Accounting by Guesty is a premium service. You'll work with a dedicated accounting professional services team member to understand your accounting needs and help you get started.
Guesty Accounting is a trust accounting platform and not a full operational accounting system. Learn more about using separate bank accounts for trust accounting.
Make sure your user roles and permissions include Admin or Accountant to be able to update Accounting information.
The first step in using Accounting is setting up your business models. Calculations in other parts of Accounting, like folios, reports, and owner statements, are all based on your business model setup. The business models should be based on your existing accounting setup to ensure a smooth management of your finances in Guesty.
To prepare in advance for your Accounting onboarding call, watch this short video and review the below.
Prerequisite financial and operational setup
Proper setup of financial and operational data is critical to ensure seamless integration and functionality. The below should be set up in Guesty before starting to use Accounting.
Verify your Guesty account information
Make sure that your company information, including address and time zone, are accurate. If edits are needed, see details about what you can change yourself and when you need to contact us.
Taxes configuration
Verify that taxes are correctly configured for all listings.
Confirm which taxes are remitted by channels and which taxes are remitted by the PMC/owner.
Additional fees setup
All additional fees must be entered in Guesty before setting up a new business model.
Fees should be configured at the account level (under Financial Settings) or at the listing level, even if they will only be applied in the future.
Listing connection
Ensure all listings are connected and synced with relevant booking channels.
Owners setup
Ensure that owners are added to Guesty and you assign an owner to each listing. Listings cannot be assigned to business models if they do not have an owner assigned.
Channel commission setup
Set up channel commissions for all integrated channels before uploading reservations.
For VRBO, only set up commission if you are on PPB (pay per booking).
If channel commission is not configured before uploading reservations, it will not be applied to those reservations.
Reservations import and validation
Confirm that all reservations are fully imported into Guesty.
Validate reservation data for completeness and accuracy. Validate at least one reservation per source (this is especially important for uploaded reservations). Make sure to validate the following items per reservation in the guest folio:
- Total amount paid
- Channel commission
- Accommodation fare
- Cleaning fee
- Additional fees
- Taxes
If needed, please submit a support ticket in advance to correct any inaccuracies.
Business model requirements
When does your fiscal year start?
Let us know what month you fiscal year starts. We'll set this up on the backend for accurate year-to-date reporting on owner statements.
How many business models are needed?
It's important to consider various factors to determine the number of business models required. Keep in mind that multiple listings can be assigned to a single business model. Consider the following options:
-
Per PMC Commission
- This can be based on a percentage, for example, 15%, 20%, or 25%
- Per owner
- Per listing/property
- Based on varied recurring expenses or owner charges
When do you want to activate Accounting?
The Accounting activation date determines when the business model will apply and calculate the revenue share to your reservations. Reservations with a check-in or check-out on and after the activation date will be included on your owner statements.
How do you calculate net rental income?
Clarify your company's net rental income (NRI) by determining what basis is used to calculate your PMC commission. Examples:
- Accommodation fare only
- Accommodation fare + add-on fees
- Net income (accommodation fare less channel commission)
You can select flat fee expenses to include as a deduction in your NRI calculation. (In Pilot) Include percentage expenses, such as payment processing fees.
How do you share revenue for fees?
Confirm the revenue share between the PMC and owner for basic and additional fees. Basic fees include cancellation and cleaning.
Do you have recurring owner charges or expenses?
Decide on recurring owner charges or expenses, if applicable:
- Determine the amount or percentage
- Specify frequency
- Do conditions apply to all or specific sources?
What is your preferred revenue recognition date?
Identify your revenue recognition date from one of the following:
The transaction will be recognized upon check-in, even if the guest paid before the check-in date.
The transaction will be recognized upon check-out, even if the guest paid before the check-out date.
The transaction will be recognized on a nightly basis, with a journal entry created for each night separately. For example, if a reservation runs from 25 May until 5 June, the transaction will be recognized for each night even though they are in two different months.
Accounting method
Verify your accounting method as either accrual or cash basis.
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.