So you are thinking of breaking free and setting up your own Real Estate Office?
Good on you!
You may very well be wondering what basics you need to set up to get started.
This month we are bringing you two articles with some tips on some of the Real Estate and Trust Accounting basics you need to get started.
Start with the Basics
It’s important to know when starting out you don’t need to have all the bells and whistles.
We are big on integrations helping to make your Property Manager life easier.
But remember you don’t need everything to get started.
Learn to walk before you run.
Trust Accounting & General Accounting Software
The good news is, most Trust Accounting software has some of the basics you need until your rent roll is up and running and supporting your business, or your sales start coming through.
So let’s look at Trust Accounts.
If you are a Property Manager running a rent roll and sales in NSW, you will need two Trust Accounts. There are many great Trust Accounting software programs on the market so do your research about which best suits your needs.
For your everyday finances, you’ll also need general accounting software. Without a doubt we recommend Xero. Xero is the leading online accounting software for business and can connect your bank, accountant, bookkeeper and other business apps all in one place. Plans start from $13.50 a month with heaps of handy features enabling you to invoice, pay expenses, manage payroll, super and reporting all in one place. New users can start with a 30-day free trial.
Statutory Trust Accounts
As a new agency, you need to ensure that you set up a Statutory Trust Account.
We cannot count how many clients over the years who use business accounts. This does not meet the legislation.
You must have a corporation licence and be a Class 1 Licence Holder if you are in NSW.
A GST Handy Tip
Even though you don’t need to register for GST until you have reached $75,000 in a rolling 12 month period, we highly recommend doing this at the commencement of your business. Then if you go over the threshold, you are registered and ready to go.
Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. Jane knows the legislative requirements of running a successful Real Estate office through her 23 years’ industry experience. Don’t trust just anyone with your trust accounting. Book an appointment with an End of Month Angel today.