How to Reconcile Booking Data Before Processing Owner Statements

Introduction

In the dynamic and fast-paced world of the short-term rental industry, accuracy in financial reporting is paramount. Owners rely on timely and precise statements to manage their investments, plan for future expenses, and ensure their properties are generating the expected returns. One critical aspect of achieving this accuracy is the validation of booking data before processing monthly statements.

Reconciliation of booking data is not just a recommended practice; it is an essential step to maintain the integrity of financial reporting. By meticulously validating booking data, property managers can identify and rectify discrepancies, prevent potential financial losses, and build trust with their owners. This process involves cross-checking reservations, payments, cancellations, and adjustments to ensure that every transaction is accurately recorded and reflected in the owner's statement.

Failing to reconcile booking data can lead to various issues such as overpayments, underpayments, and misreported income, which can have significant financial and legal implications. Furthermore, discrepancies in booking data can damage the credibility of property managers and erode the trust of property owners, ultimately affecting the business relationship and operational efficiency.

In this guide, we will delve into the importance of reconciling booking data, outline best practices for data validation, and provide actionable steps to ensure that your monthly statements are accurate and reliable. By adopting these practices, you can enhance transparency, improve financial accuracy, and foster a more robust and trustworthy management process in the short-term rental industry.

Reports

Step 1: Owner Payments Due Report

1. Navigate to Reports > Payment Status:
   • Open your property management software and go to the 'Reports' section.
   • Select 'Payment Status' from the list of available reports.
2. Update your Filters:
   • Set the filter to 'This Month' or adjust it to the specific period you are running the statement for.
   • Under 'Date Category,' choose 'Based on Payment Schedule Due Date' to ensure the report reflects the correct payment schedule.
   • Exclude Owner Bookings: Ensure that any bookings made by the owner themselves are excluded from the report.
3. Access the 'Owner Payments Due' Tab
   • Click on the 'Owner Payments Due' tab to view the list of bookings due for payment.

At this point, you will see a comprehensive list of bookings that are due to be paid to owners for the current month.

The key value you are looking for is the total Owner Balance, which in this case equals £143,743.69.

Key Considerations

• Booking Inclusion: This report only includes bookings that are outstanding and have a due date for the current month according to the 'Owner Payment Schedules'. If any booking's due date has been manually updated to a future month, it will not appear in this report.

• Past Due Dates: If the due date for any booking is in the past, it will still show up in this report. It is important to address any past-due payments to maintain accurate financial records and uphold trust with property owners.

By regularly generating and reviewing the Owner Payments Due Report, you can ensure that all due payments are accounted for and processed accurately, contributing to the financial integrity and transparency of your short-term rental business.

Step 2: Bookings Report

1. Navigate to Reports > Financials:
   • Open your property management software and go to the 'Reports' section.
   • Select 'Financials' from the list of available reports.
2. Update your Filters:
   • Set the filter to 'This Month' or adjust it to the specific period you are running the statement for.
   • Under 'Date Category,' choose 'Check in' to ensure the report reflects the correct expected payments i.e. bookings that started in the current month
   • Exclude Owner Bookings: Ensure that any bookings made by the owner themselves are excluded from the report.
3. Access the 'Bookings' Tab
   • Click on the 'Bookings' tab to view the list of bookings due for payment.

At this point, you will see a comprehensive list of bookings that have a check-in/out date for the current month.

The key value you are looking for is the total Owner Balance, which in this case equals £143,743.69.

Next Steps

• If the values match: Congratulations, it's a match! You can now proceed to run your statements.
• If the values do not match: You will need to start the reconciliation process to identify and resolve any discrepancies before moving forward.

By ensuring that these values align, you confirm the accuracy of your booking data and maintain financial integrity in your short-term rental business.