Why do you need to prepare property accounts?


Author : Mary-Anne Bowring

1. Legal and Regulatory Compliance.

In England and Wale, preparing property accounts is essential for the following reasons: English accounting standards, such as UK Generally Accepted Accounting Principles (UK GAAP) or, if applicable, International Financial Reporting Standards (IFRS) require the appropriate accounting treatment of property assets. Should property companies over a certain size fail to comply with these standards they can legal penalties as well as regulatory sanctions.

2. Financial Reporting.

Property accounts are an important part of financial statements, such as the balance sheet and income statement. They provide all of the homeowners within a block with essential information about how their block is performing and where their money has been spent and/or saved. It also allows for budgeting going forward.

3. Asset Management

Properly maintained property accounts can aid with the management of property assets. The accounts provide a snapshot of the value, condition, and performance of a property. This allows all of the block owners to make informed decisions about maintenance and equipment renewal.

4. Risk Management.

Property accounts help identify and keep on top of issues with property assets such as depreciation, guarantee expiry, legal disputes and statutory liabilities. Effective risk management ensures the protection of property assets and the block’s overall financial well-being.

Service Charge Sorted

Ringley Group’s servicchargesorted.co.uk has been set up to provide management services to the freeholders of blocks throughout the UK. The preparation and filing of accounts is just one of the services that it provides, all for a low fixed fee.

Why not go to servicechargesorted.co.uk for further information or call us on 020 7267 2900? We look forward to hearing from you.

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