Before commencing your property rental business, you will have given proper pre-planning consideration to your ownership structure. This is critical for maximising deductions and allocating net rental profits or losses.
The same planning is necessary to ensure that your accountant has all the information to prepare your rental accounts in an accurate manner.
This system is designed to give you the tools to do just that.
Not only will you be minimising accounting fees by reducing completion time, but also ensuring that your accountant has the opportunity to maximise deductions and minimise taxes payable.
Accounting System for Property Investors:
Before commencing your property rental business, you will have given proper pre-planning consideration to your ownership structure. This is critical for maximising deductions and allocating net rental profits or losses.
The same planning is necessary to ensure that your accountant has all the information to prepare your rental accounts in an accurate manner.
This system is designed to give you the tools to do just that.
Not only will you be minimising accounting fees by reducing completion time, but also ensuring that your accountant has the opportunity to maximise deductions and minimise taxes payable.
Accounting System Overview
Property Investment is a business. Because it is a business, you must adopt a businesslike approach to your record keeping.
Experience has taught us that a good property investment accounting system will include the following features:
Chattel and fitout valuations are always done for a new property.
A file separating tenancy and property related papers from tax and accounting papers.
A bank account dedicated to property affairs.
An invoice file where invoices are stored in cheque number order.
Each paid invoice stamped with cheque number, date paid, and the amount.
Where multiple properties are owned, rent and expenses are clearly categorised by property. This is vital so the performance of an individual property can be monitored.
An annual summary of rent and expenses by property is provided.
Cheque butts are completed stating the payee and the nature of the payment.
Rent and capital injections are clearly described to avoid confusion.
A Vehicle Inspection Log Book is maintained.
The accountant's annual reminder checklist is completed fully and accurately.
Home office expenses are detailed and the size of the home office is carefully measured.
Loan statements are provided to confirm interest paid and loan balances.
Note: there are now excellent computer systems available to you, specifically designed to manage property investment.
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