Rent Collection Process

The rent collection process consists of several steps, beginning with uploading your bank statement to Xero and ending with payment uploads at the end of each day. Some of these procedures may differ based on the bank you use and how you regularly process payments, but the following steps only apply to LoftyWorks and Xero, so the process will be the same.

Reconciling Transactions

When it comes to client accounting and rent collecting, we suggest to start this procedure first thing in the morning. This is done to ensure that the account information is up to date and correct. For example, if you try to follow rent arrears first thing in the morning, you may end up chasing tenants who have already paid, but the records have not been updated to show this. Also, on busier days, payments may take longer, and you don't want to risk not leaving yourself enough time to finish making the payments.

To upload or import your bank statement into Xero, first go to the dashboard and then click Accounting in the options at the top of the screen, followed by Bank Accounts in the drop down list.

This will then take you to a screen where you can either set up your bank account or import your bank statement if you haven't previously. This can be accomplished by connecting your bank feed to Xero so that it syncs automatically each day, or by manually importing your daily statement using the various formats available from your bank. There is also the option to download the CSV file template and generate your own bank statement manually.

Return to the main screen once you've imported your statement or Xero has synchronised with your bank feed. The Dashboard will provide a list of all your bank accounts. If there have been any transactions, there will be a "Reconcile XX Items" option beneath the bank account details. By clicking on this, you will be taken to another page that lists the unreconciled transactions that need to be reconciled.

If there is a corresponding invoice in Xero for any receipts, Xero will notice this and propose that you reconcile the receipt and the invoice.

Please see the example below:

If you are satisfied that the receipt and the invoice match, click OK, and the receipt and the invoice will be reconciled. If the invoice is not the correct match, but it indicates that there are other alternatives, such as other invoices for the same amount, you will be able to view these as well to choose the correct one to reconcile.

If there is no match, it is possible that the wrong amount was transferred, that it was a partial payment, or that it was an unexpected payment. If this occurs, it will need to be reviewed on a case-by-case basis.

Any payments made from the bank account will be included in this list and must be reconciled. If you're paying through LoftyWorks and Xero, there should already be a corresponding Bill to reconcile the transaction against when you get to this list. If there is nothing displaying to reconcile against, then this might be the indicator that there has been an error and the money did not leave the bank account or has gone out for the wrong amount, or it could be that you have made a payment manually and not recorded this in LoftyWorks and Xero.