Accounting Services for
Real Estate Businesses
Analyze project costs, manage cash flow, plan taxes, and prepare financial data to fuel the growth of real estate developers and property businesses.
- Know Costs/Profits Per Project
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- Accurate Cash Flow Management
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- Statements Ready for Project Finance
Control Project Costs
Prevent Profit Leaks
Transform complex financial data into reports that help developers make confident decisions for their next phase of investment.
Is Your Real Estate Business Facing These Problems?
Ballooning Project Costs
Unable to control construction and marketing budgets; profits disappear.
Sunk Capital
Funds are tied up in land and unsold inventory that cannot be cleared.
Sales Made, but No Cash Flow
High presales, but revenue cannot be recognized yet, causing tight cash flow.
Unknown Profit per Project
Expenses are mixed up, making it impossible to know which phase is truly profitable.
Hard to Get Loans
Financial statements don't reflect potential; banks deny Project Loans.
Difficult to Expand
Lack of proper Feasibility studies before launching new phases.
Why Does Real Estate Need Specialized Accounting?
Property development involves a Long Project Life Cycle, massive capital investments, and multiple cost categories that must be correctly allocated. Without accurate, in-depth accounting data, executives cannot manage cash flow effectively, which can lead to disastrous investment decisions.
Key Metrics (KPIs) Real Estate Execs Must Know
We turn back-office numbers into an accurate navigation compass for your business.
ROI & IRR
Return on investment over the project's life
DSCR
Debt Service Coverage Ratio (for Project Finance)
EBITDA
Earnings before interest, taxes, and depreciation
Project Cost Structure Analysis
We break down every cost dimension to prevent budget overruns.
Manage Your Projects
With Financial Data
A developer's decisions must rely on accurate data, not gut feelings. We analyze data to answer critical questions:
- Compare Actual Costs against Budgets to identify leaks.
- Which project or phase yields the best Gross Margin?
- In the current situation, should you delay investment or launch a new phase immediately?
- Evaluate Feasibility Studies and track ROI throughout the project lifecycle.
Profit per Project
Analyze profit separated by project for stable business expansion decisions.
Need Project Finance?
When applying for a Project Loan, banks primarily consider your Debt/Equity structure, Cash Flow Projections, and DSCR. Our Loan Advisory team helps prepare these statements and data to look highly professional and appealing.
High Sales, but Short on Cash?
Many projects have high presales, but cash flow is tight because funds are tied up in construction and payment terms are misaligned. Our CFO Advisory service steps in to manage liquidity so the project can move forward without a hitch.
Plug Leaks with Internal Auditing
Real estate businesses involve massive procurement and disbursements. Implementing a good Internal Control system helps reduce errors, prevent fraud, manage contractor budgets, and increase transparency so shareholders can verify every step.
Comprehensive Services SiamAccount Provides
Which Real Estate Sectors Is This For?
Property Developer in Chiang Mai
The client was developing the first phase of a housing estate and faced tight liquidity. SiamAccount’s CFO team stepped in to analyze actual costs versus the budget. We discovered that construction and marketing costs had ballooned beyond projections. We helped restructure their finances and created a new cash flow projection, allowing the company to manage its capital and adjust pricing strategies for Phase 2. This safely recovered their Gross Margin.
Frequently Asked Questions (FAQ)
When should a real estate business recognize revenue?
Generally, revenue is recognized when the ownership is completely transferred to the customer, not on the day the reservation or down payment is made.
How are Project Costs recorded?
Direct expenses arising from project construction, such as land, materials, and labor, are grouped as 'Construction in Progress' and recognized as the Cost of Goods Sold upon ownership transfer.
How are pre-launch expenses, like advertising, accounted for?
Selling and marketing expenses are considered period expenses when they occur and cannot be capitalized into the project's cost.
What financial statements are needed to apply for Project Finance?
Besides standard financial statements, banks want to see Feasibility Studies, Cash Flow Projections, and your Debt-to-Equity (D/E) Ratio.
Should a Developer have an Internal Audit system?
It is absolutely essential. The process of disbursing funds to contractors and purchasing materials involves massive amounts of money. Without a good audit system, costs can easily balloon and profits vanish.