Accounting for a property development company

Professional accounting for property development businesses.

Our accounting office EFEKTA is a trusted partner when it comes to accounting services for property development companies. Entrust us the bookkeeping, tax returns, preparation of declarations and contact with the authorities – Social Insurance Agency, Tax Office, Office of National Statistics – and we will ensure compliance with the regulations and clear recording of costs and financial results. We offer the comprehensive service that every property development business needs, from the first investment steps to the settlement of the entire development project.

Development company accounting – who are we?

As an experienced accountancy firm specialising in service for property developers, we combine accounting, legal and tax expertise to offer an individual approach to each and every project. We handle the entire accounting process – from the start of a development project, through the recording of production costs to the determination and presentation of revenue and expenses and the financial result. We provide real support with bookkeeping, decision-making and ensuring compliance with the applicable NAS rules.

 

18 lat	100%	+ 500	+ 500
of experience	of professionalism	serviced companies	satisfied customers

 

What do we offer?

Accounting for the developer – an investment in financial security

We offer full accounting support for property development companies and sole traders operating as developers. Our services range from day-to-day processing to preparation for new development projects – from registering a business to establishing a billing structure. We assist in tax optimisation, taxation form selection, recording production costs and calculating income from the property. We know the reality of the industry and we know how important accuracy is in determining the outcome of a development project.

Why our development accounting?

By choosing EFEKTA, you benefit from the following:

1. 18 years of experience in providing service to investment and property companies.
2. Guaranteed compliance with regulations, including NAS and the Accounting Act.
3. Knowledge of the specific nature of revenue and expense accounting in property development projects.
4. Full data security – compliance with GDPR.
5. A dedicated accountant with knowledge of the sector.
6. More time for investment development and new projects.

How do you start working with our accountancy firm?

1. Contact us by phone or e-mail.
2. Book a free consultation (in person or online)
3. Receive a tailored offer for accounting services
4. Sign the contract and start safe management of the finances of your investment

What do you gain by outsourcing your bookkeeping to EFEKTA?

Time savings

We will take care of all formalities and settlements

Peace of mind

No more uncertain determination of project costs

Security

Correct recording of income and expenses, in compliance with regulations

Professionalism

Experience in the settlement of development projects

Support

Answers provided to questions, also out of hours

Tailored offer

Tailor-made services for each project and investment scale

Find out what our customers think

Developers and investors value us for our thoroughness, knowledge of the industry and full commitment. Join the ranks of companies which are already settling their development projects with us – with profit and peace of mind.

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Contact us today!

Do not leave accounting to chance. Fill in the contact form or call us to book a free consultation with an advisor. Find out what professional accounting looks like – and get the peace of mind you deserve.

FAQ – Accounting in the property development industry

1. What does accounting of a property development company entail?

The accounting of a property development company is a result of the specific nature of the property development industry, including the detailed recording of costs and revenues, the classification of development costs, the settlement of development contracts, and data presentation in accordance with regulations and National Accounting Standard 8 (NAS 8).

2. What is NAS 8 and how does it affect the accounting of a property development company?

NAS 8 is the national accounting standard for costs and revenues related to development projects and their execution. It is related i.a. to the method of accounting for costs incurred during development activities, cost classification by type, the method used to recognise the costs of a development project and the value of land resulting from the accounts. Of particular importance here is e.g. paragraph 7.5 of NAS 8, which indicates that costs are accrued for each project separately, until completion.

3. Which costs are recognised in the accounting of a property developer?

The accounting records of a property development company cover all costs incurred during the development activity, including:

• Cost of land or right of perpetual usufruct
• Design and administration costs
• Expenses incurred by the developer’s own efforts
• Construction, supervision, financing costs
• Expenses related to the conclusion of the development agreement(s)

All costs are recorded separately for each development project and are included in the costs of work-in-progress until the development project is completed.

4. What is the breakdown of type costs for several investment projects?

Costs broken by type can be allocated to different investment projects in accordance with the principle of costs allocation to different activities by type. The accounting records must reflect the actual commitment of funds to a specific development project in order to correctly determine the financial result and financial efficiency of the given project.

5. What about accounting in the case of sales of apartments or premises?

When the result of a development project is sold, the development project is completed and the costs are shared. The finished products are then handed over to the purchasers and their value resulting from the accounts is included in the profit and loss account. Settlements depend on the nature of the signed development agreement, as well as on the time when the transfer of ownership took place.

6. What are the accounting obligations from the day the project starts?

From the start date of the development project, the company is required to keep the accounts of the development company in accordance with the provisions of the Accounting Act and NAS 8. Each development project carried out requires separate records, documentation of the costs of the development activity in the ledgers, as well as their correct classification – e.g. as an investment in a property, if the investments meet the relevant conditions.

7. How does developer accounting differ from standard accounting?

Accounting in the property development industry differs significantly from typical accounting for service or retail companies. The key here lies in managing the finances of the development company separately for individual projects, in line with contractual assumptions, investment cycles and cost and revenue structures. It also requires a specific approach to accounting of costs incurred in the course of the business and allocating them in accordance with regulations.

8. Do you offer specialised accounting services for property development companies?

Yes, our accounting office EFEKTA offers dedicated accounting services for property development companies. We assist with comprehensive bookkeeping, preparation of tax returns, classification of business costs, as well as with the development of an accounting policy in accordance with NAS 8. Our support also includes the interpretation of regulations and assistance with the financial analysis of the company.