Managing diverse transactions can be challenging for Short-Term Rental property managers, especially when their are multiple owners involved. Clearing recognizes this complexity and offers a solution by introducing custom categories for transaction allocations and bookkeeping. This feature enables users to create custom categories, enhancing transaction categorization, financial organization, and reporting capabilities.

Clearing's custom categories provide property managers with a flexible and efficient way to categorize transactions accurately. With pre-populated standard categories and the ability to create custom groups and sub-categories, users can align transaction categorization with their specific revenue sources and expense types. This feature simplifies financial management, streamlines bookkeeping, and allows better reporting and analysis.

In accounting terms, this list of categories often refer to a Chart Of Accounts.

Log into your Clearing account and navigate to the "Categories" section in the side menu. Click on "Categories" to access the categories management interface.

You will find a pre-populated list of category groups here. For example, “Maintenance and Repair” is a category group, and you can create different categories below it. For each category, you can edit their details, or delete them if they are not needed.

Once you're in the categories section, you can create a new category. Click on the "New Category" button here.

Specify a category group or create a new one by clicking on the “+” sign.

Once you have specified your category group, you can create a subcategory to classify your transactions. Under the category group section, assign a name to the new category, mention category ID (optional) and click on “Create” button. This will create a new category and store it under the respective category group in the list of categories.

In the transaction section, you can assign a specific category to a particular transaction. Locate the transaction and choose the appropriate category from the available options. The category must already be in your book of accounts and categories in order for it to show up here. This step will ensure accurate categorization of each transaction for effective financial management.

For increased automation, you can also assign rules that set specific categories for transactions that occur on a regular basis. For more information on setting up rules, please refer to the knowledge article dedicated to rule creation 🙂

To see how the categories will impact your reporting, you can click on “Reporting” from within the side menu of the platform. Here you will find that all reports can be filtered by category, for better insights into those types of transactions.

Clearing's custom categories feature is a powerful tool for property managers to organize and handle different types of property transactions. It allows users to create custom groups and sub-categories that can be aligned with their specific revenue sources and expense types. This makes financial management easier and improves the accuracy of reports. With Clearing, you can now simplify the way you categorize and manage your property transactions effectively.

Take charge of your property transactions with Clearing's custom categories feature. Categorize and manage your transactions effortlessly, ensuring accurate financial organization, automation of mundane bookkeeping tasks, and streamlined reporting at scale. Simplify your property management journey and optimize your financial management with Clearing's powerful custom categories.

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