This post was authored by Sasha Hryciuk, CEO and founder of Loft47.
The Xero Marketplace is a rich resource for accounting practices looking to expand their offerings and focus on specialization. There are many app partners that address niche markets and expand on Xero’s incredible functionality. These app partners offer customized solutions solving specific industry challenges. Small businesses often benefit from accounting experts who add additional value to those offerings.
Loft is one of those app partners. We are a real estate accounting platform that records, tracks, and distributes commissions and sales information for realtors and brokerages. Loft has taken the principles of traditional accounting in Xero and used workflow as the driving engine to automate journal entries.
The owners at Loft have more than 60 years combined experience working in real estate sales and operations. So we recognized a need in this underserved market. We built a tool that makes life a lot easier for brokerages and realtors.
For accountants and bookkeepers, real estate agents represent an ideal opportunity to specialize in a niche.
- They are a large, underserved population in every single community nationwide. The industry boasts more than 14 million transactions a year with 2 million Agents working under 90,000 Brokerages.
- The ebb and flow of the economy does little to stifle the volume of transactions processed annually, as sales occur in periods of low or high economic activity. The reasons to sell may change, but the volume stays the same.
- Real estate agents and brokers represent a tight referral network; once you have a few clients engaged, advertising your expertise through the Xero advisor network can kick it into high gear.
Becoming an Expert doesn’t have to be hard
Understand the Workflow
Loft has a resource library to help educate how real estate transactions work and why. We want to share our expertise.
Every deposit or payout posted in Loft will batch down to Xero with the complete journal entry to adequately record the line items that matter. So all the tough stuff is done behind the scenes.
Interpreting the Data
The value-add comes from interpreting the data to bring meaningful insight to your clients. Knowing what matters to them is paramount, and with Loft, you can provide accounting and real estate specific insight to their financial operations.
Coming to Xerocon!
We have launched our agent product, which we will showcase at Xerocon Atlanta. We know agents have been neglected when it comes to automated data, and we are fixing that specific problem! The agent product allows each agent to have their own copy of Xero, so as their office closes deals, accounting data auto transfers into their Xero account. This provides each agent with true business accounting on an ongoing basis, with zero data entry.
With Xero C+ and other independent contractor tools coming your way, we know this is a match made in heaven.
If you’re interested in giving your practice a boost, think about a niche, think about the Xero Marketplace, and think about real estate! Find out more on our website. Join us at Xerocon for the breakout session, “Nail your niche“, on day two to learn more about the unique opportunity real estate accounting offers.