A Simple System to Track Management Fees and Sinking Funds Separately

In property management, clarity between management fees and sinking funds is essential. Both are collected from the same owners but serve very different purposes — one funds day-to-day operations, while the other ensures long-term asset health. Yet, in many MCST setups, these two streams still flow through overlapping ledgers, making it difficult to report, reconcile, or audit cleanly.

Here’s how managing agents and MCST teams in Singapore are building a simple, structured system to track both clearly — powered by ccMonet.

1. Treat Fees and Funds as Distinct Ledgers

Start by separating management fees and sinking fund collections from day one.
Each should have:

• Its own income category
• A dedicated cost account (for expenses tied to that fund)
• Clear linkage to the corresponding bank account or sub-ledger

ccMonet’s AI Bookkeeping enforces this automatically — every invoice, receipt, or payment entry is categorised by fund type, ensuring your management fee and sinking fund data never blend.

2. Automate Monthly Billing for Both Streams

Manual dual invoicing is error-prone.
With ccMonet, recurring invoices can be generated for both funds in the same monthly cycle:

• Management fees: recurring operational charges per unit
• Sinking fund: periodic reserve contributions (often by share value or area)

AI creates and labels both invoice types automatically, keeping each fund’s balance sheet updated without extra admin.

3. Match Payments to the Right Fund Instantly

Owners often pay both fees in a single transfer, which creates reconciliation headaches.
ccMonet’s AI Bank Reconciliation solves this by auto-splitting payments into the correct fund allocations — even when a lump sum is received. The system recognises invoice references, amounts, and owner data to distribute payments accurately.

4. Keep Expense Allocations Clean

Expenses should always reflect the right fund purpose:

• Management fees → operations, cleaning, admin, or utilities
• Sinking fund → capital repairs, lift replacement, repainting, etc.

ccMonet’s AI categorisation ensures every vendor bill or work order is posted under the proper fund, preventing cross-charging and ensuring transparent fund usage for audits.

5. See Fund Balances in Real Time

ccMonet’s AI Insights dashboard displays:

• Monthly collection rate per fund
• Current fund balance
• Outstanding owner dues
• Expense ratio per category

You’ll know instantly if the sinking fund is being depleted too quickly or if management fee arrears are growing — no spreadsheets required.

6. Simplify Reporting and Audits

When management fees and sinking funds are cleanly separated, reporting for the MCST, auditor, or AGM becomes straightforward.
ccMonet produces fund-specific ledgers, statements, and cash flow reports automatically — complete with timestamps and audit trails.

Keep Funds Separate, Keep Operations Smooth

Tracking management fees and sinking funds doesn’t need complex software — just consistent structure and automation that never mixes the two.
With ccMonet, MCST teams can manage both streams clearly, confidently, and in compliance — all within one system.

Start separating your funds the smart way — and let ccMonet keep every dollar exactly where it belongs.

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