We just released the Instant Cash Flow Reports in the AvenidaHQ platform. It's available for every holiday home owner that uses AvenidaHQ to run a financial administration for the holiday rental they own.
This is what an Instant Cash Flow Report will show you
- Net cash flow distribution per month
- Total overview of an overview per property
- Cost distribution per ledger (so that you know what you're spending most on)
- Total annual summary on income, costs and gross result
You can find the Cash Flow Reports in your account.
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Cash flow VS taxable income
When calculating the ROI on my property, I like to use the cashflow. For me, this is most realistic, as it represents the actual money coming in and the actual money coming out.
For example:
If you're spending 10k on furniture, the 10k will have a negative impact of 10k on your cash flow. However, you can only deduct 1k in your taxable income calculation for that year. So your income for taxes will look far more positive than your actual cash flow.