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) 
  • Automatically (recurring charges) 
  • Via the contractor app

Where do the created transactions reside

  • Tenant statement
  • Owner Statement
  • Contractor statement

 

What types of transactions are there

Transaction will fall under two main categories:

  • Charge
  • Reciepts

Charges

  • Debit the statement (charge the tenancy or owner)
  • Credit the statement (credit the tenancy or owner- negative charge)

Receipts

  • Credit the statement (receive money)
  • Debit the statement (pay money out of the statement)

Dealing with rent depending on whether the business is an agency or owned privately

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 hierarchy affect where transactions are located

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

  • Property will show all transactions in the tenancy + unit + those added to property level
  • Unit will show all transactions from tenancy + those added to unit level
  • Tenancy will show all transaction within a tenancy

 

Here is a tenancy statement at property level of 9 the burroughs showing rent from all tenancies in this block. You will see rent from flat 6 and flat 3 in one staatement

 

 

 

 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 hierarchy 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.

 

Still have a question?

Our support staff are ready to help with any technical issues.
To get in touch please use our online chat below