Accountant | Billy Costa Finance Inc

The Top Reasons Real Estate Landlords Need Accountants

Alice Wilson 08/04/202204/01/2023 Uncategorized

If you are a real estate landlord, you know that there are many things to keep track of. Between managing your properties, dealing with tenants, and keeping track of your finances, it can be a lot to handle on your own. That is why many landlords choose to work with accountants. They can help you manage your finances and make sure that you make the most money from your properties. This blog post will discuss the top reasons why real estate landlords need accountants.

They Help Keeping Rental Accounts

As a landlord, you are responsible for collecting rent from your tenants and paying any associated bills (such as property taxes or insurance). An accountant can help you keep track of all of your rental income and expenses to know exactly how much money you are making (or losing) each month. This information is valuable in helping you make decisions about your properties, such as whether to raise rents or make repairs. Additionally, an accountant can help you prepare for tax time. They can ensure that you are taking all of the deductions that you are entitled to, and they can help you file your taxes in a timely and accurate manner. This can save you a lot of stress come.

They Plan for Capital Gains Tax

If you are ever thinking of selling your rental property, an accountant can help you plan for capital gains tax. Capital gains tax is a tax on the profit you make from selling an asset. When it comes to real estate, the amount of capital gains tax you will owe depends on how long you have owned the property. If you have owned the property for less than one year, you will owe short-term capital gains tax (CGT). If you have owned the property for more than a year, you will owe long-term CGT.

They Help Claim Self-Assessment Expenses

Another reason to work with an accountant is that they can help you claim self-assessment expenses. If you are renting out multiple properties, you may be able to deduct a portion of your accounting fees from your taxes. This can save you a lot of money come tax time. Additionally, an accountant can help you set up a system for tracking your expenses. If you’re a landlord with rental properties, it’s crucial to have an accountant on your team. They can help ensure that everything is in order and that you’re taking all of the deductions you deserve. Consider why accountants are so important for landlords – and contact us if you need help finding the right one for your business.…

The bookkeeping experience for new entrepreneurs

Andrea Bell 13/12/201713/12/2017 Accounting

For most small businesses, whether physical or freelance, making money is great until you have to undergo the bookkeeping process. Keeping track of your finances can be a very tedious task for many businesses. When most people are starting out and receiving part-time incomes, they were not too concerned about it until it reaches the period of making tax payments.

Every entrepreneur gets the chills when it comes to payment of tax. It is painful giving away a percent of your hard earned money just like that. Unfortunately, you do not have much of a choice, either way, everyone else is also doing the same. The pressing questions are, how does one keep track of their expenses? Alternatively, what expenses qualify as write-offs? It also gets confusing when you are receiving money from several sources randomly throughout the week.

Tax submissions

Your taxes need not be scary as many presume. As long as you take your time to carefully do your homework, all will be good. When using a paper or pen or a computer for that matter, you need everything simplified. Take time to break down your sources of income. The breakdown should be on payments. Keep track of all your payments as they go. Similarly, track the expenses incurred during operations. There are several different types of expenses that deduct your tax time so follow every penny spent in your business. This helps you arrive at a net loss or profit figure. Remember to track down the number of hours invested into the bookkeeping each week. This is essential for determining an hourly rate if necessary. Several spreadsheets such as Excel can keep track of this.

Get help

Accounting classes on programs such as Excel can give you a head start when maintaining your finances. There are many bookkeeping apps and software today. However, a good number are quite complicated for simple folk. You can perform your financial accounting on your computer using Excel, provided you know what you are doing. Nevertheless, it is always recommended to hire the Exceptional Bookkeepers in Melbourne to do it for you.

Why do people like Excel

Those who started out doing their bookkeeping speak highly of Excel for its simplicity. In addition, one can personalize their worksheet or workbook with it. This program ensures that you use the best functions that best suit your business. Among the top functions are MIN, MAX etc. The figures assist in coming up with a table where you count your days, calculate a sum, and find out the lowest or highest figures. These functions can be set to assist in summing up your expenses and incomes, pointing out transactions, noting the days from invoice to payment, arriving at an hourly rate, among other ideas.

Things to consider

When carrying out personal bookkeeping, it is just as easy to get confused with the complications of adding up the figures. Always try to focus on simplicity. Not all businesses are similar, so if you can personalize your books to fit your business operational model, the better. If you are not confident in your ability to track income and expenses as well as the tax laws required to make your submissions do not shy away from seeking professional assistance.…