Do you own a multi-unit property? If you do, then chances are you have an Owners’ Management Company (OMC) to run it. OMCs are brought in when a multi-unit property, such as an apartment block, requires continual upkeep and maintenance. It is usually a holding company run by directors who are also owners of the apartments and they are responsible for collecting service charges, maintaining common areas and managing the sinking fund.
Sinking funds, or Building Investment Funds, are important in the business of property management. They ultimately act as a rainy-day fund that can be dipped into for the purposes of property refurbishment, maintenance and improvement. However, in 2018, the SCSI reported that under 25% of multi-unit developments (MUDs) have adequate sinking funds. It is the OMCs responsibility to manage the fund correctly while also managing cash reserves, service charges and assets. Sounds like the job of an accountant, right? It is, but more often than not the job will fall into the hands of someone sitting on the board who happens to volunteer.
OMCs need cost-effective professional accounting services
As in the case of not-for-profits, these volunteers are not getting paid, but they have to do the accounting for a couple of years while sitting on the board of the OMC. Most of the time they are not qualified for the job or particularly interested in doing the job, and the fallout of this can leave the property vulnerable to disrepair, becoming degraded, posing health and safety risks while also devaluing the property for when the time comes to sell. However, hiring a full-time accountant is expensive, so what can OMCs do?
Outsourced accounting with Beyond
So you can’t afford a full-time accountant, but you also can’t afford for your property to lose value due to unintended negligence. This situation may seem like a catch-22, but it is possible to benefit from professional accounting services without running your budget dry. At Beyond, we offer outsourced accounting services to organisations so they can make smarter financial decisions, eliminate the risk of errors, automate tedious accounting processes and recognise valuable opportunities. But what does this look like in practice?
Your tailored outsourced accounting package
The primary advantage of outsourced accounting is the fact that you receive the expertise of a full accounting team for a fraction of the cost. Our outsourced accounting package can include everything:
- bank reconciliations
- management accounts
- supplier payments
- secretarial compliance
- tax advice
- credit control
- business intelligence
- systems expertise
Some of these might be done on an annual cycle (for instance, annual accounts and company secretarial), some on a quarterly cycle (for instance, CFO and advisory services), some a monthly cycle (for instance, management accounts and supplier payments), while others will be based on a weekly cycle (for instance, reconciliations and credit control).
We will work with you to design a package that suits your specific needs. Perhaps you want to keep your in-house accountant but would like us to check their work and offer strategic business insights? No problem! Typically, we find that our OMC clients greatly appreciate our monthly bookkeeping service and quarterly insights from a highly experienced CFO. The bookkeeper will arrive at your company for a couple of hours every month, just to keep their records up to date, and the CFO will focus on results and set projects for the management team on a quarterly basis to make sure you are on route to where you want to be.
Whatever you decide you need, this will be pulled into a package with a fixed monthly cost.
Typically, we find that our OMC clients greatly appreciate our monthly bookkeeping service and quarterly insights from a highly experienced CFO.
Want your OMC to use accounting software?
Xero is THE modern accounting software for smart businesses who want to automate processes and get real-time financial information at any time and from anywhere. If you decide you want to start using Xero, we can get you set up in no time at all and you’ll immediately experience the benefits. As Ireland’s no.1 Xero partner, we have the expertise to make sure you get everything you need out of this fantastic software. The application itself is designed so that even non-accountants can use it, so your management team will be able to easily check reports that show real-time data so they can make more informed decisions.
Xero has hundreds of add-ons, with some all-time favourites being Chaser, AutoEntry, GoCardless, Futrli, OneStop Reporting and WorkflowMax. There are many to choose from, but these applications all have one thing in common – they are designed to make your life easier. Whether it is chasing rents for you, automating the reconciliation of supplier payments or automatically processing complex documents with optical character recognition, Xero’s add-ons further streamline your accounting process so that you can spend more time focusing on what you do best.