A property accountant is someone who has received special training in the field of land and property accounting.
This includes both financial management of the real estate, as well as general accounting knowledge specific to the industry. A strong background in all facets of accounting and finance is beneficial for anyone considering a career as a property accountant. Property accountants are often employed by property investors, either directly or by way of an external service provider that manages their properties on their behalf. They may also be hired by companies that provide specialist services to landlords. Property accountants work closely with real estate agents, lawyers, and other professionals involved with purchasing, renting, and property management. At times, they will act on behalf of landlords or tenants where transactions or disputes occur between them (for example submitting invoices, cash receipts, or statements on behalf of landlords and tenants, collecting rent arrears). Their role is particularly important for large property portfolios, where a single investor may have hundreds of properties under management. A property accountant has asset management responsibilities that include tracking rental income and preparing annual budgets for the same, tracking expenses related to the property, as well as the associated interest payments and capital repayments (borrowings) on mortgages. They review the general ledger to ensure all transactions are reported correctly. They also perform regular reconciliation of accounts receivable and accounts payable. This helps them identify discrepancies quickly before they become disputes between parties involved in a transaction involving real estate assets. As such, understanding how tax laws affect each transaction is another important part of the job; both from an individual landlord's perspective as well as that of any business providing services to them.
Property accountants are responsible for managing all activities that relate to property assets, including capital gains (on the sale of properties), land transfer duty, stamp duties, and fringe benefits. In this position, they must ensure any costs associated with holding property are accounted for correctly in reports submitted to the Australian Taxation Office, or relevant state revenue agency. Other duties include maintaining records on mortgage interest payments, depreciation on buildings, cost of capital works undertaken by landlords, and other expenses incurred in ownership of a real estate portfolio.
What competencies must one have in order to be considered for a career in this role? Career counsellors around the world suggest that employers look for individuals with the below skills.
Ability to manage multiple accounts and transactions at once, especially when large portfolios are under their management.
Strong numerical acumen; ideally with some background knowledge in accounting systems such as Xero or MYOB.
Good understanding of tax law across all areas relevant to real estate assets (property taxes, capital gains, etc.) including but not limited to GST, FBT, and taxation of trusts.
Excellent communication skills to interact with a variety of people, including property managers, landlords, and tenants.
Ability to liaise closely with other professionals involved in the property buying/selling process.
In Australia, demand for property accountants is significant due to the sheer number of rental properties in most states. This represents a huge potential market for the services provided by property accountants including individuals and small businesses investing in rental homes as well as large businesses providing management services to landlords with dozens if not hundreds of tenants.
Although property accountants are similar to regular accountants in that they both work for clients to compile monthly financial reports, their focus is very different.
Property accountants are involved in all aspects of taxation related to buying/selling/renting properties, including depreciation on building structures, land transfer duty, and capital gains tax. They may also be required to complete valuation reports on properties that can be sold.
Regular accountants meanwhile are paid for more basic functions of compiling your annual accounts for submission to the Australian Taxation Office (ATO) or other relevant state revenue agency.For people who already have experience working as an accountant in some capacity, gaining a qualification in property accounting (usually a diploma or certificate) is the first step, and this knowledge can be gained with online or part-time courses.
Property accountants are also sometimes referred to as 'real estate' accountants, given that they specialise in taxation related specifically to real estate assets, including properties. These individuals can either be employed directly by companies providing management services to landlords or go freelance and hire themselves out to individual landlords or businesses who have rental properties. Alternatively, they may work for a large accounting firm that charges clients fees for the compiling of their annual accounts and associated taxation.
The profession involves complex taxation issues and compiling regular reports that significantly differ depending on where you are located worldwide. Once you have become a professional real estate accountant, you will need to keep abreast of new laws every year that will affect your clients and the advice you give them. This is a very time-consuming task but comes with a high level of satisfaction given the high value of taxation in today's global economy.
A real estate valuation accountant is someone who works specifically with the appraisal of property values, including commercial and residential properties. This role can entail giving advice on whether a property should be sold or rented out, how much rent it could fetch, and how much the owner should ask for if selling. The job can also entail compiling reports that provide important accounting information for potential buyers.
Property accountants may find themselves working in both smaller accounting firms as well as larger companies with hundreds of individual properties under management Some individuals specialise in only one aspect of property accounting, such as capital gains while others become experts in a variety of fields related to purchasing and owning property in their country Some people choose to become specialists in tax filing matters regarding properties in a foreign land from where they live or work. Specialsing in a different location can lead to job opportunities with international real estate companies for example. The average salary for this position varies in different countries.