Top Real Estate Accounting Trends To Watch in 2022
Anthony Wardan says,Real estate accountants have played an important role in the performance of their companies for the past two years
For the past two years now there have been persistent increase levels of both economic and public health uncertainty. But as the year 2021 comes to a close there is hope and reason to remain optimistic for the coming year. In a recent report, about 80% of professional commercial real estate owners that were surveyed believe the revenue of their organization will improve in 2022.
Anthony Wardan says, Real estate accountants have played an important role in the performance of their companies for the past two years and are expected to continue in the coming year. There is probably going to be a continuation of some of the patterns observed in commercial real estate in 2022. One important key to the success of real estate accountants will be for them to develop a post-pandemic strategy. Let's take a look at top real estate accounting trends for 2022.
Continuous Growth Of Property Technology In 2022
During the pandemic property technology experience, an increased growth as the percentage of property management organizations that adopt new technology increased to 51%. Property technology has been in use even before the pandemic set in and is expected to grow more in 2022. Tracking, performance measurement and data management are part of the things that need to be addressed according to real estate professionals.
So to address all these there will be high demand for property technology as real estate accountants finds new ways to effectively operate. To select the right technology the best approach to take is to access the current processes and then figure out what can be automated to scale. For instance, accountants that handle big portfolios can effectively operate with technology in various ways including real estate solutions with an inbuilt budgeting process that can help reduce delays and add data throughout teams to enhance operations across the business. Impairment calculations is a task that can be streamlined though is very complex as it involves changing the ASC 842 operating leases depreciation method.
Development Of Post-pandemic Lease Accounting Strategy
For real estate accounting teams to be successful in 2022 a post-pandemic strategy is a must. And to effectively control their leasing portfolio there will be a need for teams to adopt property technology. They also need to be aware of any available pandemic-related relief, modifications, reassessments and have a broad view of leasing event timing. Data collection can be streamlined for operational and financial planning and analysis as well as for compliance purposes. Accounting teams that will be able to integrate correct data into the ERP are those that make use of a systemic approach to their month-end activities. There is a need for real estate accounting to respond quickly to the changing landscape and better technology so that they can operate more efficiently. And for them to effectively drive strategy they need to closely work with the business team.