Have you done your EOFY audit? A guide for commercial property owners

News & Insights
News & Insights
Have you done your EOFY audit? A guide for commercial property owners

With the start of the new financial year, it’s important for commercial investors to roll up sleeves and get proactive. Now is the perfect time for you to dive into a thorough review of investments, and take the necessary steps to make sure all of your finances are in order.

Here are a few crucial tips to keep in mind as you start the new financial year:

Take the time to review and organise all financial records related to your commercial real estate investments. This includes rental income, expenses, invoices, receipts, and any other relevant financial documents. Maintaining well-organised records will facilitate the tax preparation process and ensure accuracy when filing returns.

Engage the services of a qualified tax advisor or accountant who specialises in commercial real estate. They can help you navigate the complexities of tax laws, identify potential deductions, and ensure compliance with relevant regulations. Seek their guidance to maximise tax benefits and optimise your financial position.

Identify and claim all eligible deductions associated with your commercial real estate investments. Common deductions may include property management fees, repairs and maintenance expenses, mortgage interest, insurance premiums, property taxes, and depreciation. Work closely with your tax advisor to determine which deductions apply to your specific situation.

Evaluate any capital improvements made to your commercial properties during the financial year. Capital improvements, such as renovations or upgrades, may qualify for tax benefits, including depreciation deductions. Consult with your tax advisor to ensure you are correctly accounting for these improvements and maximising the available tax advantages.

Review and update the depreciation schedules for your commercial properties. Depreciation allows you to deduct the costs associated with the wear and tear of the property and its assets over time. Ensure that your depreciation schedules are accurate and reflect any changes in the property’s value or assets during the financial year.

Assess your existing lease agreements and consider any necessary updates or renewals. Review the terms, rental rates, and lease expiration dates for each tenant. This evaluation will help you identify opportunities for rental increases, lease extensions, or adjustments to align with market conditions.

Take the opportunity to plan for the upcoming financial year. Set financial goals, review your investment strategy, and consider potential acquisitions or dispositions. Assess market conditions, property performance, and make any necessary adjustments to optimise your commercial real estate portfolio.

Our Asset Management team can provide support that ranges from portfolio strategy through to day-to-day operations, delivering effective Asset Management that drives strong property returns. Find out more and get in touch with us today: https://broadwayproperty.com.au/contact/