Client Account Administration
PRS assumes responsibility for firms such as Law Firm & Estate Agent. PRS allow you to service your clients monies while eliminating the time your team spends coordinating these efforts.
This will put the focus on what is important and allow firms greater flexibility to manage their business. The Accounts Rules will also be simpler and easier to understand. The Accounts Rules will be supported by an online toolkit which will comprise of guidance and case studies to aid compliance.
Estate & Letting Agency in England & Wales has recently simplified the Accounts Rules: by focusing on key principles and requirements for keeping client money safe, including:
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Keeping client money separate from agency money
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Ensuring client money is returned promptly at the end of a matter
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Using client money only for its intended purpose
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Proportionate requirements for firms to obtain an annual accountant’s report
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PRS assures you of NRLA & ARLA compliant bookkeeping and accountancy services to VAT returns and monthly/quarterly management accounts we can provide support and ensure your client’s compliance requirements are met.
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Your accounts can be freely accessed by your reporting accountant to automate regular statutory accounting, audits and inspection activities
Our Services Include:
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Maintain Separate Bank Accounts
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Class Tracking
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Update Books Regularly
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Use Recurring Invoices
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Track Expenses by Property
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Charge Management & Rental fees
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Reconcile bank accounts
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Record income
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Categorize expenses
Key Practices for Client Accounts Administration
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Our Services for Estate Agents in UK
We offer a full range of services tailored to meet the needs of rental business owners. Our goal is to make your bookkeeping, tracking, and reporting simple and accurate. Here’s how we support rental businesses:
Tracking income per property or asset is important. You must also assign expenses in the right way. Doing this manually is hard and often inaccurate. This is why many owners use rental business accounting software to manage their operations.
Client Account Procedures
Client Money
Agents must keep client money (rent, deposits or other money collected by an agent for a landlord) in a separate client account and be able to identify the money allocated to each client, applicant, tenant or ex-tenant. The money cannot be used for any other purpose and must be forwarded to the relevant party as soon as administratively possible when it is due to be returned. The client account cannot be used for the deduction of fees unless the agent has consent from the person concerned.
Rent Processing
An agent must process rent to the landlord once it has been received. It should be passed on as soon as administratively possible after the money has cleared and sent to the landlord in line with the agent’s terms and conditions.
A landlord should receive rental statements in line with the agreed agency terms and conditions. These statements will detail the amount received, deductions, retentions, VAT and the balance to be forwarded to the landlord. It is a legal requirement to keep all invoices for six years for tax purposes.
Paying Contractors
An agent should only instruct contractors when the funds to pay for this are available, or will be received shortly. It is not sufficient to rely on the next rental payment to pay contractors.
However, there may be circumstances when an agent has to instruct a contractor in a genuine emergency when funds are not available. Agents can, without consent, retain money from the rent on a monthly basis to accrue funds for future agreed works.
Rent Arrears
If tenants are late with rental payments, an agent will write to them at set internals to remind them the rent is due and they are in breach of their tenancy. Agents should ensure they are aware as soon as possible of any rent arrears and should keep the landlord informed. They should follow the process for chasing rent arrears as per their terms and conditions. Agents must make sure they do not harass tenants particularly if arrears are being chased over the phone. A tenant may be charged interest on late payments so it is essential that accurate records of payments, part payments and arrears are kept.
Deposits
Deposits must be held in line with the requirements of the Housing Act 2004 for ASTs (see Tenancy Deposit Schemes). Since April 2007 deposits must be held in an insurance scheme or a custodial scheme if there is an AST.
Overseas Landlords
The Finance Act 1995 places obligations on agents regarding overseas landlords’ tax. Overseas landlords must register with the Personal Tax International (PTI) department and obtain an approval number. If an agent does not receive an approval number from the PTI department, they are obliged to deduct an amount equivalent to the basic rate of tax from the rental income and account to HMRC on a quarterly basis.
HMRC can withdraw an approval number if the landlord fails to submit their returns in line with requirements. If a tenant pays the rent directly to an overseas landlord and does not have an approval number, the obligation to account to HMRC falls to the tenant. Overseas landlords must still submit tax returns to HMRC and pay any income tax due, although they may be able to offset some expenses.
Why Choose PRS Smart for
Management Reporting?
At PRS, we specialize in providing comprehensive real estate accounting services tailored to your needs. Whether you require rental accounting, property accounting, or real estate accounting services, our team of experts is here to assist you. With over 20 years of experience, PRS Smart is your trusted partner in the UK real estate market, ensuring your financial records are handled with precision.
Our dedicated professionals are well-versed in property management accounting, offering you a clear financial overview of your real estate assets. Additionally, we provide AP/AR, lease administration, rental property accounting services that helps you effectively manage rental income and expenses. Let PRS be your reliable partner, supporting your real estate business and guiding you towards making informed financial decisions for your property ventures.
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