The basics of property management accounting; what you need to know.
As a property owner, there are a variety of different accountancy services that you need to be aware of. You need to keep track of all rent received and all expenses (landscaping, maintenance, etc.) which can be difficult to wrap your head around. Today we’re going to help you wrap your head around it.
What is bookkeeping?
As a property manager, it’s highly important to keep on top of your income and expenditures (known as bookkeeping). If there are any mistakes within your bookkeeping, it could lead to hefty fines down the line when you’re doing your tax returns. Further, it’s also good to have excellent bookkeeping as it allows you to see if your properties are turning a healthy profit, or are liabilities.
What are self assessment tax returns?
Self assessment tax returns are a return that has to be submitted to HMRC every year. These tax returns go hand in hand with good bookkeeping, as self assessment requires exact and correct bookkeeping in order to work successfully.
What are property management accounts?
Property management accounts are good for many people, such as landlords, investors, developers and even surveyors. They help you to deal with a multitude of things, such as your service charge, VAT and preparation for reconciliation and auditing. It also helps with scheduling income tax and expenditures, as well as the feasibility of prospective tenants. With the broad range of things property management accounts can help you with, it is crucial for property owners.
What is Portfolio Management?
It’s surprising that many people don’t know, in terms of property, what is portfolio management? Managing your portfolio is a critically important part of property management. Similar to bookkeeping, if you don’t keep up on your portfolio management then it may complicate other parts of your accounting. As your portfolio expands it becomes more and more difficult to handle the complexities. This added difficulty can lead to costly mistakes, such as paying too much tax or HMRC penalties.
How we can help
When you’re looking for accounting solutions for property management, it’s best to keep it all in one place. So many different facets of property management accounting work together, such as bookkeeping, self assessment tax returns and more. That’s where we come in.
At Carrington Blake Accountancy, our experts are keen to help each and every one of our customers achieve the best accounting possible for them. If you own property and want carefree and low-cost accounting, look no further. Give us a call on 02075376628 to get more information, or to get a quote.
