In Singapore’s property management accounting, one recurring challenge for MCST teams and managing agents is ensuring that Management Fees and Sinking Funds remain clearly separated—both operationally and financially. When these two pools of money are mixed, it creates audit complications and reduces transparency for council members and owners alike.
Here’s how modern property management teams are keeping these accounts clean, compliant, and automatically reconciled with AI accounting tools like ccMonet.
Under Singapore’s Building Maintenance and Strata Management Act (BMSMA), the Management Fund covers day-to-day operational expenses—security, cleaning, landscaping, utilities—while the Sinking Fund is reserved for long-term capital works such as repainting, lift replacement, or major repairs.
Mixing these funds, even temporarily, can:
Maintaining strict separation ensures clarity, compliance, and owner confidence in how funds are managed.
When owners are billed, their invoice usually includes multiple components: management fees, sinking fund contributions, and possibly interest or miscellaneous charges.
ccMonet automates this process by breaking down each unit’s invoice into the correct fund categories. The system:
This eliminates the risk of manual misallocation and ensures accurate fund balances throughout the year.
When owners pay their monthly dues, payments often arrive in bulk transfers with minimal referencing. Without automation, reconciling which portion belongs to which fund becomes a tedious manual exercise.
ccMonet’s AI Bank Reconciliation feature automatically matches payments to invoices and splits them across the relevant funds. Even if an owner pays multiple months at once, the system tracks the amounts precisely, keeping both the Management Fund and Sinking Fund up to date.
During quarterly council reviews or AGM audits, property managers are expected to provide:
ccMonet compiles these automatically, pulling real-time data directly from transactions. Each report is audit-ready, consistent, and clearly separates operational expenses from capital reserves—saving hours of manual consolidation.
Invoices for maintenance works, contractor services, or capital projects can easily overlap between funds. ccMonet ensures that each vendor invoice is tagged correctly at the point of entry, based on the nature of the work.
This tagging not only simplifies bookkeeping but also ensures audit trails remain clean and compliant.
With full automation and categorisation, MCST teams can generate fund-wise statements and audit trails at any time. Each transaction—bill, receipt, or expense—is clearly linked to its respective fund, providing full visibility for council members and auditors during financial reviews.
A clean separation between management fees and sinking funds isn’t just about compliance—it’s about building trust and operational efficiency.
With ccMonet, MCST and property management teams can automate billing, reconciliation, and reporting across both funds—ensuring every transaction is transparent, accurate, and audit-ready.
Ready to keep your property accounts cleaner than ever?
Visit ccMonet and discover how AI can simplify fund management for Singapore’s property professionals.
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