As a mortgage broker in Canada, you’ve probably asked yourself at least one of the following questions:
How can I automate admin tasks so that I can focus on my business?
Is there something out there that can do all my accounting for me?
How can I save taxes?
Being a mortgage broker, your main job is to find the best mortgage product for your clients. This task alone can already be time consuming and may spread you thin on other aspects of your business, such as keeping your finances in check. While outsourcing everything to an accountant at year-end can seem like a simple solution, you will miss out on key information to make informed business decisions on a daily basis.
So what can you do differently without having to spend time becoming an accounting expert?
We created this guide for all mortgage brokers in Canada to better understand the benefits of accounting software, how to automate accounting tasks, and focus on your main line of work which is getting the best mortgage product for your client’s needs.
Table of Contents
Common expenses for mortgage brokers
We know how busy the life of a mortgage broker is with your mornings being spent on catching up on emails and any urgent tasks, checking the news for any real estate and financial developments, dealing with a client’s real estate agents and then going out to evening meetings with prospective clients since most prospects like to meet after working hours. Add on family time, errands to run, and you have a jam-packed day. Alongside all of that, now you have to keep track of your accounting. But you’re not an accountant!
Let’s start with the basics. You're incorporated or self-employed and have multiple expenses to track. Rent, supplies, payroll, utilities, marketing, administration fees, property taxes, annual license fees, educational expenses to upskill yourself and you employees, interest expenses, bank charges, any charitable donations your corporation makes, and many more additional expenses. After all that, now you have to keep track of your assets including but not limited to computers, your vehicle, furniture, phones, and more. Evidently, keeping track of all those expenses and assets along with your already busy job is nothing short of mundane, tedious, and honestly, a waste of your valuable time.
So how do you solve this common, important problem? The first step is to use a simple accounting software that connects to your business bank account and automatically categorizes business transactions. If you think this kind of software is expensive or doesn’t work, you’ll be in for a surprise. Automated accounting software exists, it works wonders and is very effective at categorizing transactions in real-time.
How a mortgage broker can benefit from using accounting software
Utilizing an accounting software means that you as an entrepreneur won’t have to spend countless hours doing mundane tasks, so you can focus on other important areas of your business. In this section, we go over how you can maximize the benefits from using an accounting software as a busy, high-achieving mortgage broker.
Save time gathering information
Every business has accounting tasks to complete, whether this is bookkeeping, sales tax filing, income tax returns or financial statement preparations. With the help of an automated accounting software, a lot of time and money can be saved. Bookkeeping becomes a breeze when using an accounting software thanks to automated categorization. You can even send out invoices straight from the software and have everything reconciled automatically. Keeping track of all your mortgage broker revenues and commissions will have never been quicker.
Real-time insights
Accounting software often includes advanced features such as real-time reporting, dashboards, and data visualization tools that can help you quickly and easily see financial data in an actionable format. For example, real-time reporting capabilities in accounting software can provide real-time insights into your business's financial performance, allowing you to make informed decisions quickly. Dashboards and data visualization tools help see the key performance indicators (KPIs) that matter most, such as cash flow, sales, expenses, and profit margins. This enables you to identify trends and patterns, spot potential issues, and make informed decisions about where to allocate resources.
Access your information anywhere securely
While you focus on being the best mortgage broker you can be, you can rest assured that all your accounting information is stored safely and securely in the cloud. With an internet connection, you can analyze your business's financial performance on your phone, laptop, or tablet. Additionally, any updates that occur to the accounting software will automatically be updated on your account, so you always have the latest version of the software.
Eliminate accounting errors
How many times have you tried to do a task after work, when all your willpower and energy is used up? But because you know how important this task is, you do it anyway. However, you know you cannot do it to the best of your ability! When it comes to accounting, errors can cause big problems and can really hurt your brokerage anywhere from mismanaging payroll to getting in trouble with the Canada Revenue Agency (CRA) or Revenu Quebec for Quebec businesses. That’s why it’s best to use accounting software that manages your financials and reporting. Accounting software allows for increased accuracy as they reduce/eliminate human errors. In addition, great accounting software are always kept up to date with the latest rules and regulations, something even the best CPAs might not always be able to do.
Reduced costs
Costs associated with hiring an accountant for your brokerage are high, especially when you’re just starting out. You can also outsource everything to an external accountant but you’ll be dealing with someone who will likely spend a few hours at most during year-end to power through your tax return as quickly as possible. Well that sucks.. Instead, you can start with a free or low-cost accounting software and later upgrade to a higher cost plan as your brokerage scales in size, so you’re never paying more than you have to.
Why ReInvestWealth’s free accounting software is a good choice for incorporated mortgage brokers
Accounting software has been mentioned left, right, and center in this article, but now comes the hard part: which one should you choose for your mortgage brokerage? With a lot of competition in the market, ReInvestWealth is among the most innovative free accounting software for a mortgage broker in Canada.
It's completely free to use
ReInvestWealth’s accounting software is completely free to use and will do most of the grunt work when it comes to your business's accounting. The base free plan offers unlimited bank connections, unlimited automation formulas, personalized recommendations, a real-time cash flow dashboard, automatic invoice reconciliation, sales tax reconciliation (and filing coming soon) and more. You can create your free account and try it out today.
Real-time automated accounting software
With real-time bookkeeping, a push of a button allows you to see key financial information about your brokerage. ReInvestWealth’s software is on the cloud, and as previously discussed, the cloud has many benefits including being able to access real-time data anytime anywhere, along with high-level security, and all of this as long as you have an internet connection. Mind-numbing reconciliations like invoicing, receivable, income statements and balance sheets are made super easy with ReInvestWealth. Additionally, ReInvestWealth allows you to track upcoming deadlines when it comes to submitting your accounting reports. As a busy mortgage broker, this for sure comes in handy when the last thing you need is the government charging you penalties and interest for outstanding tax returns.
Professional Support
ReInvestWealth comes with a variety of ugradable accounting plans for all your brokerage needs, so no matter what stage your brokerage is at, ReInvestWealth can always be your accounting best-friend. When you’re just starting out, you most likely don’t need many features such as payroll or compilation reports. As mentioned, ReInvestWealth’s free accounting software comes with unlimited bank connections, automated bookkeeping, a financial dashboard, proactive recommendations, an income tax estimator, and a sales tax tracker. If you’re looking for more, such as tax returns, payroll or compilation reports, a ReInvestWealth accounting plan could be a great option.
Scaling with your business
As a business owner, your main priority is likely scaling your business. But as you know, daily tasks continuously increase in both size and time as your brokerage grows. One of the tasks that becomes increasingly tedious as your brokerage grows is keeping track of your finances. Automating your accounting will help bring value through real-time insights and tax optimizations. ReInvestWealth can take the accounting weight off your soldiers, so you can focus daily energy on increasing the size of your brokerage. ReInvestWealth is designed to handle the day to day accounting of a mortgage broker whether you're just starting your business or growing quickly.
Security
Security is at the top of your list when deciding between an accounting software. That’s why ReInvestWealth’s accounting software protects your credentials and data using server-side encryption and client-side secure authentication, meaning your data is truly safe at all times. With this, no third-party can access your information as it’s encrypted and only accessible by authorized users.
Conclusion
Now that you've learned about the benefits of using accounting software, you'll be able to manage your business like a boss. For more information about accounting and business finances, there are several other free resources provided on ReInvestWealth. You can also set up a free consultation with one of our financial experts, for more personalized advice. And don't forget to create your free account today.
Written by Mankaran Rooprai
Edited by Behdad Karimi Dermeni, CPA