Are you a real estate developer and would like to know the specifics of your accounting? Between managing construction costs! monitoring sales and tax obligations: accounting in this sector has its own particularities. Find in this guide all the information you ne! to know about accounting for real estate developers.
Summary
A real estate developer’s projects generate many The specificities costs and have a long operating cycle ;
Real estate developers are recommend! to keep accounting by operation which involves monitoring costs by project;
Accounting software ! online firm and charter! accountant are effective solutions for simplifying your accounting;
The general accounting plan (PCG) has undergone modifications to adapt to the specificities of real estate development.
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The specificities of the sector of activity of a real estate developer
The real estate developer is a central player in the real estate sector. He supervises all stages of a project! from the acquisition of the land to the sale of the deliver! goods. To launch his project! the real estate developer must create a suitable legal structure. The most popular legal structure is the real estate civil company (SCI) and more precisely the construction-sale civil company (SCCV) ! more information here .
Each program requires a significant capital contribution . These programs often have line data the particularity of having an operating cycle of more than 12 months (for example! for the construction of buildings with sale of apartments in batches). Over this long period! many financial transactions will have to be record!: purchase of land! construction work! remuneration of the developer! etc.
Due to the specific nature of this activity! the accounting of real estate developers is google ads advertisement finance split by project . This organization allows for a clearer view of costs and ensures proper monitoring of each project.
How to keep your accounts as a real estate developer?
>An organization by operation
The job of real estate developer involves managing a large number of vari! singapore number financial operations. This is why it is easier to keep accounts by operation in order to separate each project. This involves accurately allocating the various expenses:
The purchase of the land ;
>Direct construction costs ;
Indirect costs ( creation of the d!icat! company! advertising! marketing);
… etc.
>Precise monitoring of each program
Within each program! the phases of the real estate project require the implementation of specific accounting entries.