estate investing, deductions are absolutely everything. People often fall short of deducting everything they can for one of two reasons: they don’t know what they can deduct, or they don’t keep good enough track of all their expenses.
What should investors look for in rental property accounting software, and how can technology make bookkeeping easier for landlords?
Generally, it’s better to choose an accounting software platform that might offer a little more than you think you want because you may discover that you actually do want more features. Another thing to consider is how many properties you have—some software providers are better when you just have one or two, while others are better equipped for many properties.
For investors who have been managing their rental property finances manually, what are the first steps they should take to transition to a more streamlined accounting system?
The first step they should take is getting all their records properly organized and stored. If they have primarily physical records, for example, they may want to scan all of that and create digital files. Also, it’s a good idea to get in contact with a representative of the software company you are transitioning to. Ask them any questions you have or for advice about how to make the transition as streamlined and efficient as possible.
Start your exit strategy now
Thinking about selling your firm someday? The best time to prep isn't when a buyer shows up—it's right now. Alastair Barlow, co-founder of flinder and Bhimal Hira, partner at Prysm Financial, dished out hard-won advice at the recent Festival of Accounting and Bookkeeping, which took place at the National Exhibition Center in Birmingham, U.K. Their suggestion? Get your financials in order, build a strong Confidential Information Memorandum (CIM) and focus on making your business run without you.
Why? Buyers love predictable profits (read: EBITDA) and systems-driven firms. Oh, and don't forget your team—keeping them in the loop early prevents post-sale surprises.
Why this matters: Whether you're selling next year or sometime next decade, building a well-oiled, scalable firm pays off—literally. Start shaping your story now. (AccountingWEB)
Meet the guy who stole $5M from Alanis Morissette
What happens when a trusted business manager crosses the line? In this jaw-dropping episode of the Oh My Fraud podcast, host Caleb Newquist interviewed Jonathan Todd Schwartz, the man who embezzled millions from celebrity clients, including $5 million from singer-songwriter Alanis Morissette.
Schwartz opens up about his path from CPA to convicted fraudster, sharing how unchecked gambling and addiction fueled his white-collar crimes. It's a fascinating (and uncomfortable) reminder that fraudsters don't always look like villains—they often wear suits and smile at client meetings. 😁
Why this matters: Even the most buttoned-up professionals can fall into fraud. Internal controls aren't optional—they're essential. (Oh My Fraud)
$5.7 billion
The amount Americans lost to investment scams in 2024, according to the FTC. (CNBC)
A Change Advisory Board keeps tech chaos from blowing up busy season
The former AICPA chief joins advisory role at 4impactdata
Now is the perfect time to raise fees and fire headache clients
How to lead your team through tax season stress
IRS R&D rule tweaks trigger tax-time scramble
Don't surrender your smarts
A new Harvard Business School study warns that while AI is great at sorting through heaps of data, it's not so hot at making nuanced decisions—especially when there's no clear, objective right answer.
In an experiment evaluating thousands of innovation proposals, researchers found humans were more likely to defer to AI's slick, convincing reasoning, even when it was objectively wrong.
Why this matters: Sure, AI can crank out financial summaries and catchy client emails at lightning speed, but are you double-checking its work? No matter how fancy the tech, critical thinking, professional skepticism and good ol' human judgment are still an accountant's biggest assets. (Harvard Business School)
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The Net Gains is curated and written by Janet Berry-Johnson and edited by Bianca Prieto.