In the vacation rental and property management industry, maintaining accurate financial records is not just about efficiency, it’s
True trust accounting is a method of managing funds that ensures a clear distinction between money that belongs to property owners and guests (trust funds) and the money that is used to run the business (operating funds). By keeping these funds separate, you ensure that each set of funds is used for its intended purpose—protecting both clients' interests and the integrity of your business.
In the vacation rental industry, many jurisdictions require that trust and operating funds be kept separate to comply with local laws and regulations. Failing to do so can lead to severe legal consequences, including fines or the loss of your ability to operate. By utilizing true trust accounting, you’re ensuring compliance and mitigating the risk of any legal trouble.
Properly managing trust and operating funds makes your financial processes more transparent and accurate. True trust accounting allows you to track how much you owe to owners and guests at any given time, ensuring that you don’t accidentally spend money that is not yours. By segregating these funds, you also make it easier to reconcile accounts and generate accurate reports for taxes and audits. If part of your exit strategy is to grow and sell a business, being able to present accurate accounting is part of what you will need during the business analysis review.
Handling trust and operating funds together increases the risk of mistakes. For example, you might inadvertently use trust funds to cover operating expenses, which could lead to discrepancies and errors that are difficult to correct.
Using true trust accounting helps streamline operations by automating many of the processes associated with fund management. With the right software, you can ensure that trust funds are always properly allocated and that operating funds are available when needed. This reduces the administrative burden on your team, saving time and resources, and allows you to focus on growing your business.
At Barefoot Technologies, we understand the importance of true trust accounting and offer a solution that fully supports this practice. The key strength of Barefoot’s trust accounting functionality include:
Tracks and manages money flow seamlessly through different reservation types.
Ensures compliance with trust accounting standards, maintaining financial integrity.
Dual reconciliation process: Balances bank statements with check registers and trial balances.
Automates money flow based on due dates, ensuring timely transactions.
Supports various booking channels (VRBO, Airbnb, direct bookings) with seamless integration.
Provides customizable owner statements with direct email functionality.
Facilitates batch vendor payments for efficiency.
Generates detailed property statements with review and adjustment capabilities.
Enables ACH payments for owners, streamlining fund distribution.
Offers a bank reconciliation process to ensure accurate financial tracking.
Supports custom financial reporting, including potential workarounds for P&L reporting.
Integrated vendor payment process with automated tracking.
Links work orders to properties, ensuring accurate charge allocations.
Allows batch processing of vendor payments for streamlined operations.
Accounting team involvement in setup and implementation for tailored configurations.
Ongoing support via chat functionality for real-time assistance.
Custom report development options for specific financial needs.
Barefoot prioritizes trust account management with a deeper focus on compliance and transparency.
Offers flexibility in financial reporting to adapt to specific business needs.
Enables detailed contract and pricing discussions to tailor solutions for clients.
Maintaining true trust accounting is more than just a best practice—it’s essential for compliance, transparency, and the long-term success of your business. By ensuring a clear distinction between trust and operating funds, you protect your owners, guests, and your company’s financial integrity. With Barefoot Technologies, you gain access to a comprehensive, industry-leading trust accounting system designed to streamline operations, minimize risk, and keep your business audit-ready.
Don't leave your trust accounting to chance—experience the Barefoot difference today. Schedule a demo and see firsthand how our platform can empower your vacation rental management business with unparalleled financial accuracy, automation, and compliance.
📅 Book your demo now and take the first step toward worry-free trust accounting!