A Clean System to Track Management Fees vs Sinking Funds

In Singapore property management, keeping management fees and sinking funds clearly separated is not just best practice — it’s a regulatory necessity under the Building Maintenance and Strata Management Act (BMSMA). Yet for many managing agents, the challenge lies in maintaining both streams accurately across hundreds of owners, multiple bank accounts, and recurring transactions.

Here’s how a clean, automated system keeps these two core funds distinct, transparent, and effortless to reconcile.

1. Maintain Separate Ledgers from Day One

The simplest way to prevent confusion is structural: treat management fees and sinking funds as two separate accounting streams.
Each should have:

• Its own bank account
• Its own income and expense categories
• Its own opening balance and reporting structure

With ccMonet, this separation is built in. Each fund operates as a distinct ledger, yet sits within the same property file — allowing teams to view both together or individually without mixing transactions.

2. Automate Fee Allocation at Invoice Level

Every owner’s monthly bill typically includes both management and sinking fund components.
Manual splitting invites errors, especially across large developments.

ccMonet automates this by:

• Applying a billing formula based on share value or area
• Separating amounts into the correct ledgers automatically
• Generating a single invoice for the owner, but posting two income entries in the background

The system ensures management fee and sinking fund allocations always stay in sync, down to the cent.

3. Match Payments Accurately Across Funds

Owners often pay both fees in a single transfer, which complicates reconciliation.
ccMonet’s AI Bank Reconciliation identifies these combined payments, splits them according to the billed breakdown, and matches each portion to the correct ledger.
Unmatched payments or shortfalls are flagged immediately, ensuring your ledgers remain balanced.

4. Track Expenses Separately, With Shared Visibility

Each fund serves a different purpose:

• Management fees: daily operations — cleaning, security, landscaping, utilities.
• Sinking fund: long-term asset replacement — lift upgrades, repainting, waterproofing.

ccMonet categorises expenses automatically into the right fund based on vendor, work order, or cost type.
Both sets of expenses remain visible to the council and audit teams, without the risk of cross-posting.

5. Generate Dual Reports Effortlessly

Instead of exporting and reconciling manually, ccMonet provides real-time dashboards for:

• Fund balances and inflows/outflows
• Outstanding owner contributions
• Comparative trends (e.g., sinking fund growth vs. maintenance cost trends)

Reports are instantly exportable for council meetings, audits, or AGMs — fully compliant and neatly formatted.

6. Keep the Audit Trail Clean

Every transaction — invoice, payment, expense, adjustment — is automatically tagged to its respective fund and owner.
That means your records are always ready for audit, with zero manual tracing needed.

7. Build Calm Into Every Cycle

A clean system removes the chaos of balancing dual ledgers.
With ccMonet, billing, reconciliation, and reporting for both funds become continuous, not reactive.

ccMonet helps Singapore managing agents and MCST teams maintain full clarity between management fees and sinking funds — ensuring compliance, consistency, and calm operations, month after month.

Keep your ledgers clean. Keep your team calm. Bill and track both funds effortlessly — with ccMonet.

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