FAQ's

The answer to this is simple: a diverse, yet specialized, skill set at your disposal. Our combination of accounting, finance, software, IT, property, and data analytics skills is rare, if not impossible to find, in the industry. We work as a team to craft solutions unique to our clients. We are senior-level professionals capable of solving complex problems.

We can work with other systems, however, they may not allow our developers to pull or push financial, reservation, amenity, or other data to the extent that Hostaway does. We will be happy to examine the API of different systems and provide further advice.

Jira Administration, Website Development, Automation in Make.com or Custom code. We can integrate and automate any system that makes API access available to developers. Hostaway’s platform is strong in its API access, thus we recommend it.

The first reason is our accounting staff. We specialize in books for short-term rentals managed by the Hostaway PMS, which involves the proper setup of financial formulas. The second reason is our software team. We set up precise automation to Hostaway that results in a very detailed set of books with minimum errors and maximum accuracy. We can port data out quickly with automation if needed.

Our dashboard provides unparalleled control by illuminating the key performance indicators (KPIs) in your business. We begin by building your data pipeline from the HV Operations Platform, your accounting system, and Hostaway. Then, we customize your dashboards to meet your exact requirements, including sales and revenue data, expense data, customer feedback, customer demographics, property feedback, and more.

We provide custom solutions and quotes for each business. Please book a consult and we will be happy to discuss.

Hostvisors will provide reports once the books close each month. Typical reports we provide include:

• Income Statement (Profit and Loss Statement):
  • Details the revenue, expenses, and net profit or loss for the month.
  • Breaks down rental income, cleaning fees, management fees, maintenance costs, and other operational expenses.
• Balance Sheet:
  • Provides a snapshot of the company’s financial position at the end of the month.
  • Lists assets (such as cash, accounts receivable, and properties), liabilities (such as loans and accounts payable), and equity.
• Cash Flow Statement:
  • Tracks cash inflows and outflows from operating, investing, and financing activities.
  • Helps the company understand how cash is being generated and used.
• Owner Statements:
  • Provides property owners with a detailed breakdown of income and expenses for their individual properties.
  • Includes rental income, management fees, cleaning fees, maintenance costs, and net income.

When a property management business fails to keep proper books, it can face a host of detrimental consequences that affect its operations, financial health, legal standing, and the trust of property owners. Here are the potential repercussions:

1. Financial Mismanagement:

   • Inaccurate Financial Reporting: Without accurate records, generating reliable financial statements becomes difficult, leading to poor financial decisions and overlooked profitability issues.
   • Cash Flow Problems: Mismanagement of cash flow can result in insufficient funds to cover expenses like maintenance, utilities, and salaries, or missed opportunities for investment in property improvements.

2. Tax Issues:

   • Non-Compliance: Failing to maintain proper records can lead to non-compliance with tax regulations, resulting in fines, penalties, or legal action from tax authorities.
   • Incorrect Tax Filings: Inaccurate or incomplete financial information can lead to errors in tax filings, increasing the risk of audits, additional penalties, and interest on unpaid taxes.

3. Operational Inefficiencies:

   • Poor Budgeting: Without clear financial data, creating accurate budgets and forecasts for property maintenance, upgrades, and operations becomes challenging.
   • Inability to Track Performance: Lack of proper records prevents the business from monitoring key performance indicators (KPIs), such as occupancy rates, rental income, and maintenance costs, making it difficult to assess overall performance.

4. Loss of Credibility and Trust:

   • Investor and Lender Confidence: Investors and lenders rely on accurate financial statements to make informed decisions. Inaccurate or missing records can erode their confidence, limiting access to capital for property acquisitions or improvements.
   • Stakeholder Trust: Property owners, tenants, and service providers may lose trust in the property management company’s stability and reliability.

5. Legal and Regulatory Consequences:

   • Legal Penalties: Regulatory bodies may impose legal penalties for failing to maintain proper books and records, including fines or sanctions.
   • Litigation Risks: Poor record-keeping can increase the risk of legal disputes with property owners, tenants, and vendors, leading to costly litigation.

6. Audit Challenges:

   • Difficulty in Auditing: External audits become challenging without proper records, potentially leading to qualified or adverse audit opinions, which can harm the business’s reputation.
   • Increased Audit Costs: Auditors may need more time and resources to verify incomplete or inaccurate records, increasing audit costs and disrupting business operations.

7. Business Continuity Risks:

   • Disaster Recovery: Inadequate records can hinder recovery efforts in the event of a disaster, such as a fire or flood, as there may be no backup of critical financial information and property management records.
   • Succession Planning: Lack of proper documentation can complicate succession planning and the transfer of business ownership or management, risking the continuity of the business.

8. Missed Opportunities:

   • Strategic Planning: Incomplete financial information limits the ability to perform strategic planning and make informed decisions about property acquisitions, disposals, and improvements.
   • Growth and Expansion: The business may miss opportunities for growth and expansion due to a lack of clear financial insights, hindering its ability to compete effectively in the market.

9. Impact on Owner Statements:

   • Inaccurate Owner Statements: Incorrect income reporting and erroneous expense allocation can lead to inaccurate owner statements, causing owners to receive misleading information about their rental income and expenses.
   • Loss of Owner Trust and Confidence: Owners rely on accurate statements to understand the performance of their properties. Inaccurate statements can erode their trust in the property management company’s ability to manage their investments effectively.
   • Financial Disputes: Owners may dispute the charges and income reported in their statements if they suspect inaccuracies, leading to potential conflicts and a need for reconciliations.
   • Delayed Payments: Inaccurate statements can result in delayed payments to owners, affecting their cash flow and financial planning.

Proper bookkeeping is essential for ensuring the financial health, regulatory compliance, and long-term success of a property management business. It allows for better decision-making, efficient operations, and the ability to build trust with stakeholders, including property owners.

When a property management business fails to keep proper books, it can face a host of detrimental consequences that affect its operations, financial health, legal standing, and the trust of property owners. Here are the potential repercussions:

We have identified some key.

1. Business Information:
– Business name, address, and contact details
– Structure of the business (e.g., sole proprietorship, partnership, LLC, corporation)
– Copies of business licenses and permits

2. Financial Records:
– Previous years’ financial statements (income statement, balance sheet, and cash flow statement)
– Recent bank statements
– General ledger details
– Historical transaction records

3. Tax Information:
– Previous tax returns (federal, state, and local)
– Details of any tax payments or refunds
– Documentation of any tax liabilities or pending tax issues

4. Revenue Information:
– Detailed booking and rental income records
– Breakdown of revenue by property, including rates and occupancy
– Records of any additional income streams (e.g., cleaning fees, service charges)

5. Expense Information:
– Itemized list of all expenses, including maintenance, utilities, insurance, property management fees, and marketing costs
– Receipts and invoices for expenses
– Details of recurring expenses and contracts (e.g., cleaning services, maintenance contracts)

6. Accounts Receivable and Payable:
– List of outstanding receivables, including details of overdue payments
– List of accounts payable, including vendor names, amounts, and due dates
– Information on security deposits held and any refunds processed

7. Bank and Loan Information:
– Bank account details and access for reconciliation purposes
– Information on any business loans, including terms, payment schedules, and outstanding balances

8. Payroll Information:
– Details of employees and contractors, including payment records
– Payroll schedules and tax filings
– Benefits and deductions information

9. Property Information:
– Detailed list of properties managed, including addresses, acquisition costs, and current market values
– Documentation of any property improvements or capital expenditures

10. Compliance and Regulatory Information:
– Copies of occupancy tax filings and payments
– Records of any regulatory filings or compliance documents
– Documentation related to short-term rental regulations and compliance status

11. Technology and Systems Access:
– Access to property management software or booking platforms
– Login details for financial software and any other relevant systems

12. Miscellaneous:
– Insurance policies and claims records
– Any other relevant financial documents or correspondence

Providing this comprehensive information will enable the accounting firm to accurately manage the financial records, ensure compliance with tax regulations, and provide valuable financial insights for the vacation rental management company.

Yes absolutely. We do not currently provide tax planning, tax advice, or tax filing services. You may work with your CPA or we can recommend a few.

We primarily recommend Hostaway due to its extensive API access. This allows us to write scripts to pull data or integrate easily with other systems such as Quickbooks, XERO, JIRA, the HV Ops platform, and Marketing Automation tools like HighLevel or MailChimp. While other systems may allow access to some data, they may not allow it to the extent that Hostaway does. We are happy to examine the API that is available with other systems, however, and work around issues as possible.

Customers choose us to save time and frustration, and sometimes costly mistakes. With the Hostaway platform growing ever more feature rich, the learning curve gets steeper and steeper. We give you peace of mind through our Done-For-You services.

Yes, our team has years of experience troubleshooting issues on Hostaway and various OTA channels. With the purchase of an annual service contract or a pack of hours, we will guide you through the process and help troubleshoot any issues.

In order to create precise entries into your accounting system, we examine your business models, create custom formulas, and then perform automation. Our method of integration ties in many systems and produces the most efficient bookkeeping possible.