Profits

Attention Real Estate Investors: Why You Need a Local CPA in Burbank to Maximize Your Profits

jbergeron Accounting, Business Tips, Profitability Tips, Profits

Investing in real estate is a powerful way to build wealth, but managing the financial side of things can be overwhelming. Between tax laws, bookkeeping, and strategic financial planning, real estate investors have a lot to juggle. That’s why working with a knowledgeable real estate CPA in Burbank is one of the smartest decisions you can make.

Specifically, the right CPA can help you reduce tax liabilities, streamline your finances, and ensure compliance—all while maximizing your profits.

Maximize Tax Savings with a Real Estate CPA

One of the biggest advantages of partnering with a CPA is the ability to take full advantage of tax deductions and credits. Many investors miss out on significant savings simply because they aren’t aware of all the available tax benefits. A CPA with real estate expertise ensures you’re leveraging deductions like depreciation, mortgage interest, and maintenance expenses to keep more of your earnings.

Stay Compliant and Avoid Costly Penalties

Beyond tax savings, compliance is another crucial aspect of real estate investing. Federal, state, and local tax regulations can be complex and frequently change. A CPA helps you navigate these rules, ensuring accurate reporting and avoiding penalties that could eat into your profits. From structuring your investments in the most tax-efficient way to handling capital gains and 1031 exchanges, expert guidance can make a huge financial difference.

Keep Your Finances Organized with a Professional Bookkeeper

Another key element of successful real estate investing is strong financial organization. Keeping track of rental income, expenses, and maintenance costs is essential, but it’s easy to lose control of the details. With a skilled bookkeeper in Burbank managing your records, you’ll always have an accurate view of your cash flow. Proper bookkeeping not only makes tax filing easier but also allows you to make informed financial decisions for the future.

Strategic Tax Planning for Long-Term Success

Strategic tax planning is what sets successful investors apart. It’s not just about filing taxes—it’s about creating a long-term financial strategy that protects and grows your wealth. A real estate CPA in Burbank helps investors structure their businesses correctly, whether through LLCs, S-corps, or other entities, to optimize tax benefits and liability protection. They also provide guidance on the best ways to expand your portfolio, ensuring your investments remain profitable as you scale.

Focus on Growth While a CPA Handles the Details

Real estate investing can be demanding, but working with a CPA takes much of the financial stress off your plate. Instead of worrying about tax deadlines, bookkeeping errors, or compliance issues, you can focus on acquiring properties, increasing cash flow, and growing your portfolio. Having a financial expert on your team means peace of mind, knowing your investments are positioned for long-term success.

Work with a Trusted Real Estate CPA in BurbankIf you’re ready to take your real estate investments to the next level, partnering with a CPA who understands the industry is essential. At Magidov CPA Firm, we specialize in tax planning, bookkeeping, and financial strategy for real estate investors. Contact us today to learn how we can help you optimize your investments and achieve your financial goals.

Mix Up Your Revenues for More Profits

sonyatimpone Blog, Business Tips, Profits

Many small business owners focus on generating more revenue every year, and that’s a wonderful goal. But not all revenue is created equally since some items are more profitable than others. If you sell more than one product or service in your business, then you may benefit from looking at your revenue mix.

While it’s fun to watch revenues grow, your business profit is what really matters. If your expenses grow faster than your profits, then you have a lot of activity going on, but you don’t get to keep as much of what you make.

An insightful exercise to try is to take a look at your revenue mix. Then you can ask “what if?” to optimize your profits.

Your Revenue Mix

Let’s say you offer three different services: Services J, K, and L. Your revenue pie looks like this:

J: $700K or 70% of the total
K: $150K or 15% of the total
L: $150K or 15% of the total
Total: $1.0 million

In this example, Service J is clearly the service making you the most revenue in your business. But is it making you the most profits?

The profit you receive from each of these service lines is as follows:

J: $80K
K: $10K loss
L: $30K
Total: $100K

While Service J is generating the most profit volume for your business, it’s actually Service L that’s the most profitable. Earning $80K on $700K yields 11.4% return on Service J, but earning $30K on $150K yields nearly double the return at 20%. Service L generates the most return. And if possible, Service K may need to be discontinued or turned around.

Optimizing Profits

Your strategy for a more optimum revenue mix might be to sell as much of Service L as possible, while eliminating or fixing the problem around Service K.

It’s fun to experiment with different revenue mixes. And of course, there are many more variables besides profit, such as:

What services/products do you prefer to work on/sell?
Are you able to sell more of the most profitable service or are there marketing limitations?
Is one service a loss leader for the others?
Are you able to adjust price on the lower margin services to increase your profits?

There are many more questions to ask and strategies to consider to make you more money, which is why we love being accountants.

A New Mix

We hope you’ll spend some time analyzing your revenue mix and having fun asking yourself “what if?” If we can help you expedite the process or add our perspective, please reach out anytime.