Overview of Arthur Financials

Modified on Mon, 29 Jul at 6:50 PM

This article looks at:

Creating bank accounts
Where can transactions be added
How do transactions get created and where do transactions reside
What are the transaction types
How to distinguish between self-managed and managed portfolios
How does the hierarchy affect what transactions are visible
How does hierarchy affect what you see on an owner statement
What are remittances
A summary of the journey taken by a transaction
What is the payment screen
How payments get reconciled
What is a cashbook
What is the income screen

1. Creating bank accounts

Bank accounts must be created on Arthur in order to receive money into or pay money out of: These include:

Rent account
Deposit accounts
Other business accounts for income transfer

This is linked to creating bank accounts

2. Where can transactions be added

Any transaction added to:

Property - The transaction will apply to all units and tenancies under this property.
Unit - The transaction will apply to all tenancies under at this unit.
Tenancy - The transaction will apply directly to that individual tenancy only
Workorder - The transaction will apply to the workorder at either the tenancy, unit or property the workorder is attached to.

Paid to or by:

Contractor - Will appear on the contractor statement
Owner - Will appear on the property owner statement
Tenant - Will appear on the tenant statement

3. How do transactions get created and where do they go

Manually (one-off transactions)
Automatically (recurring charges)
Via the contractor app to the work order

Once created they will go onto the recipient's statement:

Tenant statement
Owner Statement
Contractor statement

4. What types of transactions are there

The transaction will fall under two main categories:

Charges
Receipts

Charges

Debit the statement (charge to be paid by/to tenancy, owner or contractor)
Credit the statement (credit to be paid to tenancy or owner- negative charge)

Receipts

Credit the statement (receive money from the tenant)
Debit the statement (pay money out to the tenant, owner, and contractor of the statement)

5. How Arthur distinguishes between self-managed portfolios and 3rd party management

Identifying your management type in Arthur’s ‘Financials’ is a fundamental step to ensure that your set up reflects your business. This is especially important if you intend to integrate with cloud accounting software later on. Two types are available;

Direct rent - used by those that self manages i.e collecting the rent for themselves. Direct rent assumes the receipt of rent remains as income on the tenant statement and outgoings are costs to contractors. Together these will show on an income and expenditure report.

Rent charge - used by those who manage on behalf of 3rd Parties e.g agencies who deduct fees from the rent before passing it on. The balance on the property owner statement is a current liability. Rent charge assumes the receipt of rents will go across to a property owner statement to be paid out.

Some Arthur clients are a mixture of both so we suggest setting your default position to the most common management type. To set you default position on rent type

6. How does the hierarchy affect what transactions are visible

Depending on the level you view the statement will determine what transactions you see. This is linked to understanding hierarchy

The property level shows = property-related transactions + unit/s related transactions + tenancy/s related transactions
The unit-level shows = unit related transactions + tenancy related transactions
The tenancy level shows = tenancy related transactions

7. How does hierarchy affect what is seen on an owner statement

Viewed at owner level - This will include all transactions across all properties/units/tenancies in the portfolio on one statement
Viewed at property level - This will include all transactions related to that property/unit/tenancy = tenancy related transactions + unit related transactions + property related transactions
Viewed at the unit level - This will include all transactions related to that unit/tenancy = tenancy related transactions + unit related transactions

This is linked to the article how to set up you remittance preference

8. What is a remittance

Remittances are a collection of charges and receipts that result in a single payment (transaction) being made. Remittances are made to:

Tenants, on a closing statement (i.e end of tenancy)
Property owners, when they are due funds. This is linked to how to apply management fees
Contractor, to pay their bills

Remittances payable to the owner, tenant, and contractor are the net figure paid to them. The remittance will generally be a collection of transactions.

You must never void a remittance as it voids all the linked transactions within. To remove or add further transactions to the remittance must first be unallocated and then adjusted