The financial side of any business is crucial, and having an effective and well organised accounts team will help ensure a smooth running process. So why should it be any different in property management?
Here at Cornerstone Property Management, we pride ourselves in having developed a system of bespoke processes, which will cover all financial and administrative requirements.
Managing service charge accounts and other types of administration accounts in the property industry is a specialist area that requires expertise and an understanding which Cornerstone possesses.
We can guide you every step of the way in making sure your properties’ accounting issues are managed with the utmost care and attention. Whichever accounting service for property management you require, we will be able to help you.
The following section outlines accounting services for the freeholders including collection of your ground rent and buildings insurance, plus all relevant expenditure which will need to be budgeted for. As you are aware, you will not be invoiced with any of these charges; they are all covered by the leaseholders of the property.
Service Charge Budgeting
We review all forthcoming service charges and produce a draft budget which is then presented to you for approval prior to the issue of any formal demands. Our accounts team then continually monitors the service charge expenditure and negotiates contracts to suit the financial needs of your property.
This ensures that the income and expenditure is consistently monitored, avoiding any substantial changes to service charge demands from one year to the next. It also provides leaseholders with confidence and a comfort that their demands will remain the same each year.
Service Charge Preparation & Collections
The software and vigorous processes used for monitoring and accounting ensure a fast and reliable service. Monies are retained in a Barclays trustee account where the funds are ring fenced, reconciled and protected.
With daily accounting and monitoring we ensure that all funds are reconciled and accounted for every day. This builds a real time understanding of all finances thus avoiding any surprises at the end of the year.
From time to time it is necessary to issue reminders to those that have fallen behind in making payments to the service charge or reserve funds. We have a process to ensure that any arrears are recovered quickly and efficiently, with any costs being recovered directly from the debtor.
To manage a property efficiently, a healthy service charge pot is required. Without funds a property can quickly become unsightly and fall into disrepair. Rest assured that our robust processes rapidly address this to help ensure prevention rather than cure.
Company Secretarial Services
Why get in knots over the annual filing, residents’ memberships, calling meetings and ensuring the company is running correctly and in accordance to the current company law?
A company is legally required to appoint a Company Secretary (under Section 283 of the Companies Act). Although the Company Secretary’s responsibilities will be determined largely by the policy of each client, they will generally include the following:
Many RMCs and RTMCos still continue to include incorrect service charge transactions in their accounts. This may mean that corporation tax liabilities, if any, are wrongly calculated. Where this is the case, those responsible for self-managing properties are neglecting to follow the statutory trust concept relating to service charge transactions. Cornerstone can take over and manage this as an additional service on your behalf.
These are part of our services which we believe set us apart from the competition.