At Coopers&Co, we’re proud to partner with The Property Institute (TPI) to offer specialised financial services tailored to the property management industry. Property management companies face unique financial challenges, including the need to balance income against annual budgets, manage service charges, and prepare for future expenses. By working closely with property management companies, we ensure that financial accounts are accurately produced, compared against budgets set at the beginning of the year, and used to calculate any surplus or deficit that can inform next year’s planning.
Our in-house expert, Karen Hasker, FCCA, brings extensive experience in property management accounting. She leads our team in delivering comprehensive financial solutions that align with the TPI’s best practices. This ensures our clients receive high-quality financial advice and services that help them navigate the complexities of managing both residential and commercial properties.
The Role of Budgets in Property Management
In property management, the annual budget plays a crucial role in guiding the financial decisions that impact the maintenance, operation, and improvement of properties. The budget, set by the managing agent at the start of the financial year, is a detailed forecast of the expected income and expenditure. This covers key areas such as service charge contributions, maintenance costs, and reserves for future projects or unexpected repairs.
At Coopers&Co, while we don’t set these budgets, we work with property management companies to ensure that the year-end financials are properly reconciled against these plans. This comparison is critical for assessing whether the property management has operated within the allocated budget or whether there are variances that need to be addressed. By producing detailed reports, we help our clients review their financial performance and identify areas for improvement in future years.
Calculating Surplus or Deficit for Future Planning
As the financial year progresses, it’s common for property management companies to encounter variations in their income and expenditure compared to the original budget. These discrepancies can result in either a surplus (where income exceeds expenditure) or a deficit (where spending outstrips income). Both outcomes require careful analysis and management to ensure the long-term financial stability of the property.
At Coopers&Co, we specialise in calculating these surpluses and deficits. A surplus indicates that income has exceeded expenses, which may allow the company to refund leaseholders or allocate funds to future improvements. On the other hand, a deficit signals that costs have outpaced income, necessitating careful financial planning for the following year to avoid escalating issues.
Working closely with clients and referencing best practices outlined by The Property Institute, Karen and our team ensure that accurate and transparent reports are produced. These reports enable property management companies to adjust their strategies, plan for future years, and manage the expectations of leaseholders and stakeholders effectively.
Ongoing Support and Financial Reporting
In addition to comparing budgets at the end of the year, we offer ongoing support throughout the financial year. This includes producing detailed financial reports, performing year-end accounts reviews, and assisting with any audits required by property management firms. We also provide insights on cash flow management and risk mitigation to ensure that property management companies are financially prepared for both routine and unexpected expenses.
Coopers&Co’s collaborative approach ensures that all financial data is presented clearly and complies with the regulations set out by The Property Institute. By partnering with TPI, we help property management companies maintain financial clarity and transparency, which is crucial in building trust with leaseholders and other stakeholders.
Whether you’re managing residential or commercial properties, Coopers&Co’s partnership with The Property Institute ensures that your financial management processes are efficient, transparent, and compliant with industry standards. With the guidance of Karen, we help property management companies navigate financial challenges, adapt to budgetary variances, and prepare for a prosperous future.