Real Estate Accounting & Advisory Services
Real estate businesses operate in a competitive and transaction-driven environment. Fluctuating sales activity, commission payments, staffing costs, property management income and ongoing operating expenses can make profitability and cash flow difficult to predict.
At J&N Accountants, we provide accounting, tax and advisory support for real estate businesses across Perth and Western Australia. We help business owners maintain accurate financial records, meet their compliance obligations and understand the financial performance of their operations.
How We Help Real Estate Businesses
Our accounting and advisory services include:
- Financial statements and income tax returns
- Bookkeeping and account reconciliations
- GST and BAS preparation
- Payroll, superannuation and payroll tax compliance
- Commission payment reconciliations
- Cash flow budgeting and forecasting
- Management reporting and KPI tracking
- Office and business profitability reporting
- Vehicle and business expense reviews
- Business structuring and tax planning
- Business valuations
- Finance and loan documentation
Revenue, Commissions and Profitability
Sales volumes and commission income can vary significantly throughout the year, while wages, rent, advertising, software and other operating costs continue regularly.
We prepare financial and management reports that help business owners understand revenue, commissions, staffing costs, overheads and operating profit. Where appropriate, reporting may also be prepared by office, department or income stream.
This information can help management assess whether revenue levels are sufficient to support current costs and future plans.
Commission and Payroll Reporting
Real estate businesses may pay employees through a combination of salary, commissions, bonuses and allowances. Accurate payroll records and commission reconciliations are important for both financial reporting and compliance.
We assist with payroll processing, Single Touch Payroll reporting, superannuation reconciliations and payroll tax compliance. We can also help reconcile commission payments and review their effect on business profitability and cash flow.
Employment law advice may be required when establishing or changing remuneration arrangements.
Property Management Income
Property management businesses may receive recurring management fees alongside letting fees, inspection fees and other service income.
We help businesses record and review these income streams, reconcile operating accounts and understand the profitability of their property management activities.
Statutory trust account management and auditing are subject to separate regulatory requirements and should be handled by appropriately authorised professionals.
Cash Flow Budgeting and Forecasting
Timing differences between property settlements, commission receipts and business expenses can create cash flow pressure.
We prepare budgets and cash flow forecasts to help business owners anticipate wages, tax payments, marketing expenses and other commitments. Forecasting can also assist when opening a new office, hiring additional staff, purchasing a rent roll or investing in new systems.
GST and Tax Compliance
Real estate businesses may receive different types of income and incur a wide range of operating expenses. Accurate classification is important for GST and income tax reporting.
Our tax and compliance services may include:
- Income tax returns
- Business Activity Statements
- GST reporting
- Payroll tax
- Superannuation
- Fringe Benefits Tax
- Year-end tax reconciliations
- ATO correspondence
We can also review the tax treatment of commissions, vehicles, advertising, software, professional fees and other business expenses.
Vehicles and Business Expenses
Real estate professionals may use vehicles, mobile phones and other equipment for both business and private purposes.
We assist with recording relevant expenses, reviewing business-use percentages and determining the appropriate accounting and tax treatment. Clear records are important when supporting deductions and managing Fringe Benefits Tax obligations.
Business Acquisitions and Rent Rolls
Purchasing or selling a real estate business or rent roll requires careful financial review.
We can assist with reviewing financial information, preparing forecasts, considering the accounting and tax implications and supplying relevant documents to banks or lenders. Business valuation, legal and finance advice may also be required depending on the transaction.
Business Structuring and Tax Planning
The appropriate structure for a real estate business may depend on ownership, licensing arrangements, staffing, income sources and future plans.
We provide accounting and tax advice for businesses establishing a new operation, introducing additional owners, purchasing another business or preparing for succession. We also conduct tax planning reviews before the end of the financial year.
Legal advice should also be obtained when changing ownership or business structures.
Who We Work With
We support a range of real estate businesses, including:
- Residential real estate agencies
- Commercial real estate agencies
- Property management businesses
- Buyers’ agencies
- Real estate consultants
- Rent roll businesses
- Property service providers
- Other real estate professionals
Talk to Our Real Estate Accounting Team
Whether you need assistance with tax compliance, bookkeeping, payroll, commission reporting, cash flow forecasting or business planning, our team can provide support relevant to your real estate business.
Contact J&N Accountants to discuss your accounting needs and the financial priorities of your business.