Your residential property investment is a business - and like all good businesses, you need to track your property investment expenses to maximise your return.
The best gift your business can give you is a decent tax return, which makes keeping track of your expenses a must.
Unless this is an ingrained habit, it's easy to fall behind with paperwork or even recording what the expenses were in the first place.
You need to create a system that suits you and your Accountant, then stick to it. Don't leave it until the night before your annual tax appointment. Remember that by tracking your property investment expenses, it'll also save your money on your Accountant's fees.
Remember the Taxman can contribute $1,000's to your expenses if they are recorded correctly so putting in a good system to track your expenses is essential.
But how do you record the information that comes in from owning and investment property? Well, that old shoe box or a cheap concertina folder could become your best place to keep receipts. Or alternatively, you can use a simple Excel spreadsheet to record expenses. This can simplify your life and investment property business. Where possible, scan documents as a backup. There are some great phone apps that can scan documents in high resolution quality. You can then email them to yourself and file in a folder for your property.
All of our Smarter Property Investing clients receive a FREE copy of our comprehensive property investment spreadsheet. From the start of their investing journey this helps keep up-to-date records of their property investment expenses.
To help you on your journey into property investing, I'd like to offer you a complimentary copy of our eBook How to Reduce Your Accounting Fees. Just click here and pop in your name and email to have the eBook sent to your inbox.
Remember, when it comes to tracking your expenses, keep it simple and stay on top of things. You'll thank yourself come tax time.
As always, if you have any questions, leave a comment below.
Until next time,
From the desk of Christine.