All You Need To Know About Accounting for Real Estate
How useful is real estate accounting? As we all know the Real Estate industry is one of the booming sectors for the United Arab Emirates. As stated by the Khaleej Times, in 2019, more than 35,000 residential units were completed, and that has marked the highest number delivered in a single year in Dubai. Based on developers' announced completion dates, 2020 is likely to be another record year for deliveries, adding to supply. Although the severity of the impact on Dubai's real estate sector depends on the duration of the Covid-19 outbreak and the extent of government measures, it's clear there will be some downside. Anyways to all of you out there, engaged with the Real Estate industry, it is always necessary to be aware of the changes and also advisable to take the guidance of professional experts who will assist in sustaining and growing your business. The professional experts of CDA Accounting and Bookkeeping Services LLC, provide outstanding auditing and accounting services for the real estate sector.
Before we move further to discuss the accounting requirements, let us take a quick look into the Life cycle of the Real-estate so that we have a better picture in mind.
In all these above-mentioned phases, the accounting records are to be maintained adequately for the proper sustenance of the industry however difficult it might be. The services of an accounting expert could also assist in the application of the relevant Accounting Standards like IAS 40 Investment property, IAS 16 Property plant and equipment etc. and also a number of new standards, interpretations or amendments to the existing standards. Some of them are as follows:
- IFRS 15, ‘Revenue from contracts with customers’
- IFRS 16, ‘Leases’
- IFRS 13, ‘Fair value measurement’
We understand you might not be an accountant, however, that doesn’t mean you should skip accounting work in your business. With our valuable and professional services of CDA Accounting and Bookkeeping Services LLC and your investment, we assure your business to achieve supreme efficiency and profitability.
Real Estate Industry & IFRS 15
Let’s see how the Five-Step Model in IFRS 15 could be implemented in the real estate industry.
After throwing light, on one of the main standards, let us understand the importance of accounting for real estate. There are a lot of benefits of availing the services of a professional expert for the maintenance of the accounting work in the business. Some of which are listed below:
1. Accuracy and Minimizing errors
When the accounting process is managed in-house, there are high chances of errors and this is where we could reduce the chances of error by using the service of a well-versed expert.
2. Well Managed Accounting Process
The accounting books will be maintained and carrying out this activity on a regular basis will help your business to know the level of revenue generation, and profits earned.
3. Detection of Fraudulent Activities by reducing the inherent risk
An expert accountant will always be able to analyze the loopholes in the current practices and procedures of the business. They would also assist, in providing steps to reduce the inherent risk.
4. Updates in Policies, Standards & Technology
A professional expert will always be up to- date with the amendments in policies and standards. They would also suggest the updates in any new accounting software which would help the business.
5. Hassle-free Tax Treatment
Paying off tax on time will help any business to earn a good reputation in the eyes of the law. By maintaining relevant documents that are audited, the well-versed services of an accountant will always be helpful in paying off taxes.
Why choose CDA?
Real estate stands as one of the dominating business segments in Dubai and demands to account to streamline the process accordingly. Our specialists of CDA are grounded with nonpareil accounting techniques and experience from the Big 4 Audit firms.
You may also read, Accounting the Backbone of Business
CDA Accounting & Bookkeeping Services LLC ensures full support on time, for assisting with CFO Services, Auditing Services, Accounting & Bookkeeping Services, Accounting Software services, Due Diligence Services, and Tax Filing & VAT Consultancy services, according to the convenience of our valuable clients. Clients are provided with customized business solutions. If you have any queries regarding the accounting for real estate, contact us; our experts are looking forward to your calls, to offer one-hour Free Consultation to clear off your doubts!