We all know real estate business can turn out to be quite fruitful in Canada. But this is not something that everyone can do. Those who have sold or bought a property in Canada have only a slight idea about the dealings of the real estate market. Once you get in the full canvas of real estate, you find out there are many things that only a professional real estate accountant can handle.
But the question is, what areas of your real estate business does a real estate accountant cover? And that is why we present you with a complete guide on Real Estate Accountants and their services in Canada.
Real Estate accountants acquire their qualifications in the area of accounting like other accountants. The element that specifies an accountant as a real estate accountant is their particular experience. The accountants who develop their portfolio with all the real estate markets and business experience are usually considered real estate accountants.
So, this was the definition of a real estate accountant, but what do they do?
The answer to that question is :
Services Offered by Real Estate Accountants
Real Estate investors are very busy people. They have to keep track of all their clients, their deals’ statuses, and most importantly, no new lead should be wasted. And maintaining all of these activities in the correct order, real estate agents seldom get the time to check up on their expenses and bookkeeping. Real estate accountants are the people who provide bookkeeping services for such real estate agents and companies.
2. Tax Advisory
There are several tax benefits from the Canadian government when it comes to the Real estate business. However, not all real estate agents are fully aware of benefits such as tax sheltering or their exact tax deductibles. That is why real estate accountants ensure that the people in real estate receive suitable tax advisory all across Canada.
3. Business Incorporation
As far as business management and its governance are concerned, some professional accounting firms also provide business incorporation services. This is not usual for freelance accountants as they work independently. The accountants who are certified or who work with an accounting firm are able to provide the incorporation services right from scratch.
4. Cash Flow Analysis
The best way to improve your real estate services is to keep track of your past performance. Real estate accountants know the right Key Performance Indicators (KPIs). By identifying them in time, you can understand what is essential and what should be postponed. Cash flow analysis is one of the key responsibilities of an accountant. When it is a real estate accountant, you can expect them to handle it all very easily.
5. Succession Planning
Not only that you, as a real estate person, can get your books managed and taxes prepared, real estate accountants can also plan what’s coming next. Once you are done with a big deal, the relief you get can distract you from future deals. With a real estate accountant by your side, you can continue to relax about your company’s succession planning.
It is essential to go through all the crucial details before hiring a professional accountant as your real estate accountant. Real estate accountants have almost the same qualifications as other accountants, but their experience is specific. And it is specific for real estate businesses. Real estate tax accountants can also help ordinary people who want to buy or sell a property by providing them with the proper tax guideline.
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.