June 12, 2024
Pooja Loomba is a QuickBooks Certified ProAdvisor and CEO of PL Accounting Solutions
Pooja Loomba started her independent accounting practice in 2015 after working for a larger firm in New York. The entrepreneurial bug had hit – and she has never looked back.
In the ensuing nine years, Ms. Loomba’s PL Accounting Solutions firm has worked with hundreds of clients and helped them clean up their inaccurate accounting and maintain a kosher set of books.
“I helped them save plenty of money in taxes, since accuracy of taxes depends upon accurate bookkeeping,” Ms. Loomba said from her New York base. “All of our work is done by our U.S.-based team only. None of the work is sent offshore. And we are accessible.”
Ms. Loomba is now looking to grow her accounting advisory service further as financial reporting, software and compliance regulations only grow more complex.
In this deep-dive conversation on the state of American accounting in the legal, real estate and luxury sectors – PL Accounting Solutions’ core focus – Ms. Loomba expounds on the intricacies of financial reporting across different industries. She also highlights how the complexities impact understanding of corporate profitability and performance.
Please read on:
What is the state of American accounting laws for professions such as legal, real estate, marketing, medical and media?
American accounting laws, particularly those governed by Generally Accepted Accounting Principles (GAAP), are intricate and constantly evolving to address the complexities of various industries.
For example, the Financial Accounting Standards Board (FASB) has issued over 170 updates to GAAP since its inception, covering areas such as revenue recognition, lease accounting and financial instruments. These updates can significantly impact financial reporting and compliance requirements for businesses in the legal, real estate-related services and many others.
The pressure on business owners to stay up to date with these laws is immense. Each industry faces unique regulatory requirements.
For instance, lawyers must manage client funds with meticulous accuracy to avoid ethical violations and potential legal repercussions.
Additionally, law firms must ensure that all billable hours and expenses are accurately tracked and reported to maintain financial integrity and client trust, while architects and contractors need to comply with need for project costing and regulations related to revenue recognition.
If we talk about the marketing and media industry, business owners are faced with revenue recognition problems, and the medical industry has to deal with HIPPA compliance.
The complexity is compounded by the frequent updates in accounting software, which are essential to ensure compliance with the latest standards but can be challenging to keep up with.
QuickBooks and other accounting software platforms receive regular updates that integrate new regulations and improve functionality, but staying current with these changes requires significant time and effort.
For business owners, this creates a significant pain point.
If they spend too much time trying to stay updated with the latest accounting laws and software changes, they risk diverting their focus from core business activities. This can lead to missed opportunities for growth and innovation.
By leveraging expert accounting services, business owners can ensure compliance and accurate financial management without sacrificing their primary business goals.
My services help bridge this gap, providing up-to-date financial expertise and allowing business owners to concentrate on what they do best: growing their business and serving their clients.
You have identified major opportunities in the legal, real estate-related services and the luxury sectors for accounting advisory services. Why and how is that the case?
The legal, real estate-related services and luxury sectors present significant opportunities for accounting advisory services due to their complex financial structures and high transactional volumes.
In the legal sector, firms deal with trust accounts, billable hours and intricate compliance requirements, making precise financial management essential.
Real estate-related services, such as architects, interior designers, contractors, property management companies and senior living facilities, involve substantial project costs, varied revenue streams/profit centers and regulatory compliance, necessitating detailed financial tracking and strategic planning.
Luxury businesses, dealing with high-value transactions, multiple locations/entities and inventory management, need accurate financial oversight to maintain profitability and growth.
These sectors face unique challenges that can significantly impact their financial health, if not managed correctly.
My expertise in QuickBooks and comprehensive accounting allows me to provide tailored solutions that address these specific challenges.
By implementing streamlined financial processes, ensuring regulatory compliance and offering strategic financial advice, I help business owners in these sectors optimize their financial operations and achieve greater efficiency and profitability. They get their time back to work on their business instead of in their business.
As part of this relaunch, you picked these three industries, what is the common thread or issue that you have identified where your skills can help?
The common thread among the legal, real estate-related services and luxury sectors is the critical need for meticulous financial tracking, compliance with stringent regulations and strategic financial planning.
Each of these industries operates within a framework of complex regulations and financial intricacies that demand specialized knowledge and expertise.
Accurate financial records, insightful reporting and strategic advice are essential for these businesses to navigate their financial challenges effectively.
Each of these industries deals with revenue-recognition-timing issues, project profitability or profit-center contributions, which requires one to be precise.
My skills in QuickBooks and accounting are perfectly aligned to address these needs.
By providing precise financial management, compliance assistance and strategic planning, I help these businesses maintain financial health and make informed decisions. This not only ensures regulatory compliance but also enhances their ability to manage cash flow, control expenses and plan for future growth, thereby supporting their overall business objectives.
Prior to your relaunch, what type of sectors did you offer QuickBooks cleanup and accounting services?
Before the relaunch, my services were widely sought after in various sectors, including construction, healthcare, retail and other small businesses. These industries benefited significantly from my expertise in QuickBooks cleanup and accounting services, which helped streamline their financial processes and improve the accuracy of their financial reporting.
In construction, for instance, managing project costs and ensuring timely invoicing were critical areas where my services provided immense value.
In the healthcare sector, I assisted medical practices in managing their financial operations amidst complex insurance billing and regulatory requirements.
Retail businesses, dealing with high transaction volumes, inventory management and retail reporting based on 4-5-4 or 4-4-5 calendar, found my services indispensable in maintaining accurate financial records and optimizing their financial strategies.
My experience across these diverse sectors has equipped me with a comprehensive understanding of different business needs and challenges, which I now bring to my focus on the legal, real estate-related and luxury sectors.
What type of services do you specialize in?
I specialize in a wide range of accounting services, with a strong focus on QuickBooks cleanup fixing messy and inaccurate accounting, financial reporting, bookkeeping and controller services.
My services are designed to provide businesses with accurate and up-to-date financial information, enabling them to make informed decisions and achieve their financial goals.
In addition to these core services, I also offer advisory services that focus on financial strategy, cash flow management and compliance with industry-specific regulations.
My approach is holistic and tailored to the specific needs of each client.
For instance, in the legal sector, I provide specialized services such as trust account management and compliance reporting.
In real estate-related services, my offerings include project cost tracking, revenue stream management and compliance with industry regulations.
For luxury businesses, I focus on inventory management and profitability analysis.
By offering these specialized services, I help businesses streamline their financial operations, enhance their financial insights and achieve sustainable growth.
Let’s talk about each one of these sectors. Given this current environment, how should they manage their books and optimize their finances?
Legal sector: Law firms should prioritize trust funds' reconciliations and management. They should pay attention to accurate time tracking and billing to ensure they capture all billable hours and manage client accounts efficiently.
Leveraging technology – QuickBooks, CLIO or other apps – for invoicing and expense tracking can significantly reduce administrative burden and improve financial accuracy.
Regular financial statement reviews and strategic planning can help law firms navigate economic uncertainties and optimize their financial health.
Real estate-related services: Businesses such as architects, interior designers, contractors, property management companies and senior living facilities should focus on meticulous project cost tracking, timely accounts receivable collection and detailed financial reporting.
Utilizing specialized software to manage project finances, monitor expenses and generate comprehensive financial reports can enhance decision-making and operational efficiency.
Implementing cost control measures and optimizing financial strategies can further strengthen their financial position.
Luxury sector: Businesses in the luxury sector need to focus on effective inventory management, cost control and, many times, special reporting requirements 4-5-4 calendar reporting.
Implementing advanced financial tools to monitor sales trends, manage high-value transactions and analyze profitability can help optimize their financial performance.
Emphasizing financial planning and budgeting is crucial to navigate market volatility and ensure sustainable growth.
By maintaining accurate financial records and leveraging strategic insights, luxury businesses can enhance their operational efficiency and profitability.
Overall, realize the value of accurate accounting. It’s the base for tax planning and for future growth. Don’t ignore it and make sure that accounting is being done by qualified people only.
How do you differ from other accounting firms?
Our firm differentiates itself through a combination of deep industry specialization, personalized service and cutting-edge technology.
We focus specifically on the legal, real estate-related services and luxury sectors, understanding the unique financial challenges and regulatory requirements of these industries. This specialized knowledge allows us to provide tailored solutions that go beyond generic accounting services, addressing the specific needs of our clients in these fields.
Personalized service is at the core of our approach.
We take the time to understand each client's business, goals and pain points, offering customized strategies that align with their objectives.
Our clients benefit from direct access to experienced professionals who are dedicated to their success. This hands-on approach ensures that we deliver not just compliance and financial reporting, but also actionable insights and strategic advice that drive growth and efficiency.
Additionally, we leverage the latest in accounting technology, including advanced QuickBooks features and other financial software, to streamline processes and enhance accuracy.
We stay abreast of the latest updates and integrate them seamlessly into our clients' financial systems, reducing the administrative burden on their part. This commitment to innovation ensures that our clients benefit from the most efficient and effective accounting practices available, allowing them to focus on their core business activities.
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