Our VP of finance, Holly Simmonds, has put together 5 tips for real estate owners or their accountants to keep in mind:
- GST/QST – With the 2015 change in GST QST requirements for co-ownerships and joint ventures, the government has replaced their large batch of dropped 2014 audits with follow up audits to ensure all such entities have their paperwork in order. Having the proper forms and agreements signed and ready is key.
- Receivables – When the economy is weak, a close eye on our tenants’ business is needed. The payment trends of tenants must be watched carefully, not to let the receivables fall behind.
- Cash management – True in any industry, budgeting cash flow and tracking results is key, reducing the effect of mismatched collections and expenses.
- Owner on Title – Pret-noms have been used over the years to acquire property. As changes occur in cadastre and Lot numbers and ownership, it is important to ensure the owner on title is the right one.
- Original cost – Are you keeping track of the details of acquisition costs? As we acquire, redevelop and renovate we need to keep on hand the details of all such changes to our cost basis. Keeping the “last 7 years” of documentation has its limits.