Bookkeeping for Real Estate Industry
Monthly Bookkeeping, Payroll, Financial Statements or Tax returns for Property sector and Real estate business
Business Tax return filing by Certified
CPA / Enrolled Agent
(Starts at $350)
Accounting and Bookkeeping Services for Real Estate Industry
Accounting for Real Estate Industry: The real estate industry encompasses many aspects of a property, including advancement, evaluation, advertising, offering, renting, and administration of business, mechanical, private, and agrarian properties. This industry can change contingent upon national and nearby economies, in spite of the fact that it remains reliable as individuals dependably require homes and organizations dependably require office space. There are five main categories of real estate, which include residential, commercial, industrial, raw land, and special use.
Whether you run a real estate agency or manage properties for clients, accounting for the real estate industry can be complex. Accounting helps a lot in such situations since working in real estate means dealing with large sums of money regularly. Â
A lot of times, one house or office piece stays in similar hands for a considerable length of time or even decades, so sometimes it ends up being difficult to make sense of what the estate’s worth is in today’s time. That is the reason most real estate evaluations depend on gauges. Until the point where exchange happens, the genuine value is obscure. Therefore, accurate asset evaluation and the generation of financial statements and income statements are essential for accounting purposes. Taxes and other charges usually depend on the value.
Preparing financial records and evaluating assets
For any real estate industry, it is important to know how to analyze the financial statements of a firm effectively. There are various accounting methods that are used to prepare financial statements to value assets. Evaluating the assets is important as the company’s financial statements need to be reliable.
Calculating Development costs, Operational Costs, and Profits
With a real estate agency, some variables (including repair/advancement costs, and strategies for figuring influence–operational costs) become possibly the most important factor while representing benefits.
Creating Revenue and Expenditure Cycle Reports, Lease abstracts, Cash basis income statements and other budget-related items:
Return on investment cycle reports is an accounting term that indicates the percentage of money invested that is recouped after the deduction of associated costs. Accounting for other expenses on budget-related items is done in the long run. Accordingly, it is important to have updated income statements.
Payroll Control
Accounting for a real estate agency comes with payroll control which includes checking the payment of the same salary component twice, amount of salary components that contradict one another, payment of salaries to fictitious employees, granting salary raises at unreasonable intervals, paying salary component in an amount that is unreasonable, and so on.
Tracking of Property Sales and Acquisition Costs
Real estate accounting also involves tracking the sales and acquisition costs of properties. This includes recording the purchase price, closing costs, and any additional expenses incurred during the acquisition of a property. It is important to accurately track these costs in order to calculate the total cost of each property and determine the return on investment.
Tax Planning and Compliance
Real estate accounting involves tax planning and compliance with relevant tax laws and regulations. This includes understanding tax implications of property sales and acquisitions, depreciation of assets, and tax deductions that may be available to real estate businesses. Proper tax planning can help businesses minimize tax liability and optimize financial performance.
Auditing and Financial Reporting
Real estate accounting involves regular auditing and financial reporting to ensure compliance with accounting standards and regulations. Auditing is important to ensure accuracy and reliability of financial statements, while financial reporting is necessary to provide stakeholders with a clear understanding of the financial performance of the business.
Managing Cash Flow
Real estate accounting involves managing cash flow effectively, which is crucial for the success of any business. This includes forecasting cash flow, managing accounts receivable and payable, and ensuring that adequate funds are available to meet financial obligations. Effective cash flow management can help businesses avoid financial distress and maintain financial stability.
Here are some tips for efficient bookkeeping in the real estate industry
An accounting software can simplify your bookkeeping process by automating many tasks, such as invoicing, expense tracking, and bank reconciliation.
It’s important to track all your business expenses, including rent, utilities, property taxes, repairs and maintenance, and advertising expenses.This will help you to claim all the deductions you’re entitled to, and also help you to identify areas where you can cut costs.
Make sure to reconcile your bank statements regularly to ensure that your records match your bank’s records.
Keep your personal and business finances separate. This means opening a separate bank account and credit card for your business.
Make sure to keep accurate records of your rental income, including the amount, date received, and the name of the tenant. This will help you to accurately report your rental income and also track late payments.
Keep all your financial records, including invoices, receipts, and bank statements, in one place. This will make it easier to track your expenses and prepare your taxes at the end of the year.
Consider hiring a professional bookkeeper or accountant who specializes in the real estate industry. They can help you with complex accounting issues and ensure that your books are accurate and up-to-date.
The real estate sector can be broadly categorized into three categories:
- Residential: This category includes properties that are designed and intended for residential purposes, such as apartments, houses, condominiums, townhouses, and vacation homes.
- Commercial: This category includes properties that are used for commercial purposes, such as office buildings, retail spaces, hotels, warehouses, and industrial properties.
- Land: This category includes vacant land that may be used for development or investment purposes, such as building homes, commercial properties, or other real estate projects.
Here are some tips for efficient bookkeeping in the real estate industry:
- Establish a Chart of Accounts: Establishing a chart of accounts is a vital step for real estate accounting. It is a list of all the accounts that need to be tracked in order to measure the financial performance of the business. The chart of accounts should be set up in a way that accurately reflects the unique needs of the real estate business.
- Record Income: It is important to record all sources of income in a timely manner. Income can come from various sources like rent, lease payments, or other services. This information should be recorded accurately and promptly.
- Track Expenses: Real estate businesses have various expenses that need to be tracked, including property maintenance costs, insurance premiums, property taxes, and mortgage payments. Tracking these expenses can help identify areas where costs can be reduced.
- Monitor Cash Flow: Monitoring cash flow is essential for any business, and real estate is no exception. Cash flow analysis helps in understanding the inflow and outflow of cash from the business. It helps in determining how much cash is available to meet business expenses and how much cash is required to keep the business running.
- Perform Bank Reconciliations: Bank reconciliations are important to ensure that all transactions recorded in the business books match the bank statement. This helps in identifying any discrepancies between the two and rectifying them.
- Prepare Financial Statements: Financial statements provide a snapshot of the financial health of the business. It includes the income statement, balance sheet, and cash flow statement. These statements help in understanding the profitability, liquidity, and financial position of the business.
- Close the Books: Closing the books involves preparing the financial statements and ensuring that all accounts are reconciled. This helps in preparing the business for tax filings and audits
By following these basic accounting procedures, real estate businesses can have a better understanding of their financial performance and make informed decisions to improve profitability and efficiency.
What are the services offered to real estate by meru accounting?
These are the services offered to real estate by bookkeeping solutions providers:
- Bookkeeping for Real Estate Agents
- Bookkeeping for Real Estate Agents
- Bookkeeping Services for Real Estate Investors Â
- Bookkeeping Services for Real Estate Companies Â
- Property Management Bookkeeping Services Â
- Property Management Accounting Services Â
- Real Estate Accounting Services Â
- QuickBooks Bookkeeping Services
- Bank and Credit Card Reconciliation
- Virtual Bookkeeping Services
- Financial Reporting Services
- Real Estate Financial Write-up Services
Meru Accounting provides world-class services that cater to all the needs of cloud accounting and bookkeeping of your business.
We work on the best accounting software like Xero and Quickbooks, as well as add-ons that will make sure all your work is up-to-date.
Help you with switching from your traditional software to Xero and Quickbooks.
We also manage VAT, BAS, Sales Tax and Indirect taxes for you so you are always ready at the end of the financial year.
When you choose to outsource your accounting work with us, it benefits you in the following ways:
- 1. Cost-saving
- 2. Access to skilled and experienced professionals
- 3. Better management of books of accounts
- 4. Decreased chances of errors
- 5. Improve business efficiency
- 6. De-burdens in-office employee’s dependency
- 7. Better turnaround time
We work on virtual technologies like Team Viewer, Virtual Private Network (VPN) to share and access data from your system.
You have to share your accounting software login details.
Through that, we complete all of your work and update it on the cloud, so you can have access to your data from anywhere and at any time.
Software is not a barrier for us. Due to our strong and professional accounting knowledge, we can prepare your books in almost any of the accounting software.
Our experts are always all ears to listen to your queries regarding bookkeeping and accounting or our services. You can contact us anytime by visiting: Contact Us page.
We provide our bookkeeping services at the rate of US $10 per hour. So, you only need to pay for the amount of time actual work is done.
We take certain preventive measures to secure your data, like:
- Cyberoam Firewall to prevent any kind of foreign threat.
- Dual-step authentication
- Implement anti-virus
- Limit user access so that login details are with a few people.
Meru Accounting work on some of the best accounting software’s like:
- Xero
- Quickbooks
- Netsuite
- Saasu
- Wave
- Odoo
Along with that, we also work with many add-ons like Workflow Max, Receipt Bank, Slack, TradeGecko etc., to extend your software’s capacity and improved work experience.
To book for trial, call us on our numbers or Please fill out the form here.
We have combined team of Professionals. Seniors are generally Certified Chartered Accountants. Junior Bookkeepers are having Qualifications like Bachelors of Commerce, Masters of Commerce, Masters in Business Administration in the subject of Accounts and Finance, Intermediate level Qualification of Chartered Accountancy, etc.
For information visit our work methodology page.
We prepare a checklist of information required for bookkeeping and send you at timely intervals so as to ensure that we can do bookkeeping faster.
We can provide to you once we move ahead in our interview.
We serve clients on MYOB and have expertise working in Essentials, Account Rights Plus, etc.
Yes, We are presently processing Payroll for Number of clients in US , UK and Australia and take care of complete payroll activities.
Goods and Service tax (GST) is levied on sales of all the goods and services in Australia. GST is generally chargeable at 10% of value of sales.
Business Activity Statement is a predefined form to be submitted to the Australian Tax office by all the business persons in order to report on their all the tax obligations during the period covered.
BAS is generally required to be filed quarterly by various businesses.
Yes, Owner of the business can prepare sign and lodge the tax return on his own. Its not mandatory that the Tax return needs to be signed by an EA or CPA.
No , its not mandatory that it should be prepared by only CPA or EA. It can be prepared by anyone who has PTIN.
We have Enrolled Agent who has the Authority to sign the documents for our clients after completing the through professional check.
Meru Accounting has its operational centre in India and hence the prices are quite less as compared to US based CPA’s and Enrolled Agents.
Meru Accounting has a team of Tax experts. Each Tax expert prepares around 300-400 Tax returns every year for various CPA’s in United States and Individual Businesses like yours. Due to this vast Experience and Robust Quality Check processes in place we can ensure you about correct Tax planning for your firm.
