5 Reasons to outsource your client accounting

18 April 2023 5984 Views

As a dedicated letting agent, or estate agent with a lettings portfolio, you already have a lot on your plate. Managing properties, dealing with tenants, and handling day-to-day operations can take up a significant portion of your time. One crucial aspect that you cannot afford to neglect is client accounting.

Client accounting is a specialised type of accounting that deals with the management of funds held on behalf of clients. This includes rent, deposits, and other client monies. As a professional agent, you are responsible for managing client funds in a way that is compliant with industry regulations; that's why many agents are turning to client accounting service providers (CASPs) to handle this aspect of their business

In this blog post, we'll explore the benefits of outsourcing client accounting to a CASP as we highlight the top 5 reasons why you should consider this option.

1. Expertise and Experience

Client accounting can be complicated and time-consuming. It requires a high level of accuracy and attention to detail to ensure that your clients' funds are managed properly.  CASPs are dedicated professionals with expertise in managing client money for letting and estate agents. They have the necessary knowledge and training to ensure that your clients' funds are managed according to industry standards and regulations.

A CASP will handle all aspects of client accounting, from paying landlords and settling contractor invoices to registering deposits and reconciling accounts.

2. Compliance and Risk Management

Compliance is a critical aspect of client accounting. Agents are required to comply with various legal regulations when managing client funds. Failure to comply can result in serious consequences, including fines and legal action.

By outsourcing your client accounting to a CASP, you can ensure that you are compliant with all industry regulations and guidelines. CASPs have a thorough understanding of the regulatory environment and can manage your clients' funds in a way that minimises risk

By outsourcing your client accounting to a CASP, you can rest assured that your records are accurate and up-to-date, giving you peace of mind and allowing you to focus on your core business.

3. Time and Cost Saving

Outsourcing your client accounting can help you reduce costs by eliminating the need to hire and train additional staff or invest in expensive accounting software. A CASP can provide you with a cost-effective solution that meets your specific needs, saving you money on overheads and allowing you to increase your profitability. This will free up your time and resources, allowing you to focus on other aspects of your business.  You also don't have to worry about sickness, holidays or staff leaving!

4. Enhanced client satisfaction

Letting agents who outsource their client accounting to a CASP are able to provide better customer service to their landlords.

By delegating this aspect of their business to a dedicated client accounting specialist, agents can ensure that their landlords are paid on time and that their landlords' financial transactions are handled with greater accuracy, transparency and efficiency. The agent can then focus on tenant management and property maintenance, resulting in a more streamlined and professional service overall and hopefully leading to long-term relationships and repeat business.

5. Scalability

As your business grows, managing client accounting in-house can become more challenging. You may need to hire additional staff, invest in new software, or upgrade your infrastructure. By outsourcing this function to a CASP, you can scale your business without worrying about these challenges.

A CASP can handle all aspects of client accounting, regardless of the size of your business.

What makes The Letting Partnership your CASP of Choice

The Letting Partnership is a specialist CASP providing outsourced client accounting services and support to agents throughout the UK.

They do everything that you would expect from a CASP, but their main USP is that they are powered by people - not technology. Member agents are assigned their own account manager who works on the agent’s own existing software, so there is no need for change or upheaval. Their account manager is on hand to help with any queries that arise and is fully conversant with the agent’s software.

The Letting Partnership is also able to open a designated ring-fenced client account on behalf of the agent.

The Letting Partnership is recognised as one of the few CASPs accepted by CMP providers and is a Propertymark Industry Supplier. Winners of The Negotiator ‘Supplier of the Year 2022’, they also received the prestigious Queen’s Award for Innovation for their Client Money HealthCheck service.

If you are experiencing problems opening or keeping your client account or are considering outsourcing your client accounting then give The Letting Partnership a call on 01903 477900 or visit their website.