At the end of each financial year, Landlords are required to provide their Tenants with an audited annual statement of actual outgoings, usually set to be delivered within a certain time frame after the financial year-end.
Before the audited statement can be signed off and provided to the Tenant, a reconciliation must have been made to calculate the variance between the amount of the budgeted outgoings already paid by each lessee, and the number of actual outgoings incurred.
Reconcile your outgoings
Progen can help you with this time-consuming and sometimes complicated activity by automating the process. The software contains the functionality to handle all potential outgoing rules specified in a lease, notably:
- Different ways Statutory and Non-Statutory expenses need to be treated
- Whether the contribution of the outgoing is based on the net lettable area (NLA) or a different percentage
- If the calculation is an increase over a Base Year
As a part of the process, which includes the creation of the adjustment transaction, you will be able to download a report for each lease explaining the reconciliation. This report and the adjustment invoice, or credit note, can easily be printed or emailed directly from the system.
If you take the time to set this process up now, it will save you a significant amount of time reconciling your outgoings next year and for years to come. Progen also makes it possible to use a projection tool to forecast your outgoings many years into the future. Worth noting is that Progen’s reconciliation process can take any tenancy changes into consideration if this occurs partway through an outgoings period.
Budget for the cost
Whether you manage leases from a Landlord’s or a Tenant’s perspective, it’s important to budget for your costs, including outgoings. Progen can be used to handle both sides of the equation to help you stay on top of what what you should be charging your Tenant, or what you should be paying your Landlord. Knowing where you can cash-in (or save) may be crucial for your cash flow, especially in uncertain times like these.
Progen can assist you in creating an outgoings budget, based on the actuals from your previous reconciliation. The system then automates the process of creating a charge line for estimated outgoings to be charged or paid.
Do you want to know how you can simplify your outgoings process next year? Don’t hesitate to contact us today and our experienced Support team will guide you on what you need to set this up.
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