> ## Documentation Index
> Fetch the complete documentation index at: https://kb.manage.management/llms.txt
> Use this file to discover all available pages before exploring further.

# Financial Management for Directors

> How to manage service charges, budgets, and building finances

## Director Finance Workspace

The finance area gives directors a full operational view of the building's money. You can switch between **Simple** mode (plain-English workflows for budgets, transactions, demands, and annual accounts) and **Pro** mode (full double-entry **TRUST / COMPANY** ledger, period locks, Section 20 consultations, and statutory reports).

## What you can do

<CardGroup cols={2}>
  <Card title="Statutory service charge demands" icon="credit-card">
    Validate s47/s48, s21B, s20B (18-month rule), and s42 trust bank details before issuing demands, and collect via Pay by Bank or free BACS transfer.
  </Card>

  <Card title="Budgets & reserve funds" icon="pie-chart">
    Create schedule-based annual budgets across maintenance, insurance, management, utilities, and ring-fenced Section 42 reserve funds.
  </Card>

  <Card title="Double-entry ledger & bank rec" icon="list">
    Record cash movements, import CSV/OFX/CAMT.053 statements, auto-match receipts, and sign off monthly **Three-Way Reconciliations**.
  </Card>

  <Card title="Works orders, POs & payment runs" icon="piggy-bank">
    Issue Purchase Orders with spend/count caps, capture supplier invoices via AI OCR, and run payments protected by the **s42 Trust Overdraft Guardrail**.
  </Card>

  <Card title="TECH 03/11 & Companies House iXBRL" icon="bar-chart-2">
    Prepare separated Service-Charge Accounts and Company/Dormant Accounts, invite your external accountant, and file AA02 or FRS 105 accounts in iXBRL.
  </Card>

  <Card title="Board packs, LPE1 & Section 20" icon="scroll">
    Generate **Monthly Director Board Packs** and **LPE1 Conveyancing Packs**, and run immutable Section 20 major-works consultations.
  </Card>
</CardGroup>

## Setting up finances

<Steps>
  <Step title="Open Finances">
    Navigate to **Finances** from the sidebar.
  </Step>

  <Step title="Complete financial setup">
    Set the financial year, service charge schedule, and budget categories.
  </Step>

  <Step title="Add unit charges">
    Assign service charge amounts to each unit. You can use equal splits or custom apportionments.
  </Step>

  <Step title="Create the first budget">
    Estimate annual spending across the main categories so residents can see where money goes.
  </Step>

  <Step title="Generate invoices">
    Create and send invoices to residents. They appear in the resident money view for payment.
  </Step>
</Steps>

## Collecting payments

Manage.Management offers leaseholders two transparent checkout routes:

* **Instant Online Payment via Mollie Pay by Bank (Open Banking):** Instant UK Faster Payments authentication up to £40,000 with zero chargeback risk. On self-managed blocks, a flat **3% platform fee** (or **1%** on managed portfolios) can be added at checkout or absorbed by the building so **100% of the service charge** lands in your block's Section 42 trust account.
* **Free Manual Bank Transfer (BACS / Faster Payments — £0.00 Fee):** Always shown alongside online checkout with one-click copyable trust bank account details and payment reference.

## Tracking arrears & credit control

The **Arrears & Credit Control** workspace shows:

* 30 / 60 / 90+ day aged debtor balances per unit
* **Pre-Chase Statutory Compliance Gate** (confirming s47/s48, s21B, and s20B compliance before escalating to formal notice or legal recovery)
* Commercial unit VAT profiles (Option to Tax & EN 16931 invoicing where applicable)
* One-click **Solicitor Handoff Pack** export for court or First-tier Tribunal recovery

## Tips

<CardGroup cols={2}>
  <Card title="Be transparent" icon="eye">
    Residents trust directors who show clear budgets and spending breakdowns
  </Card>

  <Card title="Set the reserve fund target" icon="target">
    A healthy reserve fund prevents emergency levies when major works are needed
  </Card>

  <Card title="Use Section 20 properly" icon="scale">
    Major works over a statutory threshold require proper consultation — the platform helps track this
  </Card>

  <Card title="Reconcile regularly" icon="check-circle">
    Match bank transactions to invoices monthly to catch errors early
  </Card>
</CardGroup>


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