Account Setup in FalconPro Real Estate Software: Complete Guide

Account Setup in FalconPro Real Estate Software: Complete Guide

Introduction

Setting up your chart of accounts is the backbone of all financial transactions in FalconPro Real Estate Software. Proper account setup ensures accurate revenue recognition, collection tracking, and financial reporting—whether you own properties or manage them for others. This guide explains both primary accounting scenarios, step-by-step setup instructions, and best practices for property managers and accountants.

Accounting Scenarios in FalconPro

FalconPro supports two main scenarios for account setup:

Scenario 1: Owned Properties (Monthly Revenue Recognition)

  • Purpose: For companies that own properties and need to recognize rent revenue monthly, independent of collections.

  • Key Features:

    • Maintain customer accounts and receivables under assets.

    • Recognize monthly rent revenue based on contract, not on collections.

    • Track unearned revenue (liability) and earned revenue (income).

    • Suitable for owners who want monthly revenue-based reporting.

Scenario 2: Managed Properties (Collection-Based Accounting)

  • Purpose: For companies managing properties for others, where owners care only about collected amounts.

  • Key Features:

    • No need to maintain customer accounts or receivables.

    • Revenue is recognized only upon collection (cash, cheque, bank transfer).

    • Suitable for management contracts where only collections matter.

Step-by-Step Account Setup

1. Chart of Accounts Structure

  • Assets: Customer accounts, receivables, bank accounts, cash collection, BDC (post-dated cheques) received.

  • Liabilities: Unearned revenue, refundable security deposit, unearned cheques.

  • Income: Earned rent revenue, commission, administration fees, etc.

  • Expenses: Maintenance, office expenses, etc.

2. Property and Building Account Assignment

  • Assign accounts for each property/building or use master accounts for all.

  • For each building, set up:

    • Customer accounts (cleared and uncleared)

    • Advance/unearned revenue accounts

    • Profit/revenue accounts

    • Discount accounts (if applicable)

    • Security deposit and other fee accounts

3. Contract and Fee Handling

  • Contract Voucher: Debit customer account, credit unearned revenue.

  • Fee Voucher: Debit customer account, credit related fee (e.g., security deposit).

  • Receipt (Cash): Debit cash collection, credit customer account.

  • Receipt (Cheque): Debit BDC received, credit customer account (uncleared); upon clearing, debit BDC, credit main customer account.

  • Monthly Revenue: Debit unearned revenue, credit earned rent revenue.

4. Scenario-Specific Variations

  • Scenario 1 (Owned): Maintain customer accounts, receivables, and monthly revenue recognition.

  • Scenario 2 (Managed): Only collection accounts and owner accounts are maintained; no receivables or monthly revenue posting.

5. Fees and Cost Center Setup

  • Assign accounts for each fee item (e.g., security deposit, commission, Ejari) per building or use master accounts.

  • Link all transactions to the relevant cost center (building/unit) for detailed reporting.

Example Account Flows

Transaction Type Debit Account Credit Account
Contract Creation Customer Account Unearned Revenue
Security Deposit Fee Customer Account Refundable Security
Receipt (Cash) Cash Collection Customer Account
Receipt (Cheque) BDC Received Customer Account (Uncleared)
Cheque Cleared Bank BDC Received
Monthly Revenue Unearned Revenue Earned Rent Revenue

Customization and Flexibility

  • One vs. Two Customer Accounts:

    • Maintain separate accounts for cleared and uncleared cheques if you want detailed tracking in the ledger.

    • Use a single customer account for simplicity if you prefer to track cheque status via reports.

  • Property-Specific vs. Master Accounts:

    • Assign accounts per property for granular control, or use master accounts for all properties.

  • Scenario Selection:

    • Mark each property with the appropriate scenario in property setup (contract voucher, revenue voucher, fees voucher).

Best Practices

  • Carefully plan your account structure before entering transactions.

  • Assign accounts and cost centers for every property and fee item.

  • Regularly review and update account assignments as your portfolio grows.

  • Consult with your accountant before finalizing the setup to ensure compliance and reporting accuracy.

  • Use the system’s reporting tools to analyze balances, collections, and revenue by property or portfolio.

Frequently Asked Questions (FAQ)

Q1: Can I use both scenarios for different buildings?
Yes, FalconPro allows you to assign different scenarios to each building based on ownership or management needs.

Q2: How do I track uncleared cheques?
Maintain a separate BDC (uncleared cheques) account or use detailed cheque reports for tracking.

Q3: What if I want to assign specific accounts per building?
Set up accounts in Administration > Fees Accounts and link each building to its respective accounts.

Q4: How do I handle discounts or additional fees?
Assign discount and fee accounts in the property or master setup and link them to the relevant transactions.

Q5: Can I make changes after transactions have started?
Account setup should be finalized before entering transactions. Changes after going live may require adjustments and should be done with caution.

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