Being a property agency, managing a number of properties is not easy. You have rent to collect, have properties to maintain, also have land lords and tenants to deal with. On top of these, you have accounts to worry about. No doubt, your accountant is able to do bookkeeping and balance your book, but is that enough? Have you ever thought about finding a way to monitor the revenue, cost and profit for each property? As in certain circumstances, not every property will have same margin, some of them may even make a loss. If you can manage finance for each property separately, you will be able to find the loss making ones and focus on tackling the problem.
Are you wondering is there a way to do so? Yes, there is way, it is project accounting.
Project accounting consider each property as an individual project, whose revenue, cost of sales, invoicing, payable and receivable and so on and so force are recorded under specific property. Therefore, P&L can be produced individually. In the meantime, variance and margin can be calculated and analyzed easily to see whether profit target is achieved by each property. Here, project accounting is used as the tool for cost control for management to minimize cost and maximize profit.
If you think project accounting can help your business grow and improve you rmanagement, please don't hesitate to book a free consultation with us.