As a landlord, you have a lot of financial responsibilities. Not only do you have to worry about collecting rent and paying your mortgage, but you also have to keep track of your expenses and income for tax purposes. This can be a lot to handle, especially if you own multiple properties. That is where a property accountant comes in.
Read on to know more about property accountants and how they can help you.
Table of Contents
- 1 What Does a Property Accountant Do?
- 2 Why You Should Hire A Property Accountant
- 3 Choosing the Right Property Accountant
- 4 Takeaway
What Does a Property Accountant Do?
A property accountant is a professional who specialises in tracking and managing finances for landlords. They can help you stay organised, keep track of your income and expenses, and prepare your taxes.
The main purpose of a property accountant is to provide accurate information about the financial performance of a property through income statements and balance sheets and may also be responsible for tax compliance and property insurance. This information is used by property owners, investors, lenders, and other stakeholders to make informed decisions about the property.
In addition, property accountants may provide consulting services to property owners and managers on issues, such as cash flow management and capital investment planning. This can be useful if you want to determine what is producing profit and what to do to decrease financial loss.
Why You Should Hire A Property Accountant
Are you a landlord or property investor who is looking for ways to reduce your taxes and keep more money in your pocket? If so, then you should consider hiring a property accountant. In addition to this, you can gain a lot of benefits from hiring professionals to handle your finances. Some of them are:
1. Staying Organised
One of the biggest benefits of hiring a property accountant is that they can help you stay organised.
You know how important it is to stay on top of your finances as a property owner. But let’s face it, keeping track of all your income and expenses can be a real hassle. That’s where a property accountant comes in.
A property accountant can help you set up a system for tracking your income and expenses. This way, you’ll always know where you stand financially. Plus, come tax season, you’ll be glad you have all your financial information nice and organised. So if you’re looking for a way to streamline your finances, hiring a property accountant is a great solution.
2. Saves Time
Being a landlord takes a lot of time and effort. From finding good tenants and maintaining the property to dealing with repairs and collecting rent, there’s a lot to keep track of. And that’s not even mentioning the paperwork!
Fortunately, there is one way to help ease the burden: hiring a property accountant. Instead of having to keep track of your finances yourself, you can leave it to the professionals.
A property accountant can handle all the financial aspects of being a landlord, from preparing and filing taxes to keeping track of expenses. In addition, they can also provide invaluable advice on how to save money and maximise profits. This frees up your time so you can focus on other aspects of being a landlord.
So if you’re feeling overwhelmed by the task of being a landlord, remember that help is available. A property accountant can take care of the numbers while you focus on taking care of your tenants.
3. Maximises Deductions
Definitely, a property accountant is an invaluable asset to have on your team. A good property accountant can save you a lot of money come tax time. They know how to maximise deductions for landlords and make sure that you are taking advantage of all the possible options available to you. This can result in a significantly lower tax bill for you.
A property accountant will also be able to advise you on what expenses are tax deductible and which ones are not. This is extremely important as it can save you a lot of money in the long run.
4. Prepares Your Taxes
Preparing your taxes can be a daunting task, but a property accountant can make it easy. They do this by ensuring that all relevant documentation is in order. They calculate your taxable income, which takes into account things like rental income, expenses, depreciation, and capital gains. This information is used to complete the tax return, which is filed with the Australian Taxation Office. They then fill out the forms and file your taxes for you, which can help in taking a lot of stress off your shoulders.
In many cases, a property accountant is also able to negotiate with the ATO on your behalf to help you get the best possible outcome. The ultimate goal is to make sure that you can maximise your tax deductions and reduce the overall tax liability.
5. Ensures Accuracy
When it comes to your finances, accuracy is key. And a property accountant can help you avoid mistakes that could cost you money. They help landlords file accurate taxes by keeping track of expenses and income throughout the year. This ensures that when it comes time to file, all of the necessary information is at hand and nothing is forgotten.
In addition, a property accountant can also help to ensure that all relevant paperwork is filed on time, preventing any penalties or interest charges. You can then have peace of mind knowing your finances are in good hands.
6. Frees Up Your Time
As a landlord, your time is valuable. Without a property accountant, you would have to do all the necessary steps to make financial statements by yourself, which can be tiring and stressful. On the other hand, hiring a professional can free up some of your time so you can focus on other things like finding new tenants or making repairs to your rental properties.
7. Peace of Mind
Having a property accountant help you with your finances gives you peace of mind. When you have someone else managing your money and taking care of your property taxes, you can relax and focus on other important things that need your attention.
Property accountants are professionals, so you can be sure that your finances are in good hands. They understand the tax laws and how to maximise your deductions. They also keep track of your income and expenses, so you always know where you stand financially. This knowledge can help you make informed decisions about your property.
Choosing the Right Property Accountant
Property accounting can be complex and time-consuming. Hiring the wrong people can create more problems and stress, which is why it is important to choose the best property accountants. But how do you do that? Here are some things to look for when choosing a property accountant:
Look for an accountant who has experience working with landlords. They should understand the unique financial needs of landlords and be up-to-date on all the latest tax laws. This will ensure that they are familiar with the unique challenges and complexities of this type of accounting.
Also, make sure the accountant is up to date on the latest changes to tax laws and regulations. This way, they can make your property business compliant with all the latest requirements.
Check out online reviews and ask other landlords for recommendations. Because we are talking about finances here, you want to make sure you are working with a reputable accountant who will have your best interests in mind.
Find out what services the accountant offers. A good property accountant will be able to offer a full range of services, from bookkeeping and tax preparation to financial planning and advice. But some only do taxes, while others offer a full suite of financial services. Choose an accountant who can offer the services you need or one that provides comprehensive services, depending on your needs.
Anytime you’re looking for a new service, it’s always best to ask about fees upfront. This is especially true when you’re looking for an accountant. You want to be sure that you know exactly how much they charge and what is included in their fee. Otherwise, you might be surprised by hidden costs down the road.
Some accountants might charge a flat rate, while others might charge by the hour. Be sure to ask about any potential hidden costs as well, such as travel expenses or additional charges for complex returns.
It’s also important to be aware of any red flags, such as an accountant who quotes a fee that’s significantly lower than the going rate. In most cases, if it sounds too good to be true, it probably is. So, don’t be afraid to ask questions and make sure you’re getting what you expect before you sign on the dotted line.
As a landlord, having a property accountant on your team provides a lot of benefits. They keep track of all the money that comes in and goes out of your property. A good one can also help keep you organised, give strategic advice and provide peace of mind, knowing that your property’s finances are in good hands. When choosing a property accountant, be sure to check their experience, reputation, services and fees. This will help you find the right professional for your needs.