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In property management, clear and accurate financial records are vital for building trust with property owners and ensuring smooth operations. One key aspect of property management is creating and managing financial statements that outline various charges and payments. These statements help property managers track income and expenses, reconcile accounts, and ensure financial transparency.

While owner statements focus on payouts to and from owners, management statements serve a different purpose. They track the net income earned by the management company. It is is combination of:

As a result, and following the principles of trust accounting, the net amount reflected in the management statement should be the amount to transfer from the trust account to the operating account.

Management statements can also be used in the co-hosting model to understand how much the property manager need to invoice the owner. Indeed, in this scenario, the owner is paid directly by the booking platform, and the management company needs to invoice the owner for services provided.

For many property managers, especially in co-hosting situations, managing and generating these management statements can be a complex task. Balancing multiple charges, reconciling bookings, and ensuring that all transactions are recorded properly can be time-consuming and prone to errors.

This is where Clearing steps in, offering a streamlined solution to these challenges. With Clearing’s automated tools for financial reconciliation and detailed reporting, we make it easier to create and manage management statements, ensuring accuracy, transparency, and efficiency in every financial report generated.

Clearing’s management statement feature is designed to streamline financial reconciliation and enhance clarity for property managers, co-hosts, and owners. This statement tracks management-specific charges like processing fees, cleaning fees, and commissions. By utilizing functionalities like automated PDF generation, in-app payments, and in-app invoicing, Clearing ensures a user-friendly and efficient approach to financial management for property management companies and co-hosts alike.

Log in to your Clearing account and navigate to the “Statements” section on the left-hand menu. Select “Management Statements” option to access tools for creating and managing management-specific financial statements.

Click on the “By Owner” option and then choose the owner for whom you want to generate a management statement for - this will mean, all the transactions “to management” that are related to that owner’s assets.

Select the desired date range.

Once the date range is selected, the system will generate a management statement for the defied period. All the displayed items will include transactions marked to management in the accounting field, that are related to the assets of the specific owner selected, over the specific recognized date range.

Click on any booking to see the full booking details.

Verify that the management-specific charges (i.e processing fee, cleaning fees, and/or reimbursable charges) are accurately marked to management in accounting field. This should reflect all the charges that will be revenues or expenses that the management company is responsible for.

Use Clearing’s summary tools (i.e summary by booking, summary by asset & category, summary by category, or summary by channel) to organize and analyze data based on your needs.

If any manual transaction adjustments are necessary, or a transaction is missing, adjust them prior to saving by clicking on the “Add Transactions” button. You can also perform a bank reconciliation in the “Transactions” module to make sure all transactions are allocated properly, and that no erroneous or duplicate charges exist.

Once everything is finalized and reviewed, click on then “Save current statement” option.

You can edit the statement anytime and click “Save Current Statement” to save the new adjustments.

Once the statement is saved, you can click on PDF button to review the PDF statement.

Once you click the PDF icon, you can click the “Download” button to download the statement as a PDF directly from the app.

Select the relevant statement(s), and then click on “Actions on statements” button - here you will find following options.

If you have invoiced an owner for a management statement, and collected the funds, you can check the box for “collected” once the payment has been received.

Go to the “Documents” section from left hand menu and select the “Invoices” column.

If the owner is not set up as a customer, click the ”Manage Customers” option.

Here click on “+ Customers” button to add new customers.

Choose “Generate a customer for each existing owner” option, and then click on the “Create” button. If a different option is more suited for the customer you are trying to add, feel free to choose a different option, like “Create a single customer”, “Generate a customer for each existing recipient”, or “Import customers from a Stripe account”.

Now click on “New invoice” button to create a new invoice based on the financials outlined in the relevant management statement. You can collect money through the invoice using Stripe, or collect via an ACH transaction from the owner. You can send the invoice as an email from the system, or download it as a PDF if you prefer to send it through your email service provider.

That’s it!

Take advantage of Clearing and revolutionize the way you manage financial operations and management statements!

With powerful tools tailored for Short-Term Rental property management companies and co-hosts alike, Clearing simplifies workflows, ensures financial transparency, and saves time through financial statement automation.

Ready to streamline your property management finances?

Contact us today for a personalized demo and learn how to create and manage management statements in Clearing.

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