Owners book facilities within the condo and paid a relatively small fee from tens to hundreds of dollars or when there are deposits involved.
Not many condo have Paynow to be directly transferred to the MCST bank account, so handling of cash must still be managed properly.
Many a times, these amount are recorded as a general ledgers item, ie, Debit cash and Credit the various revenue account when general ledger receipts are non-trade (others)related
Many reasons were given …
1. Amount is too small, recording becomes administratively a hassle
2. There are refunds or returned of cheques if there are no damage to the facilities
3. It is not many in a month
In my opinion, it is revenue in nature, so must be recorded as an AR item ,
Dr Receivables XXXX
Credit Revenue 1, YYYY
Credit Revenue 2. YYYY
Also, for income tax purposes, all revenue (facility booking fees) need to be accounted for of the date, and invoice be generated with serial number
Technically speaking , it should hit the SP account.This will ensure transparency, when I receive my monthly statement of accounts.
Imagine if I am the SP, I see the SOA…there was a record of my booking and an acknowledgement of receipt ..versus without the facilities booking fee.
Another feedback is the booking maybe a tenant and so it should not be reflected in the SP account.
Yes, and no.. Owner will also be informed of the booking or otherwise create a tenant account.
Will the money go missing. Where is the accountability and control of cash?
Also most of these are transacted at the ground and may or may not flow to the accounts department, so there is another weakness here.
We heard so many cases of criminal breach of trust from as small amount of a few thousands of dollars to hundreds of thousands to millions of dollars.
You definitely do not want this to happen to your project and reflect badly on your operation.
Contact us for more information via our sales whatsApp +65 8148 8824 for more information.
Writer : Choo Hong Peng,
Chartered Accountant, Singapore
Email : sales@realtimme.net
As at 12/8/2020
Written by mcst
Chartered Accountant, Singapore • Certified ACTA Trainer • Business Mentor
With over 12 years of experience in MCST accounting and property management, our team provides expert insights and practical solutions for managing agents and property owners.
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