Getting started with Accounting

Organize and keep track of your business’ finances using Guesty's Accounting solution. It will automatically record transactions and generate reports based on your preferences. See below how Guesty keeps track of your accounting needs.

Accounting elements

Guesty uses universal accounting terminologies in recording transactions.

• Account: A recording unit used to collect and store information on transactions of a similar classification.
• Asset: A property or right owned by the business.
• Liability: A payable or an economic obligation that the business needs to fulfill.
• Capital: The total value of investments in the business. It is equal to the total assets after all liabilities are fulfilled.
• Income: An increase in an asset or a decrease in a liability.
• Expense: An increase in liability and a decrease in an asset.

Trust accounting

Guesty's accounting solution functions under the assumption that your business is managed using a trust account. Learn more.

Accrual accounting

Transactions are recorded when money is moved in addition to when services are rendered.

Guesty’s accounting solution uses the accrual accounting method to record transactions in your account. Transactions are recorded when payments are made, in addition to when services are provided.

A payment transaction is recorded when a guest pays for their reservation ahead of time. At the time of their reservation, another transaction is recorded to show that the services owed to the guest are rendered.

Double-entry bookkeeping

Each transaction is recorded in at least two accounts in debits and credits. A debit is an increase in an asset account or a decrease in a liability account. A credit is an increase in a liability account or a decrease in an asset account. Learn more.