You're new to property accounting. What are the most important things you need to know?

2 Property Types

The next thing you need to know is the different types of properties that you might encounter as a property accountant. These include residential, commercial, industrial, and mixed-use properties. Each type of property has its own characteristics, such as lease terms, tenant mix, operating expenses, and depreciation methods. For example, residential properties usually have shorter lease terms and higher tenant turnover than commercial properties. Industrial properties usually have lower operating expenses and longer depreciation periods than residential properties. Mixed-use properties usually have a combination of residential and commercial units, which requires more complex accounting and reporting.

3 Accounting Software

The third thing you need to know is the accounting software that you will use to perform your property accounting tasks. Accounting software is a tool that helps you record, organize, analyze, and report financial data. There are many accounting software options available in the market, but you should choose one that suits your needs and preferences. Some of the features that you should look for in accounting software are: ease of use, customization, integration, security, and support. You should also consider the cost, functionality, scalability, and compatibility of the software.

4 Property Reporting

The fourth thing you need to know is the property reporting that you will produce and deliver as a property accountant. Property reporting is the process of preparing and presenting financial statements and other reports that show the performance and condition of the properties. Property reporting is essential for decision making, compliance, and communication. Some of the common property reports that you will create and distribute are: income statements, balance sheets, cash flow statements, budgets, variance analyses, rent rolls, occupancy reports, and tenant ledgers.

5 Accounting Standards

The fifth thing you need to know is the accounting standards that you will follow as a property accountant. Accounting standards are the rules and guidelines that regulate how financial information is recorded and reported. Accounting standards ensure consistency, comparability, and reliability of financial data. There are different accounting standards for different jurisdictions and purposes, such as GAAP (Generally Accepted Accounting Principles), IFRS (International Financial Reporting Standards), and tax accounting. You should be familiar with the accounting standards that apply to your properties and comply with them accordingly.