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Managing owner expenses and accurately reflecting them on owner statements is an integral part of property management, especially during end-of-month reconciliation. Whether it’s reimbursing expenses you’ve paid on behalf of the owner or adding standalone costs like landscaping or technology fees, ensuring these transactions are properly recorded is vital for maintaining accurate records and transparent communication. Using trust accounting and bookkeeping automation tools, Clearing simplifies the process, allowing property managers to add and track expenses directly on owner statements without hassle.

Clearing provides a powerful and streamlined solution for adding owner expenses to owner statements. With features like transaction management, asset allocation, and reimbursable transactions, property managers can seamlessly handle both pre-paid and outstanding expenses. The system supports pass-through expenses, ensures accurate financial reporting, and allows for the creation of recurring transactions for ongoing fees. The integration with your property management system (PMS) ensures real-time updates, payment automation, and easy collaboration with accountants, helping property managers maintain transparent and efficient communication with owners through Clearing’s owner portal.

If you've already paid for an expense on behalf of the owner, start by logging in to your Clearing account and navigating to the “Transactions” section. Identify the specific transaction that was processed through your bank account.

Once you’ve found the transaction, assign it to the appropriate asset and homeowner and ensure the accounting field is marked as "To owner". This step ensures the expense is correctly categorized as an owner expense.

If the transaction was paid for from a non-trust account and you need to show it on your management statement as income, check the box for reimbursable transactions. This indicates that you are owed a reimbursement from the owner for this expense.

After assigning the expense and marking it as reimbursable, go to the owner statement to review the details. The reimbursed amount will be displayed as an expense to the owner, showing how much they owe you for the transaction.

If you need to add an expense that hasn’t already been paid (e.g., a monthly landscaping fee or technology fee), create a new transaction by clicking “New Transaction” button in Transaction section.

Once clicked, choose the “Expense” option in the new window that opens. Specify the particular date and amount.

For expenses that you didn’t pay for out of your account, such as fees that the owner will pay directly, mark the transaction as a pass-through expense. This ensures the charge appears on the owner statement but doesn't affect your bank reconciliation.

Select a merchant or create a new one. Set the Trust Accounting “To owner”. Also, you can check the reimbursable box if you would like the charge to show up as a revenue on your management statement.

Choose a custom category for the expense (e.g., “Landscaping” or “Laundry”), which will be displayed on the owner’s statement. Assign the expense to the appropriate homeowner or asset.

You can also write additional information as Memo, Note or Description to Owner and attach any relevant receipts for the owner to review.

For expenses that occur regularly (e.g., monthly internet fees), check the “Make it recurring?” box, set the frequency, and specify the active period of time for this type of transaction. This will automate the charge for every designated period, such as monthly, saving you the effort of re-entering the same expenses.

Once everything is in order, click Create to finalize the transaction and add it to the system.

Go back to the owner's statement and verify that the new expense has been added correctly.

Take control of your owner expenses and simplify your financial reconciliation with Clearing’s automated tools. Add, track, and manage expenses easily while maintaining transparency with your property owners. Whether you're handling recurring transactions or reimbursable costs, Clearing helps you streamline the process for accurate owner statements and real-time reporting.

Connect with us today for a free personalized demo and discover how to add owner expenses to your owner statements in Clearing. This will ensure you get reimbursed on any charges your owner should be responsible for.

Explore our comprehensive knowledge base today and dive deep into Clearing's features to embark on a journey towards revolutionizing your owner expense reimbursement practices, and improve your overall management experience.

Clearing is a Financial Technology Company, not a bank. Deposit Accounts are issued by Evolve Bank & Trust, Member FDIC.