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How do I use the Budget Tool? (Accounting > Budget)


There are THREE video's at the bottom of the page.

Instruction

This tool is currently released in “Preview” Mode. We hope that you will provide us with suggestions. 

Create a Template

  1. A template is composed of GL Account groups
  2. Five default groups are created by ResMan, but you can add more by using the ADD button.
  3. Typically you will only have 1 template that you will use yearly, but it is possible to have multiple templates.
  4. A Template “arranges” (or rearranges) your GL accounts in a certain order, to make it easier to work on your budget.
  5. Create the template. Default Account Groups are:
  • Rent (Gross Potential Rent, Gain/Loss to Lease, Vacancy Loss)
  • Mgmt Fees (pulls management fee GL Accounts from Mgmt Fee settings)
  • Turn Costs (Initially has no GL accounts. You will add the expenses that comprise your turn costs)
  • Other Income/ExpenseThese will hold any GL account that you have not placed in another category
  1. If you click into a Group, on the left you will see UnMapped & Mapped accounts
  2. You can never have 1 GL account in 2 groups OR a missing GL account
  3. Examples of Possible other Account Groups: Deductions, Salaries, Marketing

Create this year’s budget file

  1. Any year that has 12 periods defined will display (Admin > Settings, Periods)
  2. Click Create
    1. You can have 1 budget for both accrual & cash, or you can have the same budget for both

Complete the initial budget settings

  1. Default Cost Per Turn Average – starting point for the Turnover Cost calculations
  2. Future Period Amount
    1. If you start your budget in Sept., you won’t have Sept-Dec numbers. So choose whether to use Prior year actuals OR the current year’s budget for those numbers.
  3. Future Period Start
    1. What month do you want to start using those numbers. Example: September of your current year.
  4. Enter the number of vacancies at Year-End for each unit type

Populate your budget

  1. Some areas (buttons) have internal calculations (Rental Income & Turnover Costs), others are straight data entry

Turnover WorksheetDown/Admin/Model Unit Tab

  1. The purpose of the Turnover Worksheet is to project what your MI’s, MO’s and occupancy will be in the budget year.
  2. Page layout:
    1. Top: Actual amounts for the previous year
    2. Top: Summed totals for the new budgeting year
  • By Unit Type: Select the # of Down/Admin/Models you plan on having
  1. Each cell allows for a Note
    1. Hover over a cell…Add Note appears
    2. Click on those words. Add your note
    3. Now you will see a red triangle in the corner
    4. Hovering over the cell will display this Note
  2. Options at the bottom: Bulk Update
    1. You can manually add numbers to these cells, but Bulk Update allows you to Execute a formula across a group of rows
    2. Examples: If you want to use a flat amount:
      1. None // 5.00 – Amount //  January
    3. Examples: Starting in June, you wanted 6 each month?
      1. Defined Budget //  1 – Amount  // June
    4. Clear
      1. Clear does not remove Notes
    5. Example: If you want to use the same numbers as last year:
      1. Last Year Actual // Zero – Amount //  January
    6. Save

Every time you save something on Turnover Worksheet, you will see this yellow message that your Rental Income needs to be recalculated (because income is partially based on these numbers).

    1. This message will stay up there until you recalculate Income
    2. If you close this message, it will reappear the next time you enter the budget tool.
  • I will show you how to recalculate Income when we get to that section

Turnover Worksheet – Adjusted Renewal Rate

  1. This is establishing your renewal percentages.
  2. It is by Unit Type also
  3. At the top, the totals are weighted averages of previous year actuals, and budget #’s.
  4. Shows the % Renewals, for Last Year
  5. Within a Unit Type…the prior year % is showing you the percentage of the expiring leases that renewed.

Turnover Worksheet – Move Ins

  1. All of the previous actual numbers and your budget assumptions so far are culminating in this tab
  2. 1st tab – gives us some vacancy numbers
  3. 2nd tab – knowing renewal rates helps establish how many future expiring leases should renew.
    1. This tells you how many MO’s you are going to have for each month.
  4. Information provided (for each Unit Type)
    1. Prior Yr MI’s – how many MI’s you had last year
    2. Prior Yr Occupancy – your monthly occupancy numbers for last year
  • Budget Yr Possible MI’s for that Month, that we are projecting
    1. Rentable Units (at the beginning of the month, there are that # of units that were available to rent)
      1. How many Rentable Units do we have (for Sure)
      2. Starting numbers
      3. After that, it is calculated based on your imput
      4. Vacancies + Down/Admin/Models = Rentable Units
    2. Expiring Leases (during the month, this is how many that are expiring)
    3. Renewal Rate (this is pulling from the renewal rate tab, it is the total for that Month)
    4. Projected MO’s (result of the 2 numbers above) – which adds to the available units you will have
    5. Rentable Units +  Projected MO’s = Possible MI’s
      1. How many Rentable Units could we possibly have added
    6. Budget Yr MI’s & Projected Occ : Sum of the numbers entered below
  1. For each Unit Type enter how many to you think will REALLY move in.
    1. Once this is entered, it will recalculate
      1. New year’s Projected Occupancy (all the way across)
      2. Future Month’s Rentable Units
        1. if you indicate more people will MI, your next month’s available units will drop
      3. Note: You CAN make your MI’s so high that your Projected Occ goes over 100%
      4. Once Saved, you will have created a projection of your occupancy for the new year…which is going to help us calculate rental income.

Rental Income

  1. Gross Potential Rent, Gain/Loss to Lease, Vacancy Loss
    1. Recalculate is only on GPR & Vacancy Loss, because Gain/Loss has no calculation currently
    2. GPR
      1. Based on Market Rent
      2. Recalculate: Looks at any Market Rent numbers in ResMan
  • Vacancy Loss: Down/Admin/Model
    1. Based on the numbers you entered on the turnover tab
    2. Recalculate: Pulls the numbers again
  1. Vacancy Loss
    1. Based on your occupancy numbers in the turnover tabs
    2. Recalculate: Pulls fresh numbers
  2. Only Rental Income & Turn Costs have calculations. Other buttons are straight data entry
    1. Hide Historicals (excel like screen)
    2. Can click blue year link to show vendor detail
      1. Non vendor transactions (JE, etc) show on an Other line (at the bottom)

TurnOver Costs

  1. Top Totals
    1. Prior Yr – Cost per month in the prior year
    2. Prior Yr - MO’s – Number of MO’s
  • Budget Yr – Summarized budget numbers from below
  1. Budget Yr - MO’s – Previously calculated on the Turnover worksheet
  1. In each GL Account below
    1. You can choose a Cost Per Term: Monthly/Qtr/Annually
      1. That takes the amount spent and divides it by 12 (mthly), 4 (qtr), 1 (yr)
      2. If you change it…hover over the budget year & UPDATE
        1. Cost Per Turn w/zero adjustment
        2. Takes Cost: Monthly x  New year MO’s (from totals above)
      3. Prime example of where you might use quarterly or yearly averages
        1. People move out in 1 mth, you incur the expense in the following
        2. Change the Cost: Quarterly (on each line)
        3. New Update…varies because of the # of MO’s

Export Budget (to Excel)  

 


NEED MORE HELP? WATCH THESE VIDEO'S






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