Real estate deals with property management and it is one of the rapidly growing businesses in Dubai. The RERA (Real Estate Regulatory Authority) of UAE deals with all the legal considerations associated with it. For a Real Estate Company, there are a lot of areas to focus on including the construction and property aspects. Accounting & bookkeeping tasks can be very tedious because of the large number of regulations by concerned authorities and huge volumes of transactions. Therefore, accounting for real estate companies needs to be done in a more organized way. The Dubai Land Department (DLD) has announced a huge growth in land transaction rates which points to the enormous growth of the real estate sector. From an accounting perspective, it must ensure a standard process to collect financial information is to be implemented for smooth functioning. Choosing the right accounting method and consistent filing & tracking system will help to create a well-defined database. The intended users of real estate accounting include:
* Real estate agency consultants
* Outsourced accountants to Real estate clients
* Owner of building construction firm
* Accounting and tax consultancy firms
* Investor and manager of residential sales
IFRS 15 provides a five-step model before introducing the accounting services for a real estate company:
You have to choose between two accounting methods to complete the bookkeeping - Cash basis or Accrual basis. These two methods use slightly different principles for recording the transaction. Cash basis accounting is a simple method to track transactions. You will make one entry every time physical cash is being transacted. Record it as income when you receive cash (example- someone pays you a security deposit) and expenses when you are paying the cash (example- you are giving payment to the supplier for repair works) Accrual accounting is a little bit more difficult than a cash basis. You will have to record at least two entries for every transaction. Record income when you are incurring it (example- you send an invoice to the tenant) and expenses when you incur them (example- you receive an invoice from the supplier).
You need to prepare a chart of accounts to record and organize your accounting journal entries. A chart of accounts will list every real estate transaction you are making. When setting up your chart of accounts, you must ensure to create different categories or accounts for different transactions. For example - you will have accounts called “Repairs and Maintenance,” “Insurance for buildings,” “Electricity charges,” and “Advertising Expenses”
CDA team consists of professionals who have decades of experience in Dubai-based accounting & auditing tasks and in-depth knowledge in Accounting our services in the real estate companies includes:
Setting up of leasing related information into accounting software comprising the following activities:
Entering accounts payable invoice into accounting software with an allocation of expenses to the different property include:
Handling the receipts from the clients and recording them in the system include:
Business advisory services emphasize on making strategies for the success and growth of a business. The advisors are a collection of business coaches, mentors and accountants. Services include:
CDA team recognises that an effective internal audit service can make a very positive contribution to the management in handling risk and the smooth operation of the business. Independent examination of the validity of the company’s financial records.
As a part of accounting services, it is necessary to analyse the process of manufacturing to maintain efficiency and productivity in functioning.
Tax payment is compulsory for any business in UAE as this revenue is used for the development of the country. A single fault in the accounting process may lead to a heavy business loss. So, individuals or companies must be extra vigilant while preparing a Tax Account. CDA provides:
CDA offers quality accounting services for real estate companies in Dubai and UAE. CDA team has wide experience in the real estate industry. Our qualified & dedicated professionals with an innovative and commercial approach to meet today's highly challenging business environment always proved CDAs expertise in this industry. Our services include Bookkeeping & Accounting, VAT Consultancy, CFO Services, Management Accounting and Internal Audit.
The modes in obtaining control of the real estate are direct acquisition, construction and leasing of real estate, under either operating or finance leases
Yes, The UAE national needs to maintain the accounting record for five years at least for VAT Purpose.
The fee income is part of the negotiated cost for the redevelopment of the property. The income should be recognised as a deduction from the cost for the redevelopment of the property.
As prescribed in the Commercial Companies Law and the Commercial Transactions Law businesses must maintain a daily journal and general ledgers according to their specific business requirements. The Commercial Companies Law made it mandatory that all businesses must maintain an original copy of all correspondences, letters and invoices issued or received. All evidencing documents are to be retained for a period of five years.
CDA experts are professionally qualified with ACCA and CMA certifications for providing services. Our tax experts can provide excellent consultancy services on your tax filings.
Our prices are in competitive nature, we charge 50% advance payment for all our services. Our monthly rates are based on accounting software used, company type, contract term, skill, experience and frequency of visits.
Our Accounting systems are based on the latest software available. Depending on customers preferences and needs we work with other systems too.
Yes, customised software’s are available to track PDC and operations of real estate.
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