I have a new client that is fairly small that runs a letting agency
Just wondering how do others go about preparing them?
Does everyone reconcile the client account? Some i have heard do as although it may not be the compay's funds the company still has an obligation to pay those to landlords?
The client has no bookeeping software. so have to manually reconcile the bank on excel which is a big job in itself.
Any advice would help!
Thanks
Replies (6)
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Look at the front end system that they will inevitably use. That will record the tenant payments, deductions and landlord payment. Some can reconcile the client account.
The regulatory body (ARLA?) will want evidence that the client account and deposits are reconciled.
The client account should be reconciled regularly or how do they prepare accurate statements for the landlords and deduct and pay across the correct management fees. If they not doing this I'd not be touching them with a barge pole.
If your client is registered with ARLA, then I suggest you (and they) read the client account reporting rules:
http://www.propertymark.co.uk/working-in-the-industry/member-requirement...
They can’t be ARLA members if they don’t do regular client account reconciliations because they would have been expelled by now for failure to provide accountants’ reports confirming, inter alia, their compliance with the requirement to do so.
You are right. Membership of ARLA is not mandatory. They seek to convince the public that doing business with their members is the thing to do because there are checks and balances on their members’ integrity. My understanding is that it’s a struggle when, even if they manage to create awareness, the chief factor for many is the price.
Very similar to the accountancy profession in some ways.