Understanding the Basics of Arthur’s Financials

Where can transactions be added?

A transaction when added will have a relationship to:

  • Property
  • Unit
  • Tenancy

What transactions can be added?

Transaction added will either be;

  • 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 see how you would set your default position, click here to see how

 

How do transactions get created?

  • One-off transactions added by the property manager
  • Repeating transactions automatically generated by Arthur

Where do transactions show?

This will depend on who is the recipient of these transactions. Recipients include:

  • Tenants>Tenant statement
  • Property owners> Owner statement
  • Contractors>Contrcator statement

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

What are the main statements generated in Arthur?

The three main statements are;

  • Tenant rent statement
  • Property owner statement
  • Contractor statement

Where are these statements located?

Statements can be found within:

  • Property
  • Unit
  • Tenancy
  • Contacts

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

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

How does an agent remit 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 softwares/spreadsheet, another advantage when integrated to an accounting software 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 QB/Xero is responsible for your business. This gives users the best of two worlds.

 

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