Accounting Rules In Real Estate That You Should Not Overlook
When dealing with large sums of money, varied transactions, property valuations and more the process of managing your real estate is at best tricky at worst a complex mesh of activity. As a result, you need everything working in concert accounting roles, responsibilities, software and consultants.
What is your role?
- Manage commercial or residential real estate?
- Run a real estate agency
- Manage an investment trust
If you are any of the above, then you need to talk with us.
Rules Becoming More Strict
Keeping up with the rules on a variety of fronts is imperative. Here are some areas the rules have been enacted:
- Money Laundering
- Inheritance taxes for land, property
- Property valuation for commercial and residential real estate
- Managing and accounting for funds
- Ownership transfer and identification
Make sure you accurately conducting asset evaluations. Taxes and charges are directly related to value. If inaccurately valuing real estate that you manage or sell, you may be liable to litigation, fees and fines. Follow valuation regulations and keep accurate records.
Testy Real Estate Audits
Last and related point to above, sometimes property centric businesses are targeted for audit by tax inspectors. Government officials will review and inspect in detail your records. Questions often arise and anomalies are vetted. Needless to say, this can be stressful, time-consuming, and costly!
Audits demand that you need to keep accurate records. That you keep them safe. And keep them accessible. Accounting software can assist with this and keep an audit trail of your transactions. This will help in case you are audited and greatly simplifies the process. You may also want to consider audit insurance. A small price to pay versus paying a much larger sum when the auditors come knocking.
Expert Real Estate Accounting
One of our specialties is the real estate market. We will help follow the ever-changing world of rules. By doing so, we can help with the following:
- Structure business for tax efficiency
- Guide you on how to avoid unnecessary expense
- Leverage your accounting software to give you updates, reports and share forecasts as needed.