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Managing financial transactions is a critical aspect of effective property management, especially when trust accounts and operating accounts are involved. However, the process can quickly become challenging when expenses are misclassified or improperly allocated. That’s where the "Reimbursable?" checkbox in Clearing proves invaluable.

The "Reimbursable?" checkbox streamlines financial reporting and expense tracking, preventing costly errors like overpaying or underpaying your management company from trust accounts. These mistakes can lead to imbalances, compliance issues, or delayed payouts. This feature is not just a convenience—it’s an essential tool for maintaining transparency, accuracy, and efficiency in your financial operations.

Imagine juggling various transactions—technology fees, landscaping costs, utility payments from credit cards, and direct trust account debits. Without a proper mechanism, reconciling these at the end of the month could become overwhelming. The reimbursable checkbox eliminates this complexity, ensuring that reimbursable expenses are correctly allocated and reflected in owner and management statements.

By applying the "Reimbursable?" checkbox, you can simplify expense allocation, reduce errors, and gain full control over your financial reporting. Ready to make your financial processes more efficient and error-free?

Dive into this guide for detailed steps on leveraging the reimbursable checkbox in Clearing.

Log in to Clearing and navigate to the “Transactions” section in the left menu where you can view all transactions.

Carefully review the list of expense transactions to identify those that are eligible for reimbursement.

If you want to look at all transactions through a specific bank account that is connected, or over a specific date range, you can always apply filters or run a bank reconciliation over the date range of interest through the “Menu” button as shown below.

Once you’ve identified which transactions are reimbursable by owners, check the "Reimbursable?" box for those eligible transactions. Additionally, ensure that the "Accounting Field" is set to “To Owner.”

This setup ensures that the expense will be reimbursed by the owner, appearing as an expense on the owner statement and as income on the management statement or management report.

Navigate to the “Statements” section in Clearing. Click on “Owner Statements”, then select the “By Owner” option.

Select the relevant owner and date range to view the statement and confirm that reimbursable expenses have been applied correctly. To verify this, you can either scroll to the bottom of the statement or uncheck the "Show Summary by…" options. This will display all individual transactions, making it easier to review the details.

Confirm that the owner is correctly charged for all reimbursable transactions. This ensures accuracy in expense allocation and maintains the trust account balance.

When it's time to pay your management company at the end of the month, run a “Management Statement” or “Management Allocation Report” for the relevant period to review reimbursable expenses. Only transactions marked with the “Reimbursable?” checkbox will appear as income allocated to your operating account.

Navigate to the “Statements” section in Clearing, then select “Management Statement” and choose the “By Owner” option.

Create the Management Statement by selecting the desired date range and owner. Ensure that reimbursable expenses are properly marked, as these will appear as “reimbursable” on the management statement in the individual transactions.

Review the Management Statement to confirm that only transactions marked as "Reimbursable?" (e.g., journal entries, operating account expenses, credit card expenses) are recorded as income from the trust account.

Navigate to the “Reporting” section and select “Allocation Reports”, then choose “Management”.

Choose the desired date range and click “Generate”. You can also filter these for a particular owner using the “Add Filter”, or summarize them “By Owner”.

Once generated, review the report and click on “Reimbursable expenses” line item - the title is a link - this will show all the transactions that are reimbursable to the management company.

Clicking on this section will allow you to drill down into the data, cross-check reimbursable transactions, and validate the allocations. This step is essential for ensuring accurate account reconciliation and proper expense allocation.

If mistakes occur—such as forgetting to apply the “Reimbursable?” checkbox or marking an ineligible expense—correct them promptly through the transaction details, or by returning to the “Transactions” section and finding the relevant transactions by filtering for it.

The “Reimbursable?" checkbox is more than just a feature—it’s a fundamental tool for efficient and accurate financial management. Mastering its use allows you to streamline expense allocation, maintain a balanced trust account, and ensure compliance with financial reporting standards.

Are you ready to simplify your financial management and achieve unparalleled accuracy with the Reimbursable Checkbox functionality in Clearing?

Contact us today for a personalized demo and learn how to use the reimbursable checkbox in clearing!

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Clearing is a Financial Technology Company, not a bank.