Points to Consider Before Hiring Accountants for Landlords

Posted by Amit Gupta on November 25th, 2019

Instead of relying solely on traditional pension, if you are planning to become a buy-to-let investor, it is important to hire an accountant or a financial wizard who can share crucial financial advice and info when you plan to become a property landlord. Hiring specialised accountants for landlordsis the best decision you can take to ensure excellent results from your new venture. If you are sceptical about this decision, allow us to give you the best three reasons why hiring accountants for landlords is a great idea.

Maintaining Rental Records

It is very important for a landlord to have rental accounts in perfect order as it will help him judge if his buy-to-let business is successful. It is very easy to lose all track of inventory charges, tons of paint, etc., along with other expenses or an occasional missed rental payment slip. Hiring an accountant will help keep a tab on every expense and income giving an accurate picture of your business. The accountant will collect the information, compile it and then convert into meaningful rental accounts.

Easy Access to Real-Time Financial Information

These days, accountants make use of latest and sophisticated software that always helps them in getting a clear financial picture of the business. Having this critical information at fingertips makes taking decisions quicker and easier. If your enterprise is showing losses, you can make quick decisions to change the situation. Decisions like whether enough rent is being charged, too much is being spent on renovations, improper budget set aside for repairs, etc., can be done easily because as they say, Knowledge is Power. The accountant hired must help the landlord learn more about his business health so that well-informed decisions can be taken.

Capital Gains Tax Planning

Even if a property has been purchased with the intention to put it on rent, there may come a day when a decision to sell it is taken. It is significant to note here that the property that is not primary residence is subject to Capital Gains Tax. In such a case, a share of the profit enjoyed from this endeavour is taken by the government. The accountant hired for the purpose can help planning for such a possibility.

About the Author:

Amit Gupta, Director, Allenby Accountants.

Allenby Accountants is an independent accounting firm, located in Uxbridge, West London. We are accountants, business advisers, offering financial services and helping you to achieve your business ambitions. Our offered range of services include accounting, bookkeeping, tax management, VAT management, tax planning, Inheritance tax, capital gains tax issues, succession planning, etc. We specialise in offering services to sectors like medical & healthcare, retail industry, professional services, property & construction industry, charity and not-for-profit organisations and more.