The real estate sector has been experiencing an upward trend for a while now. In the last decade or so, more investors have shown interest in buying properties, and it is not surprising that the demand for tax and accounting services has been on the rise. From landlords and regular developers, to investors, agents and companies, everyone needs a property accountant at some point. Taxation is more complicated than ever, and any form of non-compliance can have severe consequences. For most investors, agents and developers, the real task is to keep up with the changing norms and practices related taxes and accounting, and that’s exactly where accounting services come in handy.
How can property accountants help?
The role of property accountants is a diverse one. They can help extensively with tac planning, and they keep up with changing regulatory requirements and keep a check on the options that can help in tax savings and staying compliant. From inheritance tax planning to commercial property finance and handling aspects with lenders, these accounts do it all. In the UK, for instance, the impact of clause 24 on personal tax and relevant aspects cannot be ignored. Property accountants are responsible for keeping a tab on all these aspects. They also help clients in understanding the best tax structure that may work for them and deal with things like component accounting. In case a client has issues with lenders or needs to send reports on a regular basis to such parties, the accountants can take care of the processes and formalities involved.
Selecting the right accounting firm
When it comes to property tax, selecting the right tax return accountants is important. The role of an accountant may pertain to tax planning and ensuring compliance, but eventually, their foresight and taking basic steps in time can help clients in growing their businesses. Managing your taxes doesn’t have to be a complicated aspect, as long as you have a reliable accounting firm handling your requirements. They can also offer advice on lender covenants and how business plans may have an impact on tax and accounting. If you are hiring an accounting firm, you may want to check if the concerned company has experience with cloud accounting and can help in migrating your business data to the cloud software. Many accounting firms also help in managing cash flow and keeping up with legislation related to property.
Discussing your property taxes
Dealing in real estate involves considerable risk, and you wouldn’t want to take an extra one by not following the rule of the law. Make sure that you are transparent and fair with your accountants and have discussed your property taxes in detail. Do not hide matter of fact, and if there have been errors in the past or mistakes that may mean serious regulatory and statutory compliance-related concerns, share the same with the concerned accounting firm and ask for their inputs. Tax planning issues can be managed easily, as long as you have a competent team of accounting experts.
Author Bio – Aadil Butt is a Chartered Accountant and Founder of Finance Equation who are award winning Chartered Certified Accountants providing Cloud Accounting, Tax and Consultancy services in London and Essex in the UK.