Managing an in-house real estate accounting team might seem like the most straightforward approach, but many firms overlook the hidden costs involved. Beyond salaries and benefits, expenses such as employee training, software licenses, office space, and turnover can quickly add up—draining valuable resources. In addition, in-house teams often struggle with staffing shortages and evolving compliance requirements, leading to inefficiencies and delays. As the real estate industry grows more complex, firms are increasingly turning to offshore solutions to cut these costs while maintaining high-quality accounting standards. This blog explores the often-unseen expenses of in-house accounting and reveals how offshore accounting benefits can provide a strategic and cost-effective alternative for real estate firms in 2025.

Breaking Down the Real Estate Accounting Cost

When considering the true real estate accounting cost, it’s essential to look beyond just employee salaries. Hiring skilled accountants in the US often comes with high salaries, benefits, and bonuses that can strain budgets. However, these direct costs are only part of the equation.

Overhead expenses such as office space, utility bills, accounting software licenses, and ongoing training add significantly to the total. Real estate firms also face hidden costs linked to employee turnover and the time required to onboard new staff, which disrupts workflow and decreases productivity.

Additionally, in-house teams may struggle with errors or delayed reporting due to workload or skill gaps, resulting in costly compliance issues or missed opportunities. Together, these factors make in-house accounting more expensive than many firms realize.

By understanding these costs, real estate companies can better evaluate the benefits of outsourcing or offshoring accounting functions to specialized partners who provide cost-effective, high-quality services.

Common Challenges of In-House Real Estate Accounting

Managing an in-house accounting team comes with a unique set of challenges that often go unnoticed until they impact business performance.

Staffing shortages and skill gaps are frequent problems, especially in niche areas like real estate accounting where specialized knowledge of property management, lease structures, and regulatory compliance is essential. Finding and retaining qualified accountants who understand these complexities can be difficult and costly.

Moreover, keeping pace with constantly evolving accounting standards and compliance requirements demands continuous training and adaptation. In-house teams may struggle to stay updated, increasing the risk of errors or non-compliance.

Operational inefficiencies also arise from lengthy month-end closes and delayed financial reporting, which can hamper timely decision-making. These delays often stem from manual processes, lack of automation, or simply insufficient staffing during peak periods.

Taken together, these challenges increase the hidden costs of maintaining an in-house team, impacting accuracy, speed, and ultimately, the bottom line.

How Offshore Accounting Benefits Real Estate Firms

As the hidden costs and challenges of in-house real estate accounting mount, many firms are turning to offshore solutions to optimize efficiency and reduce expenses. Offshore accounting benefits extend far beyond mere cost savings—they provide access to specialized talent, scalability, and process improvements that can transform financial operations.

Cost Savings Without Compromising Quality

One of the biggest advantages of offshore accounting is the significant reduction in labor and overhead costs. Firms can typically save 50–70% compared to maintaining an in-house team in the US. These savings come without sacrificing the quality or accuracy of work, as offshore teams often consist of highly trained professionals experienced in real estate accounting standards and compliance.

Access to Skilled Specialists

Offshore partners bring deep expertise in real estate-specific accounting tasks, including property management accounting, lease administration, accounts receivable/payable, and regulatory reporting. Many providers invest heavily in continuous training to keep their teams up to date with the latest GAAP, IFRS, and local compliance requirements.

Flexibility and Scalability

Real estate firms experience fluctuating workloads throughout the year, especially during month-end closes, audits, or large transactions. Offshore accounting teams offer flexible resourcing options, allowing companies to scale support up or down based on demand without the delays and costs of hiring or layoffs.

Technology and Process Optimization

Top offshore providers use advanced accounting software, automation tools, and best practices to streamline workflows, reduce errors, and speed up reporting. Integration with client systems ensures seamless data flow and real-time financial insights.

By leveraging offshore accounting benefits, US real estate firms can enhance accuracy, improve operational efficiency, and free internal resources to focus on strategic growth initiatives.

Real-World Example: Cost Savings & Efficiency Gains

Gallagher & Mohan partnered with a leading affordable housing manager, one of the largest LIHTC and multifamily firms in the US, to optimize their financial operations across 32,000 units. The client faced challenges including efficient payment processing, accurate bank reconciliations, overdue invoice management, and timely financial reporting.

Our dedicated offshore team streamlined payment commitments, reconciled accounts monthly, and managed security deposits with precision. They also ensured proper fund allocation for property operations and handled complex reporting tasks such as subledger verification and month-end financial finalization.

The results were transformative: the client experienced improved efficiency, accurate and timely reports, enhanced cash flow management, and strengthened compliance. This partnership allowed them to scale operations seamlessly without compromising financial accuracy.

This example underscores how outsourcing financial functions to expert partners like Gallagher & Mohan can drive significant cost savings and operational gains for real estate firms. Download Case Study

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Steps to Successfully Transition to Offshore Real Estate Accounting

Transitioning to offshore real estate accounting requires careful planning to maximize benefits. Start by selecting a trusted partner with proven expertise in real estate financial processes and compliance standards. Clearly define your goals, workflows, and quality expectations upfront to ensure alignment.

Next, establish strong communication channels with dedicated points of contact and regular check-ins to maintain transparency and quick issue resolution. Invest time in onboarding and training to integrate offshore teams smoothly with your in-house staff and technology systems.

Finally, implement robust quality controls and performance metrics to monitor accuracy, efficiency, and compliance continuously. Following these steps will help you unlock the full potential of offshore accounting while minimizing risks.

Conclusion

In-house real estate accounting carries hidden costs and operational challenges that can limit growth and efficiency. Offshore accounting offers a compelling alternative, providing cost savings, specialized expertise, and scalable support tailored to your needs. By partnering with experienced providers like Gallagher & Mohan, real estate firms can optimize financial operations while focusing on core business priorities.

Interested in cutting costs and improving accuracy? Explore our Accounting Services today