Your rental property is leased, and everything is going great – until you realise the financial year is coming to an end. Have you been keeping track of your financial reports? Is your accountant ready?
There is one certainty in life: you will have to deal with taxes. The more properties you have in your portfolio, the more complex your tax circumstances will become.
But don’t worry – hire a property manager! Property managers are perfectly situated to help you with your taxes and financial reports. In this post, we will look at how a great property manager can help you to manage your property portfolio, what financial advice they can provide, and four best practices to ensure a smooth transition at the end of financial year (EOFY).
What can a property manager do to help with my tax?
Of course, your property manager will help with your taxes – and even more. When it comes to managing your rental property, your manager will help you keep track all of your long-term rental yield, cash flow, expenses, taxes, fees, and even your depreciation schedule.
You may think you already have an accountant to take care of your taxes at EOFY – but what about all the steps you need to do before your accountant gets involved? Do you really want to be collecting all the receipts and invoices, keeping your financial reports up-to-date and ensuring it gets to your accountant on time?
These are all steps that can be taken care of by your property manager for you. Not only will your property manager keep your financial records and reports highly organised and well-maintained for you, they can also offer you advanced financial advice to help grow capital on your property or portfolio.
Why is financial and tax support important?
Taxes are important. But so is your time and money. Life shouldn’t be so complicated that taxes take up a lot of your time, especially if there is an experienced and knowledgeable property manager available who can compile your financial reports for you to pass on to your accountant. According to data from the World Bank, Australians spend on average 105 hours a year preparing and paying taxes.
Think about it. That’s more than four days of the year. What could you be doing for four days of the year instead of preparing all your documents for EOFY? Spending time with your family, learning a new language, enjoying a short break away, or even scouting a new property investment. Your time is more valuable.
And think about how much time you can save on financial research. Property managers at ARG can fall back on the knowledge and expertise of the ARG Group and provide you with a world of advanced financial and investment management advice at their fingertips.
Save yourself a lot of time with a great property manager who can support you on all financial matters related to your property investment. In turn, this will save you money on the back of their detailed financial record-keeping and investment advice.
4 tips and reminders for financial success
Organisation is key when it comes to ensuring financial success at EOFY. While you can leave most of the work in the hands of your capable property manager, there are a few best practices that will assist both you and your property manager with a hassle-free process.
- A great property manager like the ones at ARG will keep thorough and precise financial reports for your accountant. To ensure there are no hiccups along the way, make sure you provide your property manager with all the information and details they will need for record-keeping. This saves everyone time and money chasing additional information towards the end of the year.
- Don’t be surprised by your tax return. By checking in with your property manager on a regular basis, you can receive regular updates not only on your property, but also on your financial health throughout the year.
- Talk to your property manager about tax depreciation schedules. They can put together a comprehensive report for you, outlining building costs and asset values, as well as the annual value for their depreciation. This will help you with your long-term rental yields and capital growth.
- Don’t be shy about asking your property manager for advice on investment management. A great property manager, like the ones at ARG, have a wealth of knowledge about the property market, financial markets, and investment management. They can offer you advanced investment management to help you understand how you can build growth, reduce downtime and maximise returns.
It’s never too soon to start preparing for tax time. Keeping up-to-date reports in a secure location, tracking cash flow and expenses and monitoring depreciation schedules will make EOFY a breeze – especially if you leave it all to your dedicated and experienced property manager to maintain for you throughout the year. Say goodbye to chasing receipts and hello to a relaxed conversation with your accountant.
Maximise your returns with a property health check. Check in on the health of your property on a regular basis to guarantee it is working for you and explore new avenues to build growth. It’s also a great opportunity to assess your maintenance plans and rental appraisal. Find out more about ARG’s property or portfolio health checks.
Maximise your returns with a property health check.