Switching between accrual and cash basis accounting

Accounting by Guesty is a premium feature available to Pro users only. Please contact us to discuss activating it.

Important:

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 local regulation requirements or your 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 or watch our video to choose your accounting method.

 

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 Setup.
  4. In the menu to the left, click Accounting method.
  5. In the top-right corner of the page, click Edit.
  6. Under "Which accounting method do you prefer?", select Accrual basis or Cash basis.
  7. In the top-right corner of the page, click Save.
  8. Read the information in the pop-up and click Change accounting method to confirm your selection.

The new method will only apply to new reservations. Ongoing and past reservations will still be based on the method you used up until now.

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