CPA Insights: Texas Real Estate Accounting & State Compliance FAQ

Two of the most powerful tools are Cost Segregation Studies and 1031 exchanges. Managing 10 million square feet has taught me that these are not just options but they are essential strategies for protecting your cash flow.

Yes. Real estate owners’ primary focus is on the asset and long-term growth. Property managers handle the day to day operations and tenant relations. Hiring property accountants for transaction processing allows both parties to focus on the asset. An experienced CPA brings it all together and provides timely financial reporting and tax compliance needed to satisfy investors, lenders, and boards of directors.

GAAP (General Accepted Accounting Principals) provide the primary framework for financial reporting. Board members should use this method because it provides accurate tracking of income and expenses. This helps with budgeting and planning future expenses.

Yes! I have over 25 year of experience handling this exact situation for real estate portfolios, multi-entity holdings, and associations. I audit the historical data trails and build a clean, accurate financial baseline so your operations remain compliant with state and federal regulations.

This is a common question I get! The answer depends on your goals but in Texas, we look at the liability protection and to minimize the self-employment tax. During the initial consultation, I walk you through the pros and cons.

Yes. It is more common than you think for business owners to fall behind. I will reconstruct missing data, file delinquent Franchise Tax reports, and negotiate with the State or IRS to minimize penalties. My goal is to clear your slate so you can focus on your future growth.

The state of Texas does not require a certificate of good standing to be submitted with Form 304 when registering a foreign (out of state) LLC or corporation with the Texas Secretary of State. For more information and a detailed guide to registering your foreign LLC, you may visit my guide for Form 304.

While the cash basis is common for day-to-day cash flow tracking in smaller operations, Texas franchise tax reporting and formal asset management often require specific adjustments or adherence to specialized reporting thresholds. We design custom chart of accounts tailored to your exact entity structure to ensure your chosen accounting method aligns perfectly with Texas state compliance guidelines.

You can check the status of your entity by accessing the Texas Comptroller franchise tax account status page. You will need the 11 digit Comptroller taxpayer number, entity name, or Secretary of State file number.

Do not panic! You received this notice from the Comptroller because you may have missed a required filing (Public Information Report) or a payment was missed. The State of Texas has officially suspended your business’ legal right but my firm focuses on getting Texas businesses back in good standing.

While the Comptroller doesn’t always notify your bank immediately, being forfeited or involuntarily terminated means your entity no longer has the legal right to transact business. If a bank performs a compliance check, they can freeze your access to funds until you provide a Tax Clearance Letter. With my CPA insights, I help business owners avoid this by filing of all delinquent Franchise Tax reports and getting your status restored before the bank takes action.

Andris Financial Services is open Monday – Friday 8 am – 7 pm. The firm is also open on Saturday 8 am – 3 pm. Closed on Sunday.

I pride myself on providing excellent customer service and response time. You will get a same day response to your initial inquiry and any communication between my firm and your representative.