How do I prepare for Financial Reporting?
In this article, we will explain how to prepare for financial reporting and how to understand the feature.
As you can read in the article about Formula Wizard, the system can create some formulas for you, default formulas that in the major part of the cases will work to create reports from different channels. These formulas cannot be deleted once created, but you can always edit or hide them.
All the financial information you can visualize in Financial Reporting, Analytics, Rental Activity, or Occupancy Reports comes from the formulas you have previously created.
Formulas can be set from the system as a whole, or they can be edited from a listing specific. If you go to Financial Reporting > Financial Settings you will visualize all the existing formulas for the whole system. Please note that you can edit and customize existing formulas as well as create new ones; also, when editing or creating new formulas, you can always use values as well as formulas within formulas.
Before you start using the financial reporting feature, you must review the following sections of your account to make the process as smooth as possible.
Change the financial reporting currency symbol
This option will only change the symbol in financial reporting. There will be no currency conversions.
You can find this option by following the next steps:
- Go to your Hostaway Dashboard > Financial Reporting > Settings
- Click on "Additional settings" > Change the financial reporting symbol
Setup your taxes
Different channels send taxes to Hostaway in different ways, making it difficult to compile these values for accurate financial reporting. This is where adding taxes to Hostaway's financial settings comes in handy. Therefore, before creating financial reporting for your listings, you must configure the taxes you would like to apply to those listings
These settings will apply to all channels except for Airbnb and Booking.com where the Taxes mapping option should be used. We'll be the source of truth for Direct, Booking Engine, WordPress plugin, Vrbo, and Marriott reservations, plus any add-ons entered in the guest portal. Therefore, setting up taxes will increase the total price for those channels. Hostaway will use this value to calculate Expedia tax values as well
New reservations will contain the tax after you "Add" it
To add your taxes you should follow the next steps:
Go to your Hostaway Dashboard > Financial Reporting > Settings
Click on "Add tax"
- Select the "Tax Type"
- Select the "Amount", and if it is a percentage or a flat fee
- If percentage, select if it should apply to the Base rate and/or cleaning fee
- Select if you would like to apply a different tax amount based on the number of nights
- Click on "Add"
This will set up a tax on all your listings. If you need to change a specific listing, you can go to Listing > Edit > Financial Settings > New Taxes
- When editing an existing tax in Financial Settings, it will update all unchanged taxes on the Listing level. If you have manually changed the tax for a listing, it can only be edited on a Listing Level. Editing on a Financial Settings level will not update this listing
- Taxes will only be calculated for newly received reservations
- New Taxes will be used to calculate the tax amount for external channels, for the Financial Reporting. We will not take the tax info that external channels send to us since they are too different depending on the channel
- Taxes are used to calculate the total price for Hostaway channels (direct reservations, Booking Engine, and WordPress plugin)
- For Booking.com and Vrbo we export the Property rent tax % under Listing > Financial fields as well. These taxes apply to all listings unless a different tax is set on the listing page
- For Airbnb and Expedia, taxes should be managed in the channel
Create or Edit your Financial formulas
Formulas are mathematical calculations based on reservation fields. For all reservations (except iCal) we have Financial Formulas.
We have created some default formulas for you that you can't delete but you can edit. To create a new formula, you can go to Hostaway Dashboard > Financial Reporting > Financial settings > Add custom formula according to the business requirements.
Read your reports
We have built several charts for you to have an idea of how you are performing. You can use filters to have more accurate information.
All reservation information is aggregated in this report. You can filter and also download 3 different report types.
This is another report based on your occupancy.
Hostaway Reservations Breakdown and Optional Fees
By activating Financial Reporting, you are also activating Hostaway reservation breakdown and Optional/discount fees.