Accounting by Guesty is a premium service. You will work with a dedicated accounting professional services team member to understand your accounting needs and help you get started.
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, please review the below.
Business model setup
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 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)
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:
- Check-in
The transaction will be recognized upon check-in, even if the guest paid before the check-in date.
- Check-out
The transaction will be recognized upon check-out, even if the guest paid before the check-out date.
- Nightly
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 (default)
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.