Financial Flow
Explained
Appfolio Bookkeeping
We outsource bookkeeping to a company that specialized in appfolio.
They bill us $20 per unit, per month for the clicks built into the procedures and a little extra for 1099s.
This cost is not billed to the property.
Anything else is billed to the property at $300/hour + the hourly rate of our team member involved.
That said, we avoid anything custom to reduce expense billed to the property.
Billing - Management Plan
Appfolio bills the monthly cost for the Management Plan on the 1st of every month until the property is 100% inactivated in appfolio.​
This applies even if the property is vacant.
Rates for discontinued plans are increasing $10 each month until all owners migrate or inactivate.
Migrate to a new plan in appfolio by signing the Management Agreement.
Billing - Rent
Rent due date:
During move-in rent billed when the lease is sent and is due either at the time the lease is signed or before the lease start date, whichever is sooner.
After that, Appfolio bills rent on the first of every month.
Tenants can pay with e-check, debit, credit or with cash using PayNearMe.
The humans in our organization are not authorized to accept payments of any kind.
A 10% late fee is applied to all unpaid balances on the 5th at midnight. This fee is retained by Manager.
Billing - Subcontractor Invoices
Subcontractors submit invoices to the Maintenance Coordinator who dispatched.
If the Coordinator feels the invoice is a fair & accurate price for the work, they forward the invoice to the bookkeeper.
The Bookkeeper creates the bill, applies a markup, & attaches the invoice to the bill, which flows to the Owner Statement.
Please note: Larger contractors take more time to send invoices, so it's common to see bills for the Labor, Material & Coordination on the Owner Statement much sooner than the subcontractor's expense.
Billing - Material, etc.
The maintenance team purchases the material to complete the Work Orders using their company credit card.
They attach the receipt to the credit card transaction.
The Processor forwards the receipt to the bookkeeper.
The Bookkeeper creates the bills, applies a markup, & attaches the receipt to the bill which flows to the Owner Statement.
If we need to return material, we issue a refund to your account. However, we do not refund the markup because that is billed to cover the cost of bookkeeping and that work was compelted.
Billing - Hourly rates for our employees
Hourly rates are different based on the team member performing the service but the billing process is the same.
TIME TRACKING
Time is tracked in Work Orders using the appfolio time clock.
Appfolio prevents the timer from running on more than one Work Order at the same time.
When a Work Order is marked as "Done", the Work Order appears on the Bookkeepers report for billing.
BILLING FOR TIME
When the bookkeeper clicks to create the bill, Appfolio multiplies the minutes logged, times the hourly rate for that team member. The bookkeeper doesn't do the math.
Each bill contains the description of the work performed by the team member when they stopped the timer.
Appfolio doesn't have spell-check, so please excuse the spelling and grammar of the maintenance guys. We decided not to bill more time to the property to have a clerical employee spell-check their notes.
Monthly Owner statement
The Owner Statement is a simple list of all debits & credits, with receipts & invoices, per property, during a given time period.
It's not a profit and loss statement, balance sheet, etc. If your CPA needs more, you'll need to get a bookkeeper.
Owner statements are issued for all owners at once. It takes the same number of clicks to issue 1 statement as it does to issue 1000, so we do not issue individual statements outside the workflow.
Distributions
We typically issue Owner Distributions by Direct Deposit around the 20th of the month. That's not a guarantee. It's a goal that we typically achieve it. Why the 20th?
Tenant receivables take 7-10 days to clear the bank.
Issuing on the 20th give payments made on the 9th, time to clear.
If there's an tenant NSF after we pay owners, the owner must login and make an Owner Contribution so there isn't a negative balance on the property in our trust account.
Appfolio tracks everything on a per property basis.
That's a waste of everyone's time so we go with the 20th.
Year-End: Annual Statements
For owners on the Silver, Gold & Platinum Plans we create and publish an annual statement so you have a single document to send to your CPA or bookkeeper.
If your property is on the Bronze Plan or a discontinued plan, you can still get the data by downloading each monthly statement.
Year-End: 1099
Once December is reconciled and the year is "closed", the bookkeeping company publishes the following in the Documents tab in AppFolio:
1099
Annual Cashflow Statement
You'll get an email when they are published. To view the statement, please click the button in the email or click the Documents tab in AppFolio.
Click here for more info.
FAQ
Why have I not received my Owner Statement yet this month?
​We're not done with the bookkeeping. Once bookkeeping is complete for ALL PROPERTIES, we issue statements to ALL OWNERS in a single batch. Yes, one property can hold up the process for everyone. That's why we avoid doing anything custom.​
Can you just issue my statement?
Yes but you won't like the cost of custom bookkeeping ($300/hour) for anything that is "outside of the system".