Only team members with permissions to edit accounting settings can perform this task.
When using our accounting solution, you can choose between two accounting methods based on your regulations requirements or personal preferences. Both methods will recognize revenue based on your business model settings, such as at check-in or check-out:
- Accrual basis: Revenue and expenses are recognized when the service is provided, even if the actual payment has not happened yet. This means you can recognize revenue at check-in, even if the guest only pays at check-out. This allows you to pay your cleaning vendor, for example, before receiving payment from the guest at check-out.
- Cash basis: Revenue and expenses are only recognized when the service is provided if the actual payment already happened. If you recognize revenue at check-in, but the guest has not paid yet, you will not be able to pay your cleaning vendor until they do.
Follow the instructions below to choose your accounting method.
If a reservation is partially paid between check-in and check-out, we recognize the revenue up to the amount the guest paid. The following journal entries will be recognized:
- Net rental income (as defined in your business model)
- PMC commission
- VAT to charge the owner for the commission (if applicable)
Step by step:
- Sign in to your Guesty account.
- In the top navigation bar, click the mode selector and select Accounting mode.
- Click Setup.
- In the menu to the left, click Accounting method.
- Under "Which accounting method do you prefer?", select Accrual basis or Cash basis.