Real estate in the UAE has long attracted global attention and has now become a major industry in the country. However, local laws can make accounting in real estate companies a complicated process. It can become a real hassle to navigate the financial side of things without any guidance. So, hiring a specialist to manage your books can be a real game changer.
Understanding Real Estate Accounting in UAE
RERA (Real Estate Regulatory Agency) is the agency that regulates the property sector in the UAE. It operates under different government bodies in every emirate. In Dubai, it works under the Dubai Land Department (DLD) .
The UAE also follows the IFRS (International Financial Reporting Standards) 15, which is a model that standardizes financial reporting across the world. The rules can be difficult to understand for non-accounting individuals so this makes hiring an accounting in real estate companies a necessity for businesses who want to stay compliant.
What Are the Challenges of Accounting in Real Estate?
1. Handling multiple revenue streams
Real estate companies often have several streams of income at any given time (rentals, apartment leasing, management fees, property sales). This can make tracking and managing your books quite difficult without proper systems in place.
2. Keeping up with laws and regulations
The UAE has various laws surrounding VAT, corporate tax, and financial reporting. These laws are always subject to change, which can be easy to navigate with the help of an accounting in real estate companies . This also allows companies to avoid penalties and stay financially transparent.
3. Complexity in understanding real estate accounting
Real estate accounting requires niche, in-depth knowledge about topics like lease accounting, depreciation, cash flow accounting, and investment analysis. Incorrect reporting can lead to inaccurate financial statements, which can consequently affect tax liabilities. Meticulous bookkeeping when accounting for real estate transactions is key for managing diverse portfolios.
Benefits of Outsourcing Accounting for Real Estate Companies
1. Regulatory compliance
Failure to follow the outlined standards of reporting can lead to mistakes in tax returns, damage to reputations, and in some cases, penalties. Outsourcing your accounting to an external company can take the stress of staying compliant to all the laws and regulations. External accountants will stay updated on tax laws and make sure that your business stays on track.
2. Access to specialized expertise and software
Hiring experts that possess industry-specific knowledge about accounting in real estate transactions is an efficient way to ensure business success. They can recommend best practices that are tailored to your needs, and give you a bigger competitive advantage.
Outsourcing your accounting can also give you access to the latest software that can streamline processes and protect your data, making it much easier to monitor your progress throughout the year. Accounting software can often be expensive, so using them through an external company is an easy workaround.
3. Cost-effectiveness
By outsourcing their accounting in real estate companies can reduce their operating costs. Managing in-house accountants can be a tedious and expensive process, so getting expert, external help can really keep expenses down.
4. Focus on core activities
Real estate companies who outsource accounting can better focus on their core business activities instead of worrying about compliance and general financial administration. Putting accounting in real estate transactions into expert hands can free up resources which can be put towards generating revenue. This also grants peace of mind to the business leaders.
How A&A Associate Can Help Real Estate Companies
A&A Associate offers an expert accounting in real estate companies that can maximize your cashflow and improve your decision-making process. Here’s what we can do for you:
Accounting services for real estate
A&A’s accounting services for real estate offers companies help from expert professionals who can assess and organize business needs, select appropriate accounting systems, and handle all accounting-related functions. They also offer:
VAT Consultancy
Tax services
Bookkeeping
Management accounting
Internal audits
Bookkeeping services
If you’re looking to hire A&A primarily for their bookkeeping services, this is what you’ll get:
Account review
Data entry
Financial charts
Bank reconciliations
VAT compliance
MIS reports
Auditing services
A&A Associate’s auditing services offer real estate companies experts who are qualified to conduct statutory audits to fulfill the requirements of the management, government bodies, banks, and free zones. The UAE imposes an annual audit requirement on every company, making it essential to hire experts who can impartially assess the state of your business and provide recommendations if necessary.
Contact us today at +971 50 483 6190 or email us at enquiry@aaconsultancy.ae to get expert accounting, bookkeeping, and auditing services tailored for your real estate company.
