Click Here to Download PDF
Accounting for Property Developers
Some people think property development is as simple as sub-dividing a block of land and making a handsome profit. In reality, real estate development can include activities ranging from the renovation and the re-lease of existing buildings to the purchase of vacant land and sub-division for sale or building development. As a developer your role is to co-ordinate the activities and usually contract with the builders to construct the buildings at a fixed price.
It’s a complicated business and you need to finance the deal, obtain public approval, develop the building design and program the development process. You control the development and put together the marketing plan to sell the finished product. It’s challenging and while the potential returns are high, so are the risks. In the process, you may have to work with architects, town planners, engineers, surveyors, inspectors, contractors, leasing agents and solicitors along the way.
Given the risks and the importance of the financial aspects of each of your projects you need an accountant who understands the mechanics of your industry. Over the years, our team of accountants have mentored a number of property developers through the process and you can benefit from our experience.
STARTING IN PROPERTY DEVELOPMENT?
Starting a property development business is akin to building a house. You need solid foundations and the corner stone of the business is your taxation structure. It is a critical business decision and there are a number of options when it comes to business structures including sole trader, partnership, company and trust. Because of the risks associated with property development, asset protection is a key consideration so we sit down with you to discuss your family situation, your forecast level of profits and likelyhood of admitting new business partners in the future. Only then can we make a recommendation regarding the most appropriate structure for your business.
Your choice of accounting software is another brick in your business foundations. The wrong choice can prove financially disasterous and cause enormous frustration which is why we insist the software matches your business needs with your level of accounting skill. If you use a sophisticated double entry accounting program without intermediate accounting skills your records will amount to nothing more than a 'computerised shoebox'. In turn, this will defeat our objective of helping you minimise the cost of tax compliance. Poor records are one of the biggest causes of business failure and you need up to date, accurate financial financial records to make informed business decisions. Where required we will train you to use the right software to help you minimise your compliance costs.
As you know, to build a house frame you also need tools. When building your business we can provide you with a number of practical tools. Our start-up expense checklist will help you identify all your potential establishment costs broken down into categories including tools, equipment, IT expenses and marketing costs. These figures then automatically feed into a cash flow budget template that allow you to forecast your trading figures for your first year of operation. For a property developer, your van, truck or ute is arguably your most important business tool and you can download our Motor Vehicle Tax Guide from the resources section of our website. It details the alternative methods of claiming your vehicle expenses and explains the distinction between a business and private trip for a trades person. In addition, through one of our affiliate partners we can assist you with vehicle finance (chattel mortgage or lease) and get you fleet discount pricing on your new car, ute or light commercial van that could save you thousands of dollars.
MARKETING YOUR PROPERTY DEVELOPMENT BUSINESS
One of our biggest points of difference with traditional accounting firms is our marketing expertise. We can assist you with your branding (business name, logo and slogan) and where required, we can also help you with your digital marketing and social media campaigns.
Unfortunately a lot of property developers and trades people have websites that are nothing more than electronic billboards that list the who, what and where of the business. On the other hand, over the past few years we have worked with dozens of clients to help them create affordable, lead generation websites. If you need advice and direction with your website content including video production please contact us.
We'll introduce you to strategies like re-marketing, social media advertising and search engine optimization that can drive more visitors to your website. We'll make sure your website is responsive to mobile devices (click here to check your current website) and we strive to give you a serious competitive edge in your industry. The fact is, if you aren’t using some of these marketing tools and techniques in your business then you're probably not going to reach your full profit potential.
As you can see, we are not your typical accounting firm and we can do some financial modelling and prepare some ‘what if’ scenarios for each of your developments. We can also help you understand your numbers and unlock the profit potential in your business. Our approach is unique and our mission is to help you fast track your business success. Our team of property development specialists offer you a range of accounting, taxation and business coaching services including:
- Start-Up Business Advice for Property Developers
- Advice regarding the Purchase or Sale of your business
- Tools including the Start-Up Expense Checklist
- Templates for a Business Plan, Cash Flow Budget, Letterhead and Business Card
- Advice and Establishment of Your Business Structure
- Tax Registrations including ABN, TFN, GST, WorkCover etc.
- Preparation of Business Plans, Cash Flow Forecasts and Profit Projections
- Accounting Software Selection and Training – Bookkeeping, Invoicing, Quotes & Payroll
- Preparation and Analysis of Financial Statements
- Preparation of Finance Applications
- Bookkeeping and Payroll Services
- Tax Planning Strategies
- Assistance with your Marketing including your Branding, Corporate Brochure, Property Flyers etc.
- Assistance with your Website Development, Content and SEO
- Wealth Creation Strategies and Financial Planning Services
- Industry Benchmarking and KPI Management
- Vehicle & Equipment Finance (Chattel Mortgage & Lease)
- Monitoring and Controlling Labour and Sub-Contractor Costs
- Advice & Assistance with Pricing your Services and Claiming Motor Vehicle Expenses
- Recession Survival Strategies
- Advice regarding Employee Relations and Workplace Laws
- Business & Risk Insurances (Income Protection, Life Insurance etc.)
- Business Succession Planning
We are more than just tax accountants, we are business and profit builders who genuinely care about your property development business. In fact, we are passionate about your business success and strive to deliver practical, cost effective advice and marketing strategies to help you grow your profits. We service the accounting and taxation needs of a number of property developers and understand your industry.
If you’re looking to get your business off to a flying start or if you want a fresh pair of eyes to look at your business contact us today. You can take advantage of our FREE, one hour introductory consultation to discuss your business needs. You'll get an hour of practical business, tax, marketing and financial advice that could have a profound effect on your future business profits.
To book a time, call us today on (07) 3812 1745 or complete your details in the box at the top of this page.
Fusion Financial Group - Ignite Your Business and Your Wealth