Budget by Area: Comprehensive Video Guide

  • Updated

The term "Budget" varies depending on the region. For our Asia-Pacific customers, it's often referred to "Budgeted Outgoings." European users will see it labelled as "Service Charge," while those in North America will find it listed as "Operating Expenses." The terminology used in the app adjusts based on your location. For additional clarity on regional vocabulary, please see our Glossary of Regional Terminology.

Managing property budgets and services charges can be a complex and time-consuming task. However, with the right tools and techniques, this process can be made efficient and result in optimised financial outcomes. This article delves into the Budget by Area functionality, covering various aspects of the process throughout the budget / service charge period.

This article serves as your guide to handling property budgets and service charges effortlessly with the Budget by Area feature. For a more comprehensive insight into the topics covered in this article, we have provided a detailed video tutorial. The tutorial videos offer step-by-step guidance and practical demonstrations to help you navigate property budget management and services charges effectively:-

1. Creating a New Budget by Area

Begin by formulating detailed budgets catered to different areas within your property. This ensures your financial tracking is precise and proportional to the area size, or based on the leases/tenant's percentage allocation.

  • Understanding the chart of accounts/nominal codes

  • Calculating area sizes
  • Applying percentages or concessions to a lease/tenancy.
  • Adding and reviewing a draft budget

2. Structuring Budget Schedules

Learn the importance of budget schedules and explore diverse approaches to allocating expenses.

  • Selecting the appropriate allocation method
  • Handling multiple schedules with the same expense
  • Assigning an expense to a schedule

3. Approving Budgets

Seamlessly advance your budget through the approval process with our supportive tools:

  • Steps for approving a budget
  • Strategies for invoice allocation
  • Incorporating owner contributions
  • Utilizing approval templates
  • Anticipating potential pitfalls


4. Modifying a Budget

Should changes be necessary in an approved but unreconciled budget, modifications are manageable:

  • Integrating a new lease/tenancy
  • Adjusting budget details
  • Using the Skip & Approve option

5. Rolling over a Budget

As your budget period concludes, ready your finances for the upcoming term using the budget rollover function:

  • Generating a sequential copy of the existing budget
  • Approving or reconciling continuity planning


6. Budget Reconciliation

Ensure that your budget accurately reflects financial activities by mastering reconciliation practices:

  • Allocate income correctly across different areas and leases/tenancies.
  • Manage schedules with a detailed eye on expenses and income.
  • Lock in and reconcile the budget to prevent further changes.
  • Distribute comprehensive reports to relevant stakeholders as needed.


6. Budget Reporting

Finally, explore and utilize the various reports available for budget by area, enhancing your visibility and control over the financial aspects of your property management.

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