Month End Process

The steps and timeline Acme House Co. follows in order to close the books for months end, and issue owner statements. References all software associated with doing so.

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📝 Process Owner: 

• Accounting Manager - Michael Bowe

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▶️ Process Diagram

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🏁 Start Event:

• Process starts on the 5th of the month following the most recent period

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🔑 Seats Involved:

Internal:

• Operations
• Accounting Manager
• Integrator/COO

External:

• None

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📈 Process Measurables:

1. Process Measurable Name (N/A)
   1. How we obtain/track:
   2. Frequency:

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📚 Supporting Materials:

• N/A

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💻 Supporting Software:

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🎥 Month End Process Video Walkthrough

 

 

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➡️ 1. Upload Monthly Work Orders & Inspections

⏱️When: Start on the 10th of the month at the latest

Operations - Pull Monthly WO & Inspection Tasks 

Operations - Upload Monthly WO & Inspections (Track)

• All monthly work orders and inspection tasks must be entered into Track

Track Automation - Vendor Invoices Created (Track)

• Automation occurs when the work order and inspection tasks are uploaded to Track
• The Track Automation will create vendor invoices within the Track system

❗The vendor invoices in Track will need to be deleted in the next step

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➡️ 2. Remove Vendor Invoices from Track

⏱️When: Dependent on Operations uploading Monthly Work Orders & Inspections to Track

Accounting Manager - Remove Vendor Invoices (Track)

• The Vendor Invoice created by the Track Automation need to be deleted to prevent duplication on owner statements:
  • From the main Track screen, select the CRM Icon, and select Companies.
  • Search for “ACME House Co”, and click View.
  • Click the Bills tab to display a list of outstanding invoices.
  • Click Date to short the invoices so the most recent date appears at the top of the list.
  • On the line item, click the blue Action drop down. Select Delete, Click OK to delete the invoice.
  • Click the Back button to return to the ACME House Co. Click Bills to see the listing of invoices.
  • Repeat the steps listed above until all the invoices for the current period are deleted.

❗When all the invoices for the current period have been deleted, there should be 387 invoices remaining on the list that cannot be deleted as they are from 2021 and 2022.

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➡️ 3. Process Work Order Charges 

⏱️When: Dependent on Operations uploading Monthly Work Orders & Inspections to Track

Accounting Manager - Process Work Order Charges (Track)

• Process all work order charges so the post to owner statements:
  • From the main Track Screen, select the Maintenance icon, and select Work Orders.
  • Click Assigned on the blue bar.
  • On the line item, click the blue View
  • Click the Yellow Work Completed
  • Click the Red Complete Billing
  • Repeat the steps above until all work orders have been processed.

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➡️ 4. Zero-Out Departed Guest Folios

⏱️When: ASAP after the first of the month

Accounting Manager - Generate "Guest Folios with Balance" Report (Track)

• Generate the Guest Folios with Balance Report
• Review in order to zero-out departed reservations
  • Select the Reports icon, select Guest Folios with Balance.
  • In the Check-Out Date After, insert the last day of the month prior to the month you are working on.
  • In the Check-Out Date Before, insert the first day of the month after the month you are working on.
  • Click Run Report.

Accounting Manager - Zero Out Necessary Reservations (Track)

• From within the Guest Folios with Balance Report:
  • • Click on the Folio # to access the reservation that needs to be adjusted. Make the necessary adjustment to zero out the reservation.
    • Repeat this step for each reservation that needs to be cleared.

❗You can click the Run Report option to refresh the report at any time.

• Common situations that will need adjustments:
  • Penny reservations adjustments due to tax rounding.
  • Adjustments for guest refunds that need to be billed back to the property owner.
  • Track generated payments that we did not actually receive.
• A good practice is to also change the Check-Out Date After to be the first day of the year so you can view/adjust any reservations that may have been updated after you’ve processed owner statements for the previous period. The Reservations Department has a habit of giving refunds after the reservations have been processed to the owner statements.

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➡️ 5. Review & Clear Deposits in Transit

⏱️When: ASAP after the first of the month

Accounting Manager - Sort Bank Deposits

• Completed For:
  • Airbnb
  • Marriot
• Sort Bank Deposits by Type:
  • Airbnb Net Commission
  • Bookingpal/Marriott Net Commission
  • Cash or Check deposits
• Look for Airbnb Net Commission, Bookingpal/Marriott Net Commission, Cash or Check deposits that may need to be cleared.

Accounting Manager - Clear Undeposited Payments

• Items that need to be updated:

  • Clear any items that need to be updated by either removing the payments from the reservation, or by creating a Bank Deposit.

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➡️ 6. Post Owner Payments to Track

⏱️When: ASAP after the first of the month

Accounting Manager - Post Owner Payments (Track)

• Post Payments For:

  • Checks received
  • Owner credit card charges
  • May have been processed in QuickBooks or Intacct.

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➡️ 7. Review & Confirm GL Accounts

⏱️When: ASAP after the first of the month

Accounting Manager - Review GL Accounts

• Review GL Accounts:

  • Cancellation Fee Income: Only include fees for the current month.
  • Concierge Services: Only include $50 fees.
  • Credit Card Fee: This account should be zero. Owners do not get charged this fee.
  • Merchant Fee Expense: Ensure merchant fees are recorded.
  • Misc. Fee: Review account details, and group amounts together by category for the Income Journal Entry.
  • Payable to Owners: Pool Heat fees that are payable to Owners.

Accounting Manager - Run GL Detail for Each Account

• Running GL Details:

  • Go to Reports, Accounting, General Ledger, select dates and Account
• Repeat for each individual GL account

Accounting Manager - Export GL Details (to Excel)

• Export each GL Detail to Excel

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➡️ 8. Generate & Review Owner Statements

⏱️When: By the 12th of the month

• After all transactions for the month have been processed and reviewed, you are now ready to generate and review Owner Statements.

Accounting Manager - Generate & Review Owner Statements

• Select the Owner icon, select Statements.
• Click the green Generate Period Statements box.
• Select the Month you wish to generate, click the blue Filter
• Look at the owner’s address. If it is not CA, Non-Resident Tax may need to be withheld.  
• Look on the right side of the screen to see if “Business Tax” was calculated. If Business Tax was calculated, and it’s confirmed that this owner should be taxed, update the yearly CA Non-Resident Tax spreadsheet.
• Review each folio line. Only folios that departed in the current month should have the blue check box marked so they are included on this month’s statement.
• Review each folio line. The amount showing in the balance column of included folios should be zero. Folios usually have a revenue amount and a charges amount for guests. However, if it is an owner stay or guest of owner, there will usually be only an amount in the charges column (cleaning fees).
• Look for “Cancelled” reservations. There should be no Charges (Travel Agent Commissions) on Cancelled reservations, only revenue for the Cancellation fee.
• Work Orders for the current month should all be blue checked to be included.
• Transactions for the current month should all be blue checked to be included.
• If a payment is being made to the owner, make sure the Yes box is blue checked, and it states “ACH” and “Chase Short Term Account” next to the amount.
• If the owner owes money to ACME, it should display “ACH account is not authorized to be debited’ or “ACH account is not properly configured”, and the amount at the bottom should be negative.
• If everything is ok as it appears, scroll up and click the green “Approve” box.
• Scroll back to the bottom and click the green “Save Statement” box.
• The system will advance to the next owner, or go back to any previous unprocessed owners.  
• Repeat steps until all statements are processed.

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 ➡️ 9. Prepare & Process ACH File

⏱️When: Immediately After Generating Owner Statements

• After all owner statements have been processed, you are now ready to prepare an ACH file to transmit to the bank for payment distribution.

Accounting Manager - Run a Check Register

• Run a check register to get a total of all owner payments:
  • Select Reports
  • Select Check & ACH Register,
  • Select the dates of your check payment
  • Select Type = ACH
  • Select Voided Transactions = Do Not Include
  • Select Accounts = Chase Short Term Account
  • Click Run Report
• Export the report to Excel to print it.
  
  

Accounting Manager - Transfer Bank Funds (Chase Access)

• Transfer funds for the total amount of payments generated
• Transfer Bank Funds From: Chase ACME Short Term
• Transfer Bank Funds To: Chase ACME ACH - Clearing Account

Accounting Manager - Create ACH Batch (Track)

• Create an ACH batch in Track for the owner payments:
  • Select the Accounting icon
  • Select ACH Batches
  • Select + ACH Batch to create a batch
  • Date the batch the date you want the payment to deposit into the owner’s bank account
  • Select Bank = Chase Short Term Account
  • Enter Company Entry Description/Memo = MMM YY OS Payments
    • Example: Oct 23 OS Payments
  • Copy the same memo in the Company Discretionary Data Field
  • Select the individual payments to be included in the batch
  • The total of the batch should equal the check register generated in step "Run a check register to get a total of all owner payments"   
  • Click Save Batch.
  • Click Download ACH File to save the file to your computer.
    
    

Accounting Manager - Transmit ACH File to Bank

• Log into the Chase Access website
• Click Payments
• Click import File
• Select the file from your computer
• Upload file
  
  

Accounting Manager - Notify Jason (Slack Message)

• Notify Jason via Slack
• Please go into Chase Access and approve/submit the ACH file for processing

FLANNERY -  Approve/Submit ACH File for Processing (Chase Access)

• Access Chase and submit ACH

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➡️ 10. Send Owner Statements

Track Automation - Statements Auto Uploaded to Owner Portal (Track)

• Statements are auto uploaded into Track and sent to the Owner Portal.

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 ➡️ 11. Record Track Income in Inntact

Accounting Manager - Pull GL Account List (Track)

Accounting Manager - Create Journal Entries (Spreadsheet XLS)

• Review GL Account Lists for dollar amount activity
• Input into Journal Entry format

Accounting Manager - Post Journal Entries (Inntact)

 

➡️ 12. Collect funds due from owners with negative balances

Accounting Manager - Your goal is get the credit card authorization filled and signed within 1 week maximum.  Then re assign ticket to accounting with a note, that your job is complete and owner needs to be charged.  

• Run report showing all owners with balance due to charge not going thru. 
• Contact all of these owner via opening ticket in Action item pipeline, also contact by spoke phone in hub spot, text from Spoke Phone.   Use template Owner negative balance credit card notification for the email.  
• Re assign the ticket after the contact is made, immediately Operations manager (Manager of Property Agents)
• Property agents will follow up if they need anything. 

questions:

how long does accounting have to collect funds with a good cc auth? 

assign task by PA?  at least they can track it 

how can we remain pci compliant, as part of the process for collecting and storing cc info?  cannot be in hubspot. google drive ok, gmail is compliant but terrible idea. 

 

Accounting Manager - 

notes.  need to charge owner cc 

send them paid receipt

post it in the system. 

 

 

 

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