General ledger

Horizon provides a central accounting solution for all sub-ledger entries to deliver management and statutory reporting by property, entity and group.

Structure

Horizon’s comprehensive and robust general ledger operates on an accrued basis. Sub ledger transactions generated against a property will be posted in real time into the ledger according to the ownership interest each entity has in them. Horizon has the ability to automate these postings by ensuring that rent due or paid in advance is automatically deferred or prepaid into the ledger system against the period to which it relates.

Adjustments

Adjustments that previously required days of manual input – such as amortising the rent due from a lease (net of incentives, rent steps and rent frees) over its length, revaluing outstanding foreign currency transactions, accounting for the impact of revised capital valuations, and accruals – are standard month-end closedown functions in the system. This is designed to save time and effort and increase the transparency and auditability of the treatment.

Reporting

A series of online enquiries enable users to interrogate any double-entry transaction and drive composite reporting requirements. Horizon can also hold additional flex fields driven from and validated against information managed in the database to provide additional analysis. Data can be grouped and sub-totalled by any field or combination of fields, with common queries saved as templates and reused as required.

Journals

Horizon provides for one-off, reversing and recurring journals, and also allows journals to be prepared offline in Excel and uploaded on completion. User access controls and authority levels determine who can access, post and approve any journal on the system. A similar process controls budgets and forecasts, driving standard budget analysis reports which capture variance commentary from within the system.

Accounts receivable

With Horizon, you can enable all income streams generated from your property and assets to be managed and recorded effectively. It provides a complete suite of functions to handle the end-to-end life cycle of all income – from invoicing through to debt management and settlement.

 

Transactions & Debt

All transactions can be recorded against a customer account, enabling the creation of a complete trading history. Horizon also reflects the holding structure of the customer, thereby monitoring exposure by both parent and brand and enabling parent entities to settle the debt of each constituent company. Likewise, it provides a consolidated overview of all debt for each customer to ensure the coordination of all credit control activities. Debt chasing letters are produced automatically, while all follow-up activities and results are sent to users and centrally recorded on the customer’s account. Where interest can be levied on outstanding debt, Horizon records the terms of the interest charge, and will automatically raise a pending charge subject to management approval.


Tenant Charges

Recurring charge terms will be held against a lease or licence in the system and the charges will be raised when due. A rent demand process is used to approve those charges, which – along with other tenant-facing documents – can be sent via e-mail directly to the customer. To ensure transparency and compliance, a rent-changed report identifies movements in the billings cycle and this enables users to manage by exception – while audit trail and exception reports ensure that this process is robust and reliable. One-off charges can be raised directly against the customer account and are included in many standard leasing workflows; for instance, a one-off charge for dilapidations can be raised when moving a tenant out.

Accounts payable

Horizon manages all expenditure incurred while running a real estate portfolio. Recurring costs, such as lease payables and ongoing local tax charges, as well as ad hoc expenditure can be controlled and processes within a single suite.

Recurring Charges

A detail of the charge information is held centrally in the system against the property. This allows liabilities to be generated on whatever frequency they are due, while allowing for changes to the charge amounts.

Ad Hoc Expenses

Once received, invoices are registered and approved using a standard workflow, which includes a scanned copy being sent to the document management system. Multiple approval levels ensure a robust, compliant and auditable process.

Transaction Records

Whether recurring or ad hoc, transactions are raised against a single supplier account to enable a single point of enquiry. Suppliers include landlords, maintenance contractors, agents or any other type of organisations that provides services to the property.

Cost Recovery

When logging invoices, integration with expense recovery functionality ensures any recoverable costs – such as those under service charge or similar mechanisms – are directly accounted for. This process can be automated for even greater efficiency.

Payment Processes

Once approved, payment of recognised liabilities is controlled through a separate workflow to ensure further separation of duties within the accounting team. Horizon can integrate with existing payment solutions, or directly with banking systems.

Ongoing Analysis

Horizon enables users to perform an extensive analysis of all outgoings. This can be done over a specified period, and includes a breakdown by supplier, service and accruals gained depending on the information you require.

Expense recovery

When running a real estate portfolio, it’s essential to be able to easily and effectively manage service charges and other expense recovery requirements. Horizon offers an in-built service charge ledger for a range of common area management and expense recovery situations – and fully supports the latest RICS service charge guidelines.

 

Apportionments

Multiple schedules can be created and apportioned between the property’s units on either a base or weighted floor area, or a percentage split basis. The functionality provides the ability to make changes to the way the service charge or expense profile is calculated throughout the year – if the size or number of units change as a result of a major development or refurbishment, the service charge is apportioned appropriately.


Calculations

Expense recovery caps or floors negotiated with the tenant can be reflected on a lease-by-lease basis, which in turn can then be indexed and modified year-on-year. In addition, budgets can quickly and easily be entered into the system using a standard two-way Excel interface, allowing actuals to be downloaded from the current year service charge, modelled extensively and then uploaded back into Horizon.


Reports

Reports analyse actual costs against planned expenditure throughout the course of the year, enabling effective cash flow management and online reconciliation. These reports illustrate the vacancy cost for the service charge year-to-date, identifying both the amount of irrecoverable charges associated with the property – which can be automatically billed back to the landlord as required – and the reason for that cost.

Manage all aspects of accounting for your portfolio in one fully featured solution with deep two-way integrations

Cash Management

Utilise functionality to enable the reconciliation of all bank accounts and cash transactions. The system offers a central point of enquiry for all payments and receipts, online interrogation of bank balances and production of cash flows.

Purchase-to-Pay

Horizon offers a full purchase-to-pay process, with the integration of purchase orders to the accounts payable functionality in the system allowing users to record, manage and control the full life cycle of the payment.

Client Accounting

Keep on top of outstanding income and easily report progress to owners. Leverage automated client fund management, adhere to RICS guidelines and put checks in place to de-risk audits and ensure good practice.

Find out more

If you would like to find out more about how our Horizon financial accounting software can help you, please get in touch today.