You probably are not too interested in doing your own accounting - it can be confusing and sometimes seem illogical, even if you can get beyond the language. As an investor you should be considering the following:

Method of Taxation: Net rental profit vs.
Percentage of gross rental income
Regardless of whether you have acquired the apartment directly or through a company, it is time to engage an accountant. Why? Because engaging an accountant allows you to calculate tax based on the net rental profit as opposed to 70% of the gross rental income. After subtracting the mortgage and depreciation, there is rarely any profit left to tax! You will also be dealing with tax upon sale of the unit  - it is important to catch as many legitimate costs as possible throughout the life of the investment to reduce tax overall.

Value-Added Tax
Rental of residential real estate is generally free of VAT. But did you know that other forms of income are not? Garage rentals, furniture rentals and even an unauthorized use of the client deposit upon vacating the apartment can all be considered VATable services. If overall income from your business approaches or exceeds CZK 1 million, you will need to deal with this issue or face strict penalties, quarterly reporting and greater regulatory oversight.

Utilities
Be careful how you set up the tenant agreement. As an apartment owner you are not authorized to resell regulated utilities, like gas or electric. You need to be certain to collect advances on utilities that you regularly reconcile against actuals. Generally, it is a very good idea to do this annually at the end of the year based on estimates - this makes sure that you accrue the right amount of expense, reduce taxable profit and collect any utilities costs due to you from the tenant. Note also, if you try to resell these costs as something else, you are also selling VATable services. This could be a big mistake if your annual income tops CZK 1 million.

Portfolio
We find that the surest way to evaluate an investment is by looking at its numbers. Whether you have one or more units, we can build a balance sheet and profit and loss statement for each one to give you a picture of the profitability and cash flow value. Also, you may need to use the information from your investment in a foreign tax return (US example!). We enter your data so it is meets your Czech and international reporting needs - generally for the same fee.

Pricing

Would you like to learn more? Contact us by email here and reference "Rental properties services" in the header. Thank you!

CFO2GO follows a pre-agreed schedule that includes a start-up analysis, data conversion from previous systems, drafting of printouts and customized reports, account assignment, verification of automated process functioning, user training, and trial run. In the end, the client has an ERP information system customized to its needs that allows for a complete and efficient automation of all tasks. Also, CFO2GO will work with proactively with the Client to increase the functionality of the system and increase the Client's return on investment.

TWIST INSPIRE ERP is prepared to communicate in Czech, German and English. All controlling elements and the names of modules, submodules and forms are translated, printouts are available in all three languages. Accounting records are kept in original and local currency, local statutory accounts can be mapped to the parent's chart of accounts or to a different management reporting chart. TWIST INSPIRE ERP supports data export to foreign systems. CFO2GO's solution is preconfigured to enable secure remote access from anywhere on the planet. The system specifically enables upload (in PDF) and offsite digital storage of all accounting and statutory documentation at no additional charge.

Generally, the client accesses the system through one or more VPN-enable PCs at its office and Client's own fixed-compensation administrative staff (not expensive accounting staff) effortlessly enter all invoices received, invoices issued, cash and bank transactions using specially-prepared accounting templaets prepared by CFO2GO. TWIST uses a semi-automated system for the synchonization of bank records over the client's online banking solution. Highly-trained CFO2GO accountants then verify the original document entries are correct (pulling up the digitally-stored images to verify correctness) and enter monthly or quarterly adjustments in accordance with applicable Czech Law and IFRS/GAAP - depending on the needs of the Client.

For small or newly established enterprises, CFO2GO is able to offer a pre-installed ERP solution in both the offline and online modes. The pre-installed version is pre-filled with database codes, standard overviews and reports. The information system can be put into operation almost immediately; with no lengthy preparatory or implementation phases.