Property Management Companies

5 things to know on issuing service charge balancing statements for a commercial property management company.

Revenue have given clear guidance and examples on how to raise service charge balancing statements on its website. However, there are five things to know when issuing the statements.

1.     Balancing statements should be circulated to tenants as soon as the expenditure certificate has been issued by your auditor. Normally within three months after the year end.

2.     The VAT registration number should be quoted on the statements with detailed VAT breakdown as it serves as a VAT invoice to enable tenants to claim back remaining input VAT credit on balancing service charge figures.

3.     A copy of auditor’s expenditure certificate should accompany your balancing statements.

4.     Any discrepancies on SC demanded amount between figures used in calculating balancing charges and audited accounts should be investigated prior to issuing the statement. It could be difficult to recoup this difference from tenants after issuing the statement.

5.     If a tenant has left prior to the issuance of balancing statements, proper procedures should be in place to ensure that balancing figures are covered prior to their departure. 

Sheldon Zhang is Manager - OSK Audit. OSK are one of Ireland’s leading providers of property management audit services to commercial, industrial and residential property management companies. 

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