When you have a reliable landlord accountant on your side, you can rest easy knowing that your tax return will be filed correctly and that your profits from managing your rental properties will increase.
You should be utilising accounting software regularly as an investor to digitise receipts, maintain your books up to date, get insight into the economics of your property, and run reports for tax time.
However, the software is not enough. A certified public accountant (CPA) or property tax accountant may be an invaluable asset, allowing you to focus on running your business. At the same time, they handle the nitty-gritty details of things like depreciation schedule management, corporate structure, and tax planning preparation.
You wouldn’t want significant financial losses, would you?
Most individuals go into real estate investment for a lot of reasons, like to gain profit and to have a diverse property portfolio, but we think it’s safe to assume that the estimated 438,000 registered landlords didn’t enter the rental business to learn how to keep track of finances for rental properties.
Let’s be honest; this isn’t the most riveting topic of investing. Successful financial management, however, may reduce tax liability, boost rental revenue, cut costs, and boost return on investment.
Overpaying taxes, losing rental revenue, increasing costs, and getting a poor return on investment result from sloppy financial management– and we want you to stay away from that.
With Pearl Lemon Accountants, you never have to worry about sloppy financial management.
Get in touch with us right away!
A real estate accountant makes financial plans and reports based on planning, investing, budgeting, and taxes.
Other tasks include analysing investments, coordinating appraisals, and evaluating property owners’ assets. Hiring them will be a great help for you and your property. Check out this comprehensive list:
Many people who invest in real estate only talk to their accountants when they have to file their taxes, and then they don’t talk to them again.
This needs to change.
When you talk to your real estate tax accountant often, you can build a relationship to help you develop plans.
Someone familiar with the UK tax code will know about all the loopholes and fines that can happen if things aren’t done exactly as written. So there’s no shame in giving the complex jobs to someone who has made a career out of figuring out these problems.
For example, your real estate accountant will know what steps you can take to get tax relief on your property. Basically, a landlord can deduct unlimited passive losses from their original rental income if they spend a certain number of hours maintaining their property.
The UK tax code is constantly changing, and states and cities may have their own rules that you need to know too.
Suppose you have a close relationship with your accountant. In that case, you can plan for any changes or surprises, reduce potential financial losses, or even make money from them.
A tax accountant’s job is to understand how tax laws change over time, and many will look for information about their client’s investments to help them improve their cash flow and pay less in taxes.
Real estate tax accountants or CPAs can help you determine how to structure your investment real estate to reduce risks.
For example, they can give you unbiased advice about whether or not you should run your rental business as a sole proprietorship, a limited liability company (LLC), or even an S or C corporation.
Lastly, your accountant will talk to you about your options and can help you figure out the best way to name your legal entity based on your plans and current situation.
Yes, careful bookkeeping is crucial, like digitising receipts at the point of sale and regularly tracking rental income and expenses. However, it is also essential to have a specialist property accountant look over your books to ensure they are correct and make the most of all the deductions you can claim, increasing your annual cash flow.
A real estate tax accountant will also know your current financial situation and be able to give you advice on how to use your existing equity to buy a new property and add to your property portfolio.
In addition to connecting you with other investors with similar goals, a real estate accountant can also help you find financing. This will help you meet more people and grow your network. This is important because it lets you quickly learn about market trends and find out about new investment opportunities.
Also, if you want to expand your real estate property portfolio but can’t get traditional financing, they may be able to put you in touch with a potential property investor.
There are a lot of tax accountants and CPAs who specialise in real estate. You will get many results if you search for “accountants for landlords” in your area. The hard part is finding one whose methods and services are a good fit for what you need.
You should try to find a real estate tax specialist who has worked with real estate investors before and knows the best ways to keep books and plan for the future.
For example, an accountant who makes reports on profits, development costs, and operational costs will save you a lot of time when dealing with the HM Revenue and Customs. This person will also give helpful reports, such as revenue cycles, cash-basis income statements, lease abstracts, etc.
Lastly, a good property tax accountant should tell you about the different types of business structures, the level of legal protection they offer, and how much it would cost to hire more experts. If you choose to hire another person or group, the accountant will advise you on how to do so in a way that is good for your finances.
To give you an idea of our accountancy services aside from the usual landlord accounting, you may read on our list below:
Our team of chartered accountants are here to assist you in maximising the tax deductions, credits, and exemptions available to you.
To avoid trouble with the HM Revenue and Customs, our skilled tax consultants ensure that all corporate tax returns are filed following their requirements.
Suppose you have an international business or are planning to relocate abroad. In that case, our team of international tax professionals can help you minimise your tax liability in the United Kingdom and elsewhere.
How you organise your life and company in another country will affect the amount of tax you have to pay there. We’ll work with you to develop a strategy that minimises your tax liability.
We ensure you and your company stay within the law and save you money on taxes whether you’re doing business in the UK or elsewhere.
We have tax professionals who will advise you on all aspects of your tax position to ensure you comply with the taxing authority.
We provide an easy and specialised service for submitting UK taxes. With these tax services, we want to assist you with the tax implications of your properties, be it residential property, rental property, etc.
VAT accountants guarantee that your company registers for VAT most advantageously and pays the correct amount of VAT to HMRC. To file accurate reports with the HMRC, your company’s VAT accountants must review the books.
These can be quite useful throughout the tax year, answering all queries you may have and saving you time and energy in dealing with the complexities of VAT. When dealing with the many types of VAT required for various products and services, contacting a VAT accountant is recommended (and saving you a lot of money).
Learning the ins and outs of value-added tax is a process that requires patience and time. Having a certified accountant on hand is helpful because they understand how to get the job done efficiently and correctly.
Audits and inspections by the HM Revenue and Customs can be a pain, so it’s best to get some expert advice before you get caught off guard.
Typical outcomes of investigations are:
The HMRC will almost always contact one’s accountant during audits and investigations. You could get in trouble if you don’t provide the requested information or cooperate with a visit.
Engaging the services of a tax professional is a smart move for several reasons, especially during a tax inquiry.
However, our accountants can guarantee that you don’t face a tax audit in the first place.
Our services include what was given above and more. Is there anything missing that you need? Contact us today, and let’s discuss.
Pearl Lemon Accountants can help you manage your buy-to-let finances effectively, whether you’re a beginner or have a burgeoning portfolio of properties.
Our experts in accounting always combine straightforward accounting approaches with simple, transparent pricing structures to help landlords overcome the common financial hurdles associated with tax management.
We offer our landlord clients a full range of accountancy services and a free financial health check on your investment properties as part of our landlord accounting services.
Additionally, we will provide you with tax advice on capital gains and a free mortgage review.
Get in touch with Pearl Lemon Accountants today to get started.
An accountant helps your firm satisfy statutory duties and file tax returns on schedule. Accountants can also aid with business planning.
You can find accountants you can trust in accounting directories. Look up references, research them online, and talk to a few to get answers to your questions. Your business friends may also refer you to effective accountants.
As you know, owning a rental property can help you save much money on taxes.
Depreciation and deductions are two of the best ways to do this. But you must keep outstanding records to show you are eligible for specific tax relief. You can start managing your rental property accounting with the following tips on how to keep records:
When you allow us to keep track of your finances, you give yourself more time to do your work and please more clients.
It's a win-win situation for everyone.
Aside from that, you'll also gain financial stability because your assets and liabilities are managed well enough not to cause any trouble for you in the future.
So let our experts work for you, and you won't regret it even a bit.
Book a call today to get started.