We all know how profitable the real estate business can be in Canada. However, not everyone is capable of doing so. Those who have sold or purchased a property in Canada have only a minimal understanding of the real estate market. When you get deep into the world of real estate, you’ll discover that there are several issues that only a professional real estate accountant can solve.
But, what are the areas of your real estate business that a real estate accountant can help you with? That is why we have put up a concise reference to Real Estate Accountants in Canada and their services.
Real estate accountants, like other accountants, obtain their qualifications in the field of accounting. An accountant’s specific experience is what distinguishes them as a real estate accountant. Real estate accountants are accountants that construct their portfolio with all of the real estate marketplaces and company knowledge.
So that’s how a real estate accountant is defined, but what exactly do they perform?
The answer to this question is as follows:
- Bookkeeping
Real estate investors have a lot on their plates. They must maintain track of all their clients, the progress of their transactions, and, most crucially, no new lead should be missed. And, in order to keep all of these tasks in order, real estate agents rarely have time to review their spending and bookkeeping. Real estate accountants work with real estate agents and firms to provide bookkeeping services.
- Tax Consultation
When it comes to the real estate sector, the Canadian government offers various tax perks. However, not all real estate agents are aware of perks such as tax sheltering or their exact write-offs. That is why real estate accountants ensure that real estate professionals receive appropriate tax advice across Canada.
- Incorporation of a Business
Some professional accounting firms also offer business incorporation services as part of their business management and governance services. Because freelance accountants work on their own, this is unusual. Certified accountants or accountants who work for an accounting firm can provide incorporation services from the ground up.
- Analysis of Cash Flows
Keeping track of your previous performance is the ideal strategy to improve your real estate services. The right Key Performance Indicators are known by real estate accountants (KPIs). By identifying them ahead of time, you can choose what is critical and what can wait. One of an accountant’s most important jobs is cash flow analysis. When it comes to a real estate accountant, you can trust them to manage everything with ease.
- Planning for Succession
Not only can real estate accountants help you manage your books and prepare your taxes, but they can also help you plan for the future. When you finish a significant sale, the relief you feel can make it difficult to focus on future deals. You can continue to relax about your company’s succession planning with the help of a real estate accountant.
Takeaway
Before choosing a professional accountant as your real estate accountant, it is critical to go through all of the important aspects. Real estate accountants have nearly identical qualifications to ordinary accountants, but they have specialized experience. It’s also unique to the real estate industry. Ordinary people who want to buy or sell a home might benefit from real estate tax accountants by receiving proper tax advice.
Need help with your real estate business? Book a consultation with IDM Professional Corporation CPA
