Adrian JohnsonTLDR:
- AccountTECH conducted a study and found an 80% reduction in Real Estate brokerage labor costs through outsourcing accounting services.
- The study showed that the labor cost per agent per month varied based on the number of agents in each brokerage, with larger companies experiencing lower labor costs per agent.
Key Elements of the Article:
AccountTECH, a provider of accounting software for the real estate industry, conducted a survey on the outsourcing of accounting services for real estate brokerages. The study aimed to assess the costs associated with outsourcing accounting work and the potential savings for brokerages. The findings revealed several key elements:
- The average labor cost per agent per month in real estate brokerages was $461.99 for the first six months of 2024, including all staff, managers, and executives.
- The study indicated that larger brokerages experienced lower labor costs per agent, with costs decreasing as companies grew in size until exceeding 100 agents.
- When outsourced accounting services were provided to real estate brokerages, the prices were based on the agent count, with larger companies generally paying lower costs per agent.
- AccountTECH’s survey found that the average price of outsourced accounting labor per agent per month ranged from $157.64 for companies with 0-10 agents to $5.66 for companies with 500+ agents.
- The study highlighted the challenges brokerages face with fixed labor costs and recommended outsourcing as a solution to improve EBITDA margins.
Analysis of the Study:
The study’s results underscore the potential cost-saving benefits of outsourcing accounting services for real estate brokerages. By reducing labor costs through outsourcing, companies can improve their financial performance and increase profitability. The findings suggest that as brokerages grow in size, outsourcing accounting functions can lead to significant efficiency gains and operational improvements. AccountTECH’s focus on providing tools and solutions for real estate accounting underscores the importance of leveraging technology and outsourcing to enhance business operations and drive success in the industry.
