أخر الاخبار

Real estate accounting explained

Real estate accounting

Companies own a variety of physical assets that can be touched or seen, such as buildings, computers and equipment, as well as a group of assets that cannot be touched or seen; Which are considered intangible assets, such as goodwill, patents, trademarks, and copyrights, and the value of intangible assets depends on the cost of creation and the long-term value associated with them, as well as how they affect the market. Land or buildings owned by people, which must be well managed by taking care of real estate accounting for buying, selling or even investing in real estate with the support of bank loans.
Real estate accounting
Real estate accounting

Use of real estate accounting chart

Real estate accounting is used to complete all types of real estate transactions from land sales, real estate sales and exchange, as well as the rental of these properties and their investments in order to identify profits, and the chart is used to summarize profit and loss accounts according to income and expenses, and it is important in the beginning to separate revenues from expenses and keep to related items by groups or numerical sequences; For example, accounts from 41000-41999 keep residential income information and this makes the process of accessing it easy. Among the accounts that should be used in accounting for real estate are the following:
  • Revenues.
  • Cost of sales expenses.
  • Salaries and wage expenses.
  • Advertising expenses.
  • Occupancy expenses.
  • Communication and technology expenses.
  • Tuition and fees.
  • Insurance expenses.
  • Professional services expenses.
  • other expenses.

Ledger preparation in real estate accounting

The real estate accounting ledger is a set of accounts that records, categorizes and summarizes various real estate transactions, where the sale and demand prices of real estate, as well as any commissions obtained and how they are broken down by agents and companies are recorded in the real estate accounting ledger, as it is a book similar to any ledger A general ledger, but it is dedicated to real estate, and it is prepared as follows:
  • Choosing the real estate accounting ledger format as follows: Choosing the real estate ledger software:
  1. Choosing a real estate ledger program: There are many applications that can be used as a real estate accounting ledger that are located on the smartphone, and it can accommodate complex transactions, record transfers, create budgets and income statements that can be included, and among these applications is Business Ledger or TimeLedger.
  2. Use of online or computer software: Computer software such as a basic Excel spreadsheet or software such as Quicken, QuickBooks, or MRI Software can be used if smartphone applications are not desired.
  3. Use of old ledger: Pen and paper can also be used to complete real estate accounting transactions by utilizing all accounts and financial transactions kept in records.
  • Determine the items that must be included in the real estate accounting ledger. These items are divided into at least four main columns, including:
  1. Date column, which means the date of completion of each transaction.
  2. A column for commissions, showing the commission paid, and the percentage of profit from it.
  3. Column showing properties of properties that have been bought, sold and pending.
  4. A collateral column, to record the money that the buyer gave the guarantee when purchasing the property.
  • Separate open lists from closed lists in the real estate accounting ledger.
  • Use a tool to distinguish the available real estate from the available real estate.
  • Record and update transactions instantly, to avoid forgetting any transaction.
Comments
No comments
Post a Comment



    Reading Mode :
    Font Size
    +
    16
    -
    lines height
    +
    2
    -