Understanding financials

Where can transactions be added?

Any transactions added to Arthur will have a relationship to:

  • Property
  • Unit
  • Tenancy
  • Work order

 

How do transactions get created?

  • Manually (one-off transactions) – added by the property manager or a contractor via the app
  • Automatically (recurring charges) – automatically generated by Arthur on a schedule set up by the property manager

Where do the created transactions reside?

  • Tenant statement
  • Owner Statement
  • Contractor statement

 

What types of transactions are there?

Transaction will fall under three main categories:

  • Invoices (Charge)
  • Credit Note (Negative Charge)
  • Payments (Receipts)

Does business type affect how rent charges are entered ?

Identifying your management type in Arthur’s ‘Financials’ is a fundamental step to ensure that your set up reflects your business.  This is especially important if you intend to integrate with cloud accounting software later on.

Two types are available;

  • Direct rent – used by those that self manage i.e collecting the rent for themselves.
  • Rent charge – used by those who manage on behalf of 3rd parties e.g agencies who deduct fees from the rent before passing it on

Some Arthur clients are a mixture of both so we suggest setting your default position to the most common management type. To edit your financial set up click here

 

How does Hirachy effect the statement?

Depending on the level you view the statement will determine what trasactions you see

1. Tenant rent statement:

  • Located at property level it shows transactions from all tenancies and all units
  • Located at unit level it shows transactions from tenancies in that unit and any transaction against that unit
  • Located at tenancy level it shows transaction from that tenancy alone

2. Property owner statement:

  • Located at property level it shows transactions from all tenancies and all units
  • Located at unit level it shows transactions from tenancies in that unit and any transaction against that unit
  • Located at tenancy level it shows transaction from that tenancy alone
  • Located in contacts > property owner > statement it shows all transactions across entire portfolio

Contractor statement:

  • Located at property level it shows transactions from all tenancies and all units
  • Located at unit level it shows transactions from tenancies in that unit and any transaction against that unit
  • Located at tenancy level it shows transaction from that tenancy alone
  • Located in contacts > contractor > statement it shows all transactions across entire portfolio

 

 What is a remittance?

Remittances are a collection of charges and receipts that result in a single payment (transaction) being made. Remittances are made to:

  • Tenants, on a closing statement
  • Property owner, when they are due funds
  • Contractor, to pay their bills

 How does hirachy effect how an an agent remits to a property owner?

An owner remittance can be presented to the owner from:

  • Property level – a remittance here will show all transactions for all units and tenancies in the property. E.g HMO owner
  • Unit level – a remittance here will show all transactions from that unit and tenancies  E.g single landlord with 1 unit
  • Portfolio level – a remittance here will show all transactions across all properties and units. E,g Portfolio owner with multiple properties/units

Where does Xero or QuickBooks fit in?

There are many advantages to using the two systems. One of the most important is the avoidance of having to manually record the same data across multiple software/spreadsheets. Another advantage is that it complies with new regulations for Making Tax Digital. One of the best features is the bank feed and reconciliation process. In short, Arthur is responsible for tenant, owner and contractor statements and Xero or QuickBooks is responsible for your business. This gives users the best of two worlds.

 

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