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 PropertyTree!
In New Zealand, you are required to rollover your financial year on April 1st to include all transactions on your bank statement up to and including 31st of March.
For a straightforward and stress-free EOFY, we recommend reading and following the below information and steps.
Charging EOFY Fees
If you charge your owners a fee for their Income & Expenditure statements, this fee may already be set up in PropertyTree. 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
- Tick the 'Property Fee' box, 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
The EOFY Process
You will process your March EOM as you would any other EOM, however you will need to consider when it should be done. In New Zealand, you are required to roll over your financial year on the 1st of April.
To make sure you provide the correct information to your owners, it is recommended that you receipt into PropertyTree all the transactions in your trust account up to an including the 31st of March. Please make sure ALL your transactions in March appear on your owner’s statements.
To ‘Close the Period’ follow these steps:
- On the 1st of April, go to the ‘Trust & Reports’ section of the main menu on the left-hand side of your dashboard and select ‘Trust Management Tasks’ and then select the ‘Close Period’ option.You will need to enter the date as the 31st of March.
- Select this as the final period of the financial year
- Complete your EOM steps as you normally would
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 have their Statement Information set up with either Post, Email, or Post & Email.
To update this, follow these steps:
- Go to ‘Ownership Profile’
- Select ‘Contacts’
- Click ‘Edit’
- Then select ‘Statement Information’
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 March 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 & Expenditures 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.
PropertyTree cannot backdate payments, therefore all payments to owners will be recorded as the actual date they were paid in PropertyTree. Their payments will appear on the statement for that period.
- If you do an ownership payment on or before the 31st of March, the payment will appear on the Income & Expenditure Statement for the CURRENT financial year.
When entering all receipts appearing on the bank statement dated 31st of March (or prior), make sure the receipt’s Received On date matches the same date that’s displayed on the bank statement. This will ensure the transaction appear in the correct month of June for auditing purposes.If you need further information, refer to the articles in PropertyTree’s Knowledge Base – there’s an entire section devoted to NZ EOFY!
We also recommend contacting REINZ to ensure you are compliant with their requirements.