A Clear Way to Track Management Fees vs Sinking Funds

For MCSTs and Managing Agents, the line between Management Fees and Sinking Funds is clear in theory — but often blurred in daily accounting. Both flow from owners, both are billed together, and both sit in the same payment streams. Without a clear system, funds get mixed, reports lose accuracy, and councils struggle to explain how money is being used.

Here’s how professional property teams are keeping these two key accounts crystal clear — automatically, month after month.

1. Understand the Split — and Why It Matters

Management Fees and Sinking Funds serve entirely different purposes:

• Management Fees: cover recurring expenses — cleaning, security, utilities, management staff, etc.
• Sinking Funds: are for long-term capital works — repainting, major repairs, equipment replacement.

When these aren’t tracked separately, cash flow appears inflated, and councils can’t assess real operating health. Even worse, commingled funds can raise compliance issues under Singapore’s Building Maintenance and Strata Management Act (BMSMA).

2. Bill Both Together, Track Separately

Owners prefer a single invoice — but accounting needs two distinct ledgers.

With ccMonet, Managing Agents can issue one combined bill while keeping Management Fee and Sinking Fund transactions automatically separated in the backend.
AI tags each component based on your billing formula (e.g. 70% management, 30% sinking), and posts them into their respective ledgers.

That means:

• Clean distinction between operating and capital income
• Accurate fund balances for council reporting
• Seamless reconciliation even when owners pay one lump sum

3. Automate Collection and Allocation

Once payments arrive, ccMonet’s AI Reconciliation automatically identifies the source invoice and allocates the amount to both funds proportionally.
If an owner underpays or pays late, the system applies the shortfall consistently across both accounts — maintaining fairness and auditability.

No manual allocation. No formula slips. Just precise, systemised posting every time.

4. Real-Time Fund Visibility for Councils

Council members frequently ask: How much do we have left in the sinking fund?
With ccMonet, that question is answered instantly.

AI Insights provides live dashboards showing:

• Current balances in Management Fee and Sinking Fund accounts
• Monthly inflows vs. outflows
• Forecasted fund sufficiency based on upcoming maintenance cycles

This transparency builds confidence with both owners and auditors.

5. Prepare Reports That Always Add Up

Because every transaction is tagged at source, ccMonet can generate BMSMA-compliant financial reports automatically — separating operational and sinking fund activities with no manual edits.
Auditors can trace every figure back to its original invoice, while MCST managers can present clean, credible statements to councils or AGMs.

6. One Invoice, Two Ledgers, Zero Confusion

When Management Fees and Sinking Funds are tracked cleanly, the entire property management flow becomes simpler — billing, reconciliation, reporting, and compliance all stay in sync.

ccMonet gives Managing Agents a clear, automated way to manage these dual accounts without extra admin — ensuring transparency, accuracy, and peace of mind across every property.

Keep your funds separate, your books clear, and your council confident.
Let ccMonet handle the split — so you can focus on managing, not micromanaging.

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