Setting up and using working capital in Guesty

Working capital is the amount of money used to fund operations and meet short-term obligations. Use working capital to protect yourself from liquidity or cash flow problems in case a repair is needed on a property by including this in your agreement with the owner. 

In the agreement, decide together on a set amount that will be held aside from the payout to the owner for this purpose. The amount will only be withheld when the working capital ledger is below the agreed sum.

Set up working capital

Step by step:

1. Sign in to your Guesty account.
2. In the top navigation bar, click the mode selector and select Operations mode.
3. Click Owners.
4. Click the relevant owner.
5. Scroll down to the "Business information" section. To the right, click Edit.
6. In the "Working capital" field, enter the desired amount.
7. At the top right, click Save.

Update working capital amount

Step by step:

1. Sign in to your Guesty account.
2. In the top navigation bar, click the mode selector and select Operations mode.
3. Click Owners.
4. Click the relevant owner.
5. Scroll down to the "Business information" section. To the right, click Edit.
6. In the "Working capital" field, enter the desired amount.
7. At the top right, click Save.

If you lower the working capital today and generate a payment dated a week before, it will accept the new working capital amount.

Remove working capital

To remove the working capital, simply follow the steps above, changing the amount to "0".

View working capital balance

Step by step:

1. Sign in to your Guesty account.
2. In the top navigation bar, click the mode selector and select Accounting mode.
3. Click General ledger and select Balances.
4. To the left, click Ledger and select Owner.
5. To the right, click Columns. In the dropdown menu, toggle on working capital in contract and working capital on hand.
6. At the top right, click Save or Save as and name the filtered view for future access.

"Working capital in contract" reflects the amount of money agreed upon with the owner and "working capital on hand" reflects the current amount in the working capital sub-ledger. When you make an owner disbursement, the amount needed to fund the working capital account will be withheld from the next owner's disbursement.

Manually transfer funds

You can manually transfer funds between the owner statement and the owner's working capital account for more control of the working capital funds and the owner statement balance.

Step by step:

1. In the top navigation bar, click the mode selector and select Accounting mode.
2. Click General ledger and select Posting journal.
3. In the top-right corner, click .
4. Select Working capital as the transaction type. 
5. Under "From" and To", select from the dropdown menu. You can transfer funds from working capital to an owner, or vice versa.
6. Under "Owner", select the specific owner for this transaction from the dropdown menu.
7. Fill in the amount to transfer and the recognition date.
8. Click Add.

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