v. Financial Operations & Reporting

Financial operations and reporting capture how operating performance is recorded, monitored, and communicated. These processes ensure transparency, support decision-making, and provide reliable inputs for valuation, compliance, and investment analysis.

Accounts Payable

Amounts owed by a property or operating entity to vendors or service providers.

Accounts Receivable

Amounts owed to a property by tenants or other counterparties, typically related to rent or reimbursements.

Accrual Accounting

An accounting method that records revenues and expenses when they are earned or incurred, rather than when cash is exchanged.

Budget Variance

The difference between budgeted and actual financial performance.

Cash Accounting

An accounting method that records transactions only when cash is received or paid.

Financial Statement

A formal report summarizing income, expenses, assets, and liabilities for a property or entity.

Operating Statement

A report detailing a property’s revenues and operating expenses over a defined period.

Reconciliation

The process of verifying that financial records align with supporting documentation and transactions.

Reporting Period

The defined timeframe over which financial results are measured and reported.

Reserve Account

Funds set aside to cover future expenses such as capital repairs or replacements.