Real Estate Accounting Services
Real estate accounting is complex and detailed due to understandable reasons. In the entire world, the real estate industry has proved to be one of the major direct economy contributors. As real estate owners, you enjoy the repute of massive GDP growth initiators, but is the journey easy? Definitely not!
You face constant difficulty to:
- Reduce your operating and capital expenditure,
- Strengthen your cash flows,
- Increase your profitability,
- Combat with tough market competition,
- And above all MANAGE YOUR ACCOUNTING AND BOOKKEEPING
You need an accounting service provider who provides client-focused services, understands typical real estate finance problems and proposes hassle-free accounting solutions. If you can find such a service provider, then the benefits of outsourcing real estate accounting are unimaginable.
WE AT PUSH DIGITS Chartered Accountants have a long history of handling real estate accounting accurately and reliably, ensuring real estate agents and companies achieve their set goals and business objectives, because
‘While you manage your real estate side of the business we work at making the accounting side easier.’
Why the Real-Estate Industry Needs Accurate Accounting?
As a real estate company, you focus on your core competency, that is, Real Estate Management & Growth. But little do you know that the profitability of your real estate company is directly linked to organized, timely, and completed accounting.
Are you one of those real-estate owners who is facing the following problems?
- Difficulty in comparing growth, from year to year,
- Unable to track key performance indicators like profit/loss, cash flows, net worth,
- Facing cash mismanagement,
- Unable to analyse rental properties upon performance,
- Facing the difficulty of timely tax returns,
- Unable to claim legitimate tax deductions,
- Constantly facing extra time and distress during audits from tax authorities,
- Unable to pay bills or clear financial obligations on time,
- Not able to use past performance data to raise capital from lenders and partners,
- Your accountants are constantly giving wrong information,
- And further, you’re unable to know with surety whether your business strategies are succeeding or not!
To tackle all these problems, your only effective plan of attack can be… proper accounting and bookkeeping of your business.
You need an Accounting firm that can help you manage:
- Complex tax structures,
- Local tax issues,
- Accurate property valuations,
- Offer effective financing alternatives for every kind of asset,
- Accurate depreciation of properties,
- Develop arrangements for joint ventures,
- Assist in property acquisition or disposals,
- Manage your overall accounting,
- And propose correct treatments as per International Accounting Standards and International Financial Reporting Standards
We can help you improve the operational efficiency of your Real Estate Company through tailor-made solutions and in-depth knowledge and experience of real estate accounting from any region of the world.
What Will We Cover in the Real Estate Accounting?
For decades we have assisted real estate business owners to elevate their company through effective accounting and financial management. With our multi-domain industry experience, accounts setup to high level financial reporting is a norm for us. The main components of our services are briefed below:
- Scratch to End Accounting
- Setting up a chart of accounts with accurate real estate properties categorization,
- Setting-up of bank accounts and bank details,
- Proper record keeping of sales, rentals, expenses, and other transactions, through the real estate accounting software,
- Recording invoices & bills,
- Recording of receipts from tenants,
- Recording of invoices from suppliers,
- Recording and categorization of payments to suppliers,
- Processing of payroll,
- Electronic payment voucher system,
- Move-in and Move-out accounting process,
- Calculation and recording of depreciation of assets as per IAS 16
- Proposition and recording of adjusting entries,
- Project-related costs segregation and allocation,
- Month-end/year-end closing reconciliations,
- Effective valuation and recording of properties,
- Class-wise transaction recording,
- Property-wise transaction recording,
- Inter of intra-company transaction processing.
- On-time monthly commission preparation & processing at the cut-off period,
- Fair Value/carrying value evaluation as per the International Accounting Standards,
- Generation of property-wise profit and loss statements,
- Monthly property-wise revenue and expenditure,
- Property-wise comparison of costs and revenue,
- Generation of detailed property-wise schedule for comparison,
- Market segmentation for profitable market evaluation,
- Commission-splitting into the appropriate segments, including:
- Property management;
- Holiday rentals etc.
- Recording of accruals and prepayments,
- Transaction recording for other advances and liabilities based on management reporting,
- Accurate recording of Employees Payroll in accounting software,
- Deliver a comprehensive Executive Summary of Payroll for Management approval, each period,
- Capitalization of fixed and intangible assets,
- Calculating and recording depreciation/amortizationof goods & equipment,
- General Ledger maintenance per Company’s Chart of Accounts,
- Partial and a full reconciliation of bank and credit card transactions,
- Passbook and cashbook reconciliations,
- Vendor invoice reconciliation with ledger entries,
- Credit card reconciliation with bank records
- Bank and mortgage reconciliations,
- Asset-wise/equipment-wise ledger preparation,
- Interim of annual profit and loss preparation,
- Interim or annual balance sheet preparation,
- Cash flow statements generation,
- Management and development of total quantity management system,
- Any other related accounting & bookkeeping tasks.
- Implementation of Accounting and CRM Software
- Suggestion of best, most appropriate and, cost-effective accounting and CRM software for real estate business,
- Implementation and set-up of more sophisticated singe software to serve as CRM as well as accounting software,
- Assistance in conversion from one accounting software to another,
- Implementation and set-up of software based on company-specific requirements,
- Descriptive layout set-up for invoices, reports, quotes, emails, users, suppliers and organization details,
- Transaction recording in a centralized location,
- Customized templates for management reporting (monthly, quarterly, annually),
- Training on using the accounting and ERP software
- Tax Compliance
- Correct calculation of tax liability,
- Calculation of accurate
- Income Tax,
- Corporation Tax,
- Value Added Tax (VAT),
- Capital Gains Tax (CGT),
- Inheritance Tax (IHT)
- Stamp Duty Land Tax (SDLT),
- Other country-specific taxes
- Taking account of tax deductions allowed,
- Timely tax returns filing to avoid fines and penalties,
- Tax report generation for filing with Federal Tax Authorities,
- Accounting system customization for automatic reconciliation with Federal Tax Authority
Our customized reporting will give you quick and efficient insights about every aspect of your business. You want customised reporting, too, such as reports of cost per agent, cost per seat, cost per deal, and so much more.
Following is the brief list of reports we provide to our real estate clients:
- Property Report – comprehensive background research report of any property you might choose to purchase, hence helping you in decision making,
- Mini Property Report – a compact version of the property report consisting of 10 to 12 pages of details of a particular property you want to purchase,
- Seller’s Report – report used to help prepare and assist in the listing of property,
- Market Activity Report – market survey report having detailed examination of a local or international real estate market,
- Neighborhood Report – detailed evaluation of neighboring real estate for particular geography helping in the potential purchase decision,
- Property Valuation Report – in-depth and accurate valuation of individual properties for accurate treatments,
- Type-wise or Location-wise Assets Reports – to analyse location-wise or asset type-wise performance,
- Per Area Revenue Report – for you to evaluate the most profitable and revenue generation real estate areas,
- Profitability Comparison Reports – weekly/monthly/yearly comparison of profit and loss depending on the requirement,
Other General Reports:
- Payroll Registers,
- Fixed asset depreciation schedules,
- Inventory reports,
- Bank reconciliation reports,
- Risk assessment reports,
- Property-wise general ledger reports,
- Property-wise sales report,
- Overall cash in hand report,
- Detailed property-wise agents’ commissions reports,
- Monthly review reports on systems and procedures implemented
Why Push Digits Chartered Accountants?
We are one of the very few Accountancy Firms, along with big 4, who provide customized real estate accounting solutions. Our real estate client family includes:
- Property companies,
- Service providers,
- Construction companies,
- Engineering companies,
- Individual estate owners
- Owners associations
Strategic Reasons to appoint Push Digits Chartered Accountants:
- 10+ years of vital experience in handling Real Estate Accounting,
- 3000+ versatile portfolio of clients,
- 20+ years of efficient auditing of real estate companies,
- 20+ years at handling complex local and international taxation issues,
- In-depth experience of highly sophisticated accounting and ERP systems,
- Regular in-house training of staff ensuring up-to-date ethical and professional development,
- Close collaboration of Accounting/Auditing/Tax partners with clients to ensure quality service,
- Team of highly skilled Qualified Chartered Certified Accountants, Chartered Accountants, Certified Fraud Examiners, Certified Bookkeepers, Certified Public Accountants,
- Big 4 accounting and audit managers to supervise your assignment,
- Dynamic all around the clock customer support from internationally recognized Audit/Accounting/Tax Partners.
Operational Reasons to appoint Push Digits Chartered Accountants:
- Data Security: We work on strict confidentiality agreements and workstation data security policies to ensure your valuable data is safe at all times. Nothing in our custody has ever been lost.
- Latest Technology: Our accountants and auditors latest technologies and systems to ensure accuracy and completeness in the bookkeeping e.g auto bank reconciliation via MT-940 bank statements.
- Rapid Turnover Time: Our services are not only efficient but delivered swiftly through state-of-the-art infrastructure.
- Tax Expertise: It is never easy to make tax-efficient property investments. Our tax consultants will help you:
- Choose the best tax structures,
- Understand the tax implications on properties,
- Take advantage of legally allowable tax deductions as per the applicable regulations,
- Assist in timely taxation filing to avoid penalties.
- Business Analysis: Bookkeeping is not just a service to record transactions, but a vital source to measure the overall performance of your company. Our financial services will help you track, review, and battle the financial health of your company on a weekly/monthly/annual basis through property-wise detailed financial analysis.
- Cash Flow Analysis: We will continuously analyse your cashflow in order to take required steps to control cash. We will also help you identify most cash-generating properties so that you can plan your next investments.
- Employee Training: We will not only handle your financial matters but will also train your employees so that they can handle basic bookkeeping themselves while we supervise them. This will save you some extra bucks.
- Legal Obligations: Every country has strict rules and regulations for real estate businesses. In whichever country we are providing real estate accounting services, we ensure to educate ourselves with the relevant real estate laws of that country so that the compliance is not compromised.
- Hassle Free Financial Audit: Audit seasons, if not handled carefully can cause not only distress but could result in disruption of your company’s operations. We will help you throughout the audit season and ensure easy and effective audit completion within one month of the financial year-end.
Least to say WE are approachable, well-experienced, skilled, highly flexible to your needs and above all ON YOUR SIDE, to make your accounting proper and your business life easier!
The fee we charge will be just a fraction of what your accounts department is taking right now, and even then, we offer friendly negotiations.
You can choose from any of the following or else we can discuss and prepare a customized proposal based on your requirements:
- Pay weekly,
- Pay daily,
- Pay monthly,
- Pay Hourly,
- Pay one-off
Top 10 Frequently Asked Questions (FAQs):
1. Where is the bookkeeping and accounting done?
Our services will be provided as per your needs. After a detailed discussion with your company’s management, we will advise which solution will suit your company’s culture best. Whether we provide services at your premises or from our own office, the responsible accountant will be available to assist you round the clock.
2. Can we actually save cost by outsourcing bookkeeping of our Real Estate Company?
Real Estate accounting is not just any other accounting. Management of commercial and residential properties, applying accurate financial treatment and complying with all the regulations that affect your business is a fairly complex task.
Outsourcing will benefit you in the following ways:
- Assistance in handling complicated financial issues,
- Saving of additional costs of employees compensation and insurances,
- Quick completion of audits,
- Compliance with laws and regulations,
- On time tax returns
- Error-free transaction recording,
- Support and advice on business strategy and valuation
3. What will your Real Estate Bookkeeper do?
Bookkeeping services will involve initial accounts set-up and on-going recording of your business transactions. We will also review your ledger on a monthly/quarterly basis so that you can keep an eye on the financial health and financial performance of your company.
4. Does bookkeeping only include recording of transactions?
Transaction recording is just a part of bookkeeping. In reality, bookkeeping is a detailed management and the valuation method. It helps you analyze the performance of different departments and includes the following:
- Summarizing and interpreting income and expenses,
- Production of meaningful insights and valuable reports,
- Helping in strategic decision making,
- Proposing accurate accounting treatments,
- Analyzing and evaluating financial information,
- And many more.
5. How do you charge for services?
We offer our clients to pay for the type of bookkeeping their company needs. Whether you are looking for:
- One-off service – initial set-up of your accounts, this includes onetime payment
- Express service – services to assist in avoiding penalties and fines or professionally handle a tight deadline, this will follow a onetime payment pattern
- Regular support – to completely take the management of your books, this follows a monthly payments/pay as you go package
- Customized support as per individual client’s needs.
Choose what best suits you.
6. Will I need a bookkeeper even if I already have an accountant?
Not necessarily if you have a small company. However, if your company size is big then you need bookkeeper as well as an accountant.
7. Which accounting software does PUSH DIGITS support for the real estate industry?
We work with every kind of accounting software invented to date. We are expert at handling all your financial issues no matter what software your company uses. Whether you use separate CRM and accounting software or a single software for both accounting and CRM purpose, we can work both ways with accuracy and excellence.
8. Will I need separate assistance during audits and taxation?
We will not only manage your books but your audit and taxation matters too. Our accountants will work with external auditors and complete the audits within one month of the financial year end. Similarly, any tax audits by the regulator will also be handled by our team.
9. Will your bookkeeper or accountant provide advice on business strategies?
Definitely yes. Apart from managing your books and address any financial issues, we will also give you valuable insights about the performance of your company and help you devise strategies for your business growth.
10. What if we are not happy with your accountant?
This does not happen normally. Yet, for some reason, if you feel unsatisfied we will replace the accountant.