It’s that time of the year again! With End of Financial Year (EOFY) fast approaching, we thought now would be the perfect time to refresh and provide you with the A-Z of the process in Property Tree!
End of Financial Year in Property Tree is straight forward and not too different from your normal end of month process. Below is a guide along with links for extra information on each topic.
Charging EOFY Fees
EOFY is a breeze in Property Tree. In fact, the only difference from the end of your regular End of Month (EOM) is that you will generate an Income and Expenditure statement for your owners, and for this you might charge them a fee.
If you charge your owners a fee for their Income & Expenditure statements, this fee may already be set up in Property Tree. If it’s not, follow these steps:
- Go to the ‘Configuration’ section of the main menu on the left-hand side of your dashboard
- Go to the fees list, select ‘property flat fees’, and then click the ‘+’ symbol to add the fee detail
The important part of creating this fee is the event, which should be set to manual if you charge your fees in the current financial year. Otherwise, use the automated event ‘Income & Expenditure report created’ if you wish to charge the fees in the next financial year.
- Enter the fee amount
- Add the properties that need to be charged the fee
- Flag whether any future properties will need to be charged the fee
- Add the effective date for the fee, and then hit save once completed
You can use the edit pencil next to the fee (right-hand side) if you need to make any changes.
Once your fees have been set up, the manual fee MUST be charged first so that it can be paid during your June EOM, and therefore be recorded in the current financial year.
To charge the manual fee, follow these steps:
- Go the ‘Managements’ section of the main menu on the left-hand side of your dashboard
- Find the ‘Fees and Payments’ section and then select the ‘Charge Fee’ option
- Select the Property Fee button, then select ‘Income & Expenditure Fee’ from the drop-down menu, click ‘Add fee’, and then ‘Select All’
- Your screen should then display all properties, enabling you to delete or edit any fee amounts as required.
- Click ‘Charge’ to complete
PropertyTree cannot backdate payments, therefore all payments to owners will be recorded as the actual date they were paid in Property Tree. The payments will appear on the Ownership statement for that period.
- If you do an ownership payment and create a statement on or before the 30th of June, the payment will appear on the Income & Expenditure Statement for the CURRENTfinancial year.
- If you do an ownership payment and create a statement on or after the 1st of July, the payment will appear on the Income & Expenditure Statement for the NEXTfinancial year.
- Any receipts created on or after 1st July, with a Received date of 30th June or before, will appear as Income in the following Financial Year.
Owner Statement Tips & Tricks
Transactions shown on the I&E statement are pulled from the owner’s statements produced throughout the financial year.
We recommend checking that all your owners are having statements created.
To update this, follow these steps:
- Go to Ownership Profile
- Select Contacts
- Click Edit
- Switch on “Create Statements & Income & Expenditure Reports
When to Close the Period
In Property Tree, best practice is to close your period on the first day of the new period, allowing all receipts and payments to be processed and included in the previous months audit reporting.
- PropertyTree allows you to close your period independently of paying Ownerships and creating statements.
- Any transactions processed on 1st July or after will not be included in the I&E Report for the previous Financial year.
- Balance your Bank Reconciliation for the period you are closing.
- Complete the Close of Period on or after 1st July. Enter 30th June in the 'End of Current Period' field and select 'Yes' for 'Is this period End of Financial Year'
- As part of the Close of Period process audit reports are automatically emailed to the Agency email address.
To ‘Close Period’ follow these steps:
- On the 1st of July, go to the ‘Trust & Reports’ section of the main menu on the left-hand side of your dashboard and select the ‘Close Period’ option. You will need to enter the date as the 30th of June.
- Select this as the final period of the financial year
- Complete your EOM steps as you normally would
Generating Income & Expenditure Statements
All transactions on the ownership statements that have been created throughout the financial year are include on your owners Income & Expenditures statements, so you need to ensure your owners June statements have been generated in PropertyTree prior to generating the Income & Expenditures statements.
To create and send Income & Expenditure statements to your owners, follow these steps:
- Go to the ‘Managements’ section of the main menu on the left-hand side of your dashboard, ‘Ledgers & Reports’, and then select the ‘Income & Expenditure Reports’ option
- You will then need to select the date range. Either select individual ownerships or send to all
If you have decided to charge the fee in the next financial year, and you have therefore set an automated fee, this is the time the fee will be charged. Ownerships with this fee will have it listed against their name. The fee will be paid during the next EOM in the new financial year, and will therefore be recorded on their next Income & Expenditure statement. You can also preview each ownership statement prior to sending them off.
When sending the statements to owners, the owners using the Owners PropertyTree portal will have their statements available to view from their portal. They will receive an email notification letting them know that it is ready for them to access.
If you need further information, refer to the articles in Property Tree’s Knowledge Base – there’s an entire section devoted to EOFY!
We also recommend contacting your local industry bodies to ensure you are compliant with your state and territories requirements:
ACT – REIACT: Consumer Rights
NSW – REINSW: Fair Trading
QLD – REIQ: Fair Trading
SA – REISA: Fair Trading
NZ – REINZ: Fair Trading