Australia’s commercial property management industry is growing, with an impressive market cap of $1.7 Bn as of 2022. This industry has projected signs of recovery from the disastrous impact that the COVID-19 pandemic and the instability worldwide posed over the real-estate sector of Australia. This can be inferred from the fact that the industry contracted by -4.3% over the past 5 years while showing signs of recovery from the pandemic by projecting a -0.8% contraction in 2022. As for Brisbane, the property’s median unit price (MUP) decreased by 0.5% in 11/2022, increasing unit value by 8.9%. The MUP in Brisbane is now $490,000.
While the real estate businesses in Brisbane show signs of growth, the ability of the firms to track the money flowing in and out through the bank accounts becomes all the more difficult. Hence to solve such problems, there are trained professionals capable of managing the accounts of such firms and such a professional is called a property accountant in Brisbane.
This article will help you understand what a property accountant does and list their responsibilities.
Who is a Property Accountant?
Property accountants are those who manage all the accounts that a firm might have related to the properties that it holds. They track all the cash that goes in and out of a property and report their findings to the management or asset managers of the properties.
While businesses with massive holdings and portfolios require several property accountants working full-time, small firms could work with a few professionals working half-time or on a contract basis to manage their accounts.
Responsibilities of a Property Accountant
Managing the Books
Every month as the rent is collected from the properties in North Lakes, Chermside, and Ipswich and all the expenses are accounted for, it becomes the responsibility of the property accountant to keep track of all the funds to manage all the accounts.
Budget Tracking
As the month ends, when the books are to be closed, the property accountant in Brisbane compares the budget to the actual results and looks into the differences that could lead to issues later.
Budgeting
The property accountant’s help is sought in constructing the property’s operating budget each year thanks to their detailed knowledge and expertise in handling property-level operations.
Accounts Payable/Accounts Receivable
The property accountant, who could be likened to a steward of the property’s finances, is responsible for approving and reviewing significant expenses and managing the collection of major variables. They must approve and review A/P vouchers, daily cash receipts and payroll data entries.
Adjustments
Each month the property accountant must review and approve the account adjustments and journal entries to balance the books efficiently.
Account Audits
Occasionally, the property accountant would have to audit the operations and accounts of a given property in Carindale, Sunnybank, or Browns Plains to ensure sufficient safety measures are in place to safeguard the assets from internal theft. In the case of large companies, the property accountant may even aid the external auditors.
Tax Planning And Depreciation
For the fixed assets of the property, the accountant must ensure that they depreciate as per the rules of the tax authorities and must come up with strategies to minimise the taxes that the property stakeholders may have to bear.
Reporting
For every property that the property accountants are responsible for, they must prepare and distribute every other month to describe the property’s performance, keeping the targets in mind. It also becomes their duty to identify and report any issues, risks or chances of saving funds.
Final Thoughts
A property accountant in Brisbane plays a crucial role in managing the day-to-day activities of real estate or commercial assets in places like Redland Bay, Fisherman Island, and Redcliffe. The knowledge, experience and expertise they possess can go a long way in bettering the financial performance of a business while identifying and lowering any risks or issues that may creep up in time.