You’ve been dreaming of that long awaited overseas holiday for some time now. What is holding you back? Is it the Trust Accounting aspect of the business or is the whole thought of being away from the office too much to bear?
Licensee Holiday – What is That?
Most Licensees we speak with have been unable to take a holiday from their business for 5, 10, or more than 15 years because they feel that the business will fall apart without them.
In modern times, technology makes it very easy for us to have a holiday from our businesses providing the necessary steps are implemented in maintaining compliance under the proper supervision guidelines in force, Section 32 of the PSBA Act 2002. Penalties for non compliance range in the vicinity of $11,000 – $22,000 depending on which sections of the Act or Regulations are breached.
The following are some suggestions in relation to how you could best prepare your office and what are some of the things that you could implement to make sure your office is still standing when you return.
- Write to NSW Fair Trading
- Delegation of tasks in writing
- Prepare for an audit
- Implement the right technology
- Have a risk management plan
Write to NSW Fair Trading
This is a simple worded letter notifying Fair Trading that you, the Licensee will be absent from the business for (stated period) and what steps you have put in place to maintain proper supervision in the time that you will be away. A copy of this letter should also be held on file in the office.
Delegation of tasks in writing
Without doubt the people that you appoint in your time of absence will hold the appropriate qualifications and possess the necessary skills to manage the tasks required when running the trust account, following the correct daily banking procedures, marketing procedures, complaints handling and maintaining compliance in the sales and leasing process. This delegation should be clearly defined in writing between the parties and should be acknowledged by signatures of the licensee and parties involved. Copies should be held on file.
Prepare for an audit
If there is ever a time that you could audited in your office, it will be when you’re away. You will be able to safeguard yourself by simply carrying out the previous two steps but you must ensure that everyone is aware of where these documents have been kept in your office. Also follow our list of 10 Steps for Surviving a Fair Trading Audit.
Implement the right technology
There are many options available for implementing the right technology in your office. Email is unquestionably the cheapest and most effective form of communication. There are also other inexpensive ways to communicate with your staff which include conferencing and file/screen sharing.
a) Skype or Facetime*
For video/voice conferencing. Allowing you to hold face-to-face meetings and issue instructions to staff members.
b) Teamviewer or join.me*
Are both popular screen sharing tools which are free to download and simple to use. You can log into your office computer from anywhere in the world and be able to view and your entire system. This is an excellent solution for being able to view your non cloud based trust accounting software or accessing locally saved files.
c) Dropbox or google drive*
For simple file sharing. Great for larger files that are too big to send via email. These portals allow you to share saved documents and receive them anywhere in the world. This could be particularly useful for sharing photo images and previewing marketing campaigns.
The possibilities of technology are endless. Research prior to your departure and decide which option is easiest for you. Conduct a test from your home computer to see if connection can be established and practice using the software with your staff so that they are also familiar with the connection process.
Have a risk management plan
As the saying goes – if you fail to plan then you plan to fail. It’s a pretty straight forward concept. Arrange a meeting with your staff prior to your leave and collectively implement a risk management plan. Remember, if it can happen – it will!
If you’ve never constructed a risk management plan there are many free templates available for download from the internet. You will consider all possible risks to the business while you are away and rate them according to likelihood and consequence. After this you will decide what the appropriate action is for each risk: Avoid, Reduce, Transfer, Finance or Retain.
One of the main risks detrimental to any agency is partial or total loss of data.
Read our 3-2-1 Backup Rules to guide you through this process.
Maintaining trust account compliance during your leave will be the by far the biggest obstacle that you will face. If none of your staff possess the required skills to manage the trust accounting then read our article on How End of Month Angels Can Give You a Holiday from Your Trust Account.
We hope our suggestions open your mind to turning your dreams of taking a holiday into a reality. As a Licensee, how long has it been since you’ve taken a holiday? Were you aware of notifying Fair Trading? We’d love to hear your thoughts and comments.
*We have no affiliation with these companies. Please read the product description and decide if this is the best solution for your company
~ Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. She knows the legislation, and the requirements of running a successful Real Estate office because she practiced Real Estate herself for 15 years. Don’t trust just anyone with your trust accounting. Trust End of Month Angels and get back to what you do best – growing your business.