As a real estate back office solutions provider who has been working with brokers for over twenty years, we see the same pattern every Fall. Brokers who have enjoyed a long run of success (let's call them "the planners") come to life and take action by evaluating their organization to see where they need to improve. The flipside is the struggling brokerages who are just barely scraping by (we'll call them the "the procrastinators") who don't make any changes or put in the work to evaluate where improvement is needed. These brokerages usually call after the first of the year with fires to put out and with no time to or plan to put them out.
Five Concepts that Could Help Your Brokerage if the Market Turns South
Topics: Profit Power, Real Estate Back Office Software, real estate financial reporting
Back Office software is more than just a tool to help calculate agent commissions and process transactions for your brokerage. It should also help Brokers make decisions based on real-time financial information. Timely and accurate data entry practices are vital components to maintaining a healthy business. A broker can only use and trust reports if they know the data entered is accurate and timely. To that end, the Cash Flow Projection report is one of the most critical reports a residential real estate broker has to help make sound financial decisions. With one report, a broker can identify the sales coming up for closing, sales with an estimated closing date that has passed, and the agents they need to contact to see if they can help a sale close.
The Cash Flow Projection report in Profit Power is the cumulation of years of feedback received from successful brokers. Savvy brokers realize that they can make intelligent business decisions with strong data entry practices and sophisticated software tools. Using the estimated closed date to determine what is closing in the next week, two weeks, three weeks, etc., allows a Broker to understand the flow of money they will be receiving over a period of time. Seeing open sales with an estimated closing date that has passed enables a broker to take action and step in when necessary to help a sale along. Using color coding quickly alerts a broker to the most critical pending sales that could use their attention. All of this vital information on one dynamic report is a must-have for any broker looking to maintain a profitable business. With the Cash Flow Projection report, a broker can have confidence in making investments into their business if the pending projections look healthy. If things are not looking good, it allows a broker to focus their energy to help drive future business.
Let's break down the Profit Power Cash Flow Projection report in some more detail.
Topics: Profit Power, Real Estate Back Office Software, real estate financial reporting