SPV – PROPERTY COMPANY – PROCESSING DATA AND STATUTORY REPORTING

Processing data for a property company involves the following (list not exhaustive):

1. If a property agent is used:
2. Obtaining agency statements, converting them so they can be uploaded to an agency ‘bank account’ on the accounting software. The ‘conversion’ involves including the correct transactions required for gross and accrual-based accounting*.
3. Allocating transactions from the agency ‘bank account’ (ie, the agency statement) to the relevant:
   1. account codes (eg rental income, commission, repairs, etc), and
   1. to the relevant properties (using tracking categories)
4. If a property agent is NOT used:
5. Raise invoices for rent receivable per the rental contract, required for gross and accrual-based accounting*.
6. Allocate bank amounts received to the invoices – ‘split allocate’ bank transactions if amounts were deducted from rent received. (This would be if for example the tenant paid for an expense on behalf of the landlord, eg the tenant had something fixed at the property, or if the tenant is being compensated for other reasons.)
7. For property purchases/sales:
8. We need all the following:
   1. Completion statement
   1. Contract exchange date
   1. Mortgage statement
9. The information contained in the above-mentioned documents need to be correctly posted in the system, via journals and in a manner conforming with accounting standards and tax rules.
10. Any discrepancies from information contained in these documents, or from the postings done in the system, must be resolved.

The gross and accrual-based accounting mentioned in points above, are required by the accounting standards to which the SPV property company needs to conform. It also benefits the owners by providing information and controls for the following (list not exhaustive):

• Correct rent amounts have been received as per the rent agreements/contract, and rent was received in a timely manner.
• Any unpaid rent amounts per property, and for how long amounts have been unpaid.
• Correct commission amounts deducted by the property agents (as per contracts with the property agents)
• Costs incurred per property.
• Profitability per property, and the company.
• Total costs of property purchased.
• Mortgage amounts o/s per property.
• Interest and finance costs per property and company
• Profits from selling property.

EOACC can do of the above for you, and more – we can:

• Communicate directly with the property agent for the required information, and to discuss any discrepancies and additional information required for transactions on their agency statements.
• Communicate directly with the lawyers engaged with property purchases/sales, to obtain required information.
• Communicate directly with the mortgage providers (if they allow this), to obtain the required mortgage statements.
• Get bank read-only access so we can pull bank statements ourselves (if the company’s bank has this function available), to check the bank balance on the accounting software is correct. Or to upload bank transactions if necessary.
• Check that all the information and documentation required for statutory reporting has been received and inform you of any missing information in a timely manner.

Every month, after the accounting software has been updated and all queries have been resolved, a management report can be pulled. EOACC can prepare a report template on Xero to suite your needs, and we will show you how to use it yourself. This should help you a lot with real time management information and planning, and it will help us a lot when preparing annual accounts as a lot of the work would have been done already.