CPAs, certified public accountants, are one of the trusted advisors you can have in your circle. You can rely on them year-round — not just during tax season — to help manage your luxury real estate business, as well as understand how your clients with complex income make their financial decisions. So when it comes to the question of: “Do I need a CPA,” we at Supreme Auctions give a resounding “yes!”
A Certified Public Accountant (CPA) is an accounting professional. CPAs are sought out for their reliability, industry knowledge and credentials.
In addition to keeping and interpreting financial records, CPAs are able to perform other services, such as:
- Auditing and review
- Tax preparation and consulting
- Consulting services
- Financial planning
- Litigation consulting
- Working with complex income
What Is “Complex Income”
Complex income refers to non-traditional income such as revenue streams that come from equity, bonuses and commissions, taxes in multiple states or territories, and more. This type of income often needs a specialized tax professional to help maximize their income and manage their taxes year-round. Complex income also comes into play when taking out a mortgage, it is important for luxury real estate professionals to understand their clients’ best options.
Three Reasons Why a CPA is an Asset
If you do not have a tax professional who deals with financial complexities in your luxury real estate network yet, here are three good reasons to seek one out:
#1: Your Clients’ CPAs Are Influencing Their Real Estate Decisions
Your client likely has a CPA helping manage their finances and minimize risk, which includes making decisions on whether to purchase, sell, or remain in their luxury home.
#2: CPAs Offer a Better Understanding of Client Needs
With that in mind, having an experienced CPA in your luxury network who can help you understand your client’s perspective makes sense. They can keep you up-to-date on tax laws and how those are influencing how the affluent markets buy and sell luxury homes, as well as help you understand what your client is looking for, in terms of mortgages, down payments, purchasing luxury property at auction, and so much more. A CPA acts in your best interest to help your business understand that a client may not buy a new home and take advantage of low mortgage rates if they have a better mortgage deal.
#3: CPAs Can Expand Your Own Network
A CPA does more than crunch numbers all day. They network to expand their sphere of influence and clientele. Most CPAs with high-net worth clients are connected to other industry professionals, private bankers, and estate planning attorneys as well. All of these specialists share similar clientele with luxury real estate professionals, which your CPA should have no trouble locating when they are out networking as well.
Referring A CPA Can Add Value To Your Clients’ Experience
At Supreme Auctions, our services go beyond luxury home auctions. We work with our clients — buyers, sellers, or agents throughout every step of the way to make the process as easy and transparent as possible. Part of this is having the ability to offer resources to our clients that include CPAs.
While many of our clientele already have a CPA, it is not guaranteed. You also never know when they may ask for a second opinion or a referral, so it is best to be prepared. Being able to recommend a vetted and experienced tax professional can help raise the client’s perceived value of your business — you are showing them your competence by recommending someone who will make their experience even easier.
So Ask Yourself, “Do I Have a Need for a CPA in My Luxury Home Network?”
A CPA can add so much value — both real and perceived — to your business if you have a reputable accountant on your team. Not only will they help you understand the financial decisions of your clientele, they will also help your clients feel more secure in their decision of choosing you.
If you are considering working with a luxury real estate auction company with resources to esteemed CPAs, contact us at 888-660-6456 or visit us online. We would be happy to help and connect you.